OPTION TRADE OF THE DAY!
01/27/10
MARKET- CORN
Corn is heading into a seasonal trend of higher prices as the uncertainty of planting season should offer opportunity for price increases going into the next several months. Technical indicators are also offering support to a rebound in prices. To take advantage of this price turnaround; Buy the July $4.00 call, Sell the July $4.50 call, and sell the July $3.40 put. The trade looks like it can be done for a payment of $50-$100 plus commissions (there will be 3). Maximum profit on this trade will be $2500.00 minus premium paid and commissions. The trade has unlimited risk under $3.40, where it will have the same risk as a long futures position.
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
