OPTION TRADE OF THE DAY!
Crude Oil has been extremely volatile over the last 30 days. Now as we head into an OPEC meeting where their intended goal is to cut production to support prices, however how it ends up still remains to be seen, however we are leaning towards them agreeing to the cuts.
Recommendation Crude Call Butterflies
Buy the February Crude Oil 5000 Calls
Sell Two February Crude Oil 5200 Calls
Buy the February Crude Oil 5400 Calls
Cost and Risk $250 per spread plus commission and fees
Profit Potential the trade would be profitable anywhere above 50.25 and below 53.75 with 52.00 showing the greatest return of $2,000 before commission considerations
Expiration January 17th
Please remember that spread trades are charged commission and fees per leg, per contract
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. Selling options subjects the investor to margin calls and virtually unlimited risk.
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. Past performance is not indicative of future results.