TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.
OPTIONS PLAY: COMEX GOLD FUTURES Rebound
After a major sell off of more than $30/ounce on Friday (11/12/10) COMEX GOLD FUTURES have rebounded here today (11/15/10, as of 10:20 am ctrl).
MY ANALYSIS
Fundamentally, I believe that COMEX GOLD FUTURES will rebound higher as we head into the end of the 4th quarter, due to the U.S. Dollar being susceptible to possible sharp sell-offs causing inflationary fears. In addition, I believe that calls or call spreads should be considered on any pull backs in this market.
FOR AN IN DEPTH EXPLANATION OF WHAT QE2 COULD MEAN TO YOU CALL ME AT 1-312-277-0115
Technically, COMEX GOLD FUTURES are still in a trend higher which is indicated to me by the market trading above the 20 day Moving Average and the 20 day Moving Average pointing higher. See daily chart below. As COMEX GOLD FUTURES pull back to this MA in my opinion, it presents an opportunity to buy calls or call spreads, although not without commesurate risk. For additional charts, studies, and commentary can be found at: http://markethead.com/2.0/free_trial.asp?rid=McKinney
OPTIONS PLAY
BUY BULL CALLS OR CALL SPREADS
We also buy in a 3 to1 ratio an outright PUT in case the market makes a MAJOR move against us.
FOR OUR SPECIAL REPORT ON COMEX GOLD VS. GOLD ETF’S:http://www.zaner.com/3.0/mmckGold.asp
WE ARE ALSO FOCUSING ON COMMODITY OPTIONS IN U.S. 30 YEAR TREASURY BONDS, SILVER, OIL, GRAINS, SOFTS, and INDICES.
FREE QUOTE- “You must have the confidence to succeed, but also the fear that you might fail.” -Otto Graham
Before you place any of these trades in your account you should call or email me with your phone number for a detailed explanation of the strategies and the risks involved at 312-277-0115 or mmckinney@zaner.com.
Futures, options and forex trading is speculative in nature and involves substantial risk of loss. All known news and events have already been factored into the price of the underlying commodities discussed. The limited risk characteristic of options refers to long options only; and refers to the amount of the loss, which is defined as premium paid on the option(s) plus commissions.
FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE-MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STRIKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT, OPTION PRICES MAY ONLY MOVE A FRACTION OF THE PRICE MOVE IN THE UNDERLYING FUTURES. IN SOME CASES, THE OPTION MAY NOT MOVE AT ALL OR EVEN MOVE IN THE OPPOSITE DIRECTION
