OPTION TRADE OF THE DAY!
02/03/2010
MARKETS-LOOKING AT EXTREME RANGES
The aftermath of recent moves and volatility in the financial & trading world is that a number of futures contract are trading at or near historic highs. As many of the elements which drove markets to the extremes subside or evolve (or consumers balk at prices), we are looking at opportunities to take advantage of the downside pullback in many of these markets using plain vanilla option strategies.
We like buying out of the money puts in October 2010 Sugar (1400 strike) for about $200, Sept 2010 Cocoa puts (2100 strike) for about $200.00, Sept Eurodollars puts (9900 strike) for $350. This trade will also work well using a bear put spread. Also take a look at August 2010 Gold puts ($750.00 strike) for $250.00. All of these trades will include a commission cost.
Your risk will be limited to the premium paid for these options plus commissions.
Please contact us with any questions or assistance in placing these trades.
Paul Brittain
Whitehall Investment Management of Las Vegas
www.whitehallvegas.com
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 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
Whitehall Investment Management Las Vegas
Email: [email protected]
Phone 877 270 8403, 702 463 0718
