OPTION TRADE OF THE DAY!
Crude Oil is currently in a downward pattern and it’s recent rally seems to have fullfilled its Fibonacci Digestive needs, technically the market is giving us a target under 50.00
#1 Bear Put Spread with a Naked Leg
Buy the July Crude Oil 5100 put
Sell the July Crude Oil 4900 put
Sell the July Crude Oil 5500 Call NAKED LEG
Margin Requirement $2100
Risk /Reward Profile The Trade has unlimited risk above 55.00 with limited profit potential of $2,000 plus the credit collected before commission and fee considerations with the market at or below 49.00 The Trade is currently being filled at a $560 credit
#2 Bear Put Butterfly
Buy the July 5100 put
Sell two July 4900 puts
Buy the July 4700 put
Cost and Risk $250 before commission and fees
Profit Zone is between 5100 and 4700 with 4900 being the maximum return of $2000
Disclaimer: Trading futures and options on futures involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results.
Please remember that spread trades are charged commission and fees per leg, per contract
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Commodity Trading School
Commodity Trading School dba of Reliance Capital Markets II, LLC.
Risk Disclaimer: This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities and/ or financial products herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily exhaustive and is not guaranteed to be accurate. Any market or other opinions expressed herein are those of the author only as of the date indicated and not necessarily those of Reliance Capital Markets II, LLC. For customers trading options, the charts included in this report are presented for informational purposes only. They are intended to show how investing in options can depend on the underlying cash and/ or 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 options strike price compares to the underlying cash and futures price. The charts are not intended to imply that option prices move in tandem with cash and futures prices. In fact, option prices may only move a fraction of the price move in the underlying assets and/ or futures. In some cases, the option may not move at all or even move in the opposite direction of the underlying asset and/ or futures contract. You should fully understand the risks associated with trading futures, options and retail off-exchange foreign currency transactions (“Forex”) before making any trades. Trading futures, options and Forex involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources. You may lose all or more than your initial investment. Opinions, market data and recommendations are subject to change without notice. Past performance is not necessarily indicative of future results.