S&P Iron Condor

_{OPTION TRADE OF THE DAY!}

7-16

S&P Iron Condors/Short Option Strangles- the S&P seems to have found its “comfort zone” and should pretty much trade sideways for the next few weeks. Take advantage of this situation you can use an iron condor which would have limited risk or a short option strangle which has unlimited risk.

In either case we like using the August 1000 calls and the August 800 puts as our primary shorts seeing the market trading between these two levels for the next few weeks, we are selling the spread for a collection of 7 handles or $1750 which is the most we could hope(minus commission) to keep based on the success of the trade. A short option strangle has unlimited risk and full margin, so for those that are uncomfortable with this you can add the wings creating an iron condor. We like buying the 765 put and buying the 1035 call which would leave a premium of 370 or $925, and a limited risk of $7825.

_{* There is a substantial risk of loss in trading futures and options.}

_{PLACING CONTINGENT ORDERS SUCH AS “STOP LOSS” OR “STOP LIMIT” ORDERS WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS. SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.}

_{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. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. 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 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 OF THE UNDERLYING FUTURES CONTRACT.}

_{Paul Brittain}

_877-270-8403

_702-463-0718

_{paul@binvstgrp.com}