OPTION TRADE OF THE DAY!
02/17/2010
MARKETS-RBOB (UNLEADED GASOLINE)
RBOB (Reformulated Blended for Oxygen Blending) Gasoline-known in general terms as Unleaded Gasoline- is entering is seasonal tendency to head higher as suppliers begin to purchase stocks ahead of the summer driving season. With capacity utilization from refineries likely to remain low, there could be an opportunity to take advantage of potential rise in prices. We recommend two option strategies.
July RBOB Butterfly Call Spread: Buy the July RBOB 215 Call, Sell the May RBOB 225 Calls, and Buy the July RBOB 235 Call. The trade can be done for a debit of approx $400-$450 plus commissions (there will be four). The maximum profit potential on this trade is $4200 minus the amount paid for the trade. Risk is limited to the amount paid for the trade. There will be a small margin requirement for this trade.
May RBOB Bull Call Spread with a Naked Leg: Buy the July RBOB 220 Call, Sell the July RBOB 230 Call, Sell the July 180 Put. The trade can be done for an approximate credit of $400 plus commissions (There will be three). There is unlimited risk on the trade below the 180.00 level in May RBOB and a maximum potential profit of $4200.00 plus or minus the costs of the trade. There will be a margin requirement for this trade
See attached charts
Please contact us with any questions or assistance in placing these trades
Paul Brittain
Whitehall Investment Management of Las Vegas
There is a substantial risk of loss in trading futures and options
Past performance is not indicative of future results.
The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY AREINTENDED 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 PURCHASERWILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HISRIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STRIKEPRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICESMOVE IN TANDEM WITH FUTURES PRICES. IN FACT, OPTION PRICES MAY ONLY MOVE A FRACTION OF THE PRICE MOVE IN THE UNDERLYINGFUTURES. IN SOME CASES, THE OPTION MAY NOT MOVE AT ALL OR EVEN MOVE IN THE OPPOSITE DIRECTION OF THE UNDERLYING FUTURES CONTRACT.
Paul Brittain
Whitehall Investment Management Las Vegas
Email: paul@binvstgrp.com
Phone 877 270 8403, 702 463 0718
