OPTION TRADE OF THE DAY!
01/28/10
MARKET- FEEDER CATTLE
Feeder Cattle is heading into a seasonal tendency to head down going into the spring and summer months. The recent run ups in prices along the meat complex could offer additional momentum to retrace to the downside.
To take advantage of this potential opportunity, Buy the May Feeder Cattle 100.00 Put, Sell the May Feeder Cattle 96.00 Put and Sell the May Feeder Cattle 104.00 Call. The trade currently costs about $125.00 plus commission (there are 3). Maximum gain on the trade would be $2000 minus the costs of the trade. The trade has unlimited risk above the 104.00 level in the May Feeder Cattle contract.
Please contact us with any questions or assistance with putting on this trade.
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 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: [email protected]
Phone 877 270 8403, 702 463 0718