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Options Play: Bearish Crude Oil Fundamentals Finally Take Hold
Monday, February 08, 2010

by Matt McKinney of Zaner

OPTIONS PLAY: Bearish CRUDE OIL Fundamentals Finally Take Hold

Both The Technicals And Fundamentals Of CRUDE OIL Could Send Prices Tanking.

MY ANALYSIS

Fundamentally, demand for CRUDE OIL continues to slide to due high unemployment, credit tightening in China, and regulations that seem to inhibate institutional traders from playing the CRUDE OIL market. In addition, supply is abundant.

Technically, this market is in a SUPER-TREND lower indicated buy the 2 MA's. See daily chart below.

OPTIONS PLAY

JUNE CRUDE OIL- $73.19/BARRELL

OPTION EXPIRY- MAY 17TH

CONTRACT SIZE- 1,000 BARRELLS

LEVREGAE FACTOR- $1=$1,000

BUY THE JUNE 58-63 PUT SPREAD

FOR A FREE CME REPORT ON OPTION BASICS CLICK HERE: http://www.zaner.com/3.0/mmck5.asp

We also buy in a 3 to1 ratio an outright CALL in case the market makes a MAJOR move against us.

WE ARE ALSO BUYING OPTIONS IN U.S. 30 YEAR TREASURY BONDS, GOLD, GRAINS, SOFTS, and OIL.

THE BEST SERVICE I CAN OFFER YOU AS MY CLIENT IS WHEN TO GET IN AND WHEN TO GET OUT!

Call or email me with your phone number for a detailed explanation of the strategies 312-277-0115 or mmckinney@zaner.com.

Futures, options and forex trading is speculative in nature and involves substantial risk of loss. All known news and events have already been factored into the price of the underlying commodities discussed. The limited risk characteristic of options refers to long options only; and refers to the amount of the loss, which is defined as premium paid on the option(s) plus commissions

Recent articles from this author

Options Play: Gold Moves Higher - Thursday, March 18, 2010
Options Play: Gold Looking Strong - Wednesday, March 17, 2010
Options Play: Gold Could Re-Test Record High - Wednesday, March 17, 2010
Options Play: Gold Begins To Run - Tuesday, March 16, 2010
Managed Futures Update: Over 175 Million Under Management - Monday, March 15, 2010

About the author

Matt McKinney resides in Chicago, Illinois. He has specialized in full-service options trading since 1998. He can be reached at 312-277-0115 or mckinney@zaner.com.

Matt has extensive experience trading options on the energies, metals, grains, softs and 30-year bond market. His strategies include time frames of 45-120 days with the ability to liquidate at any time. The downside risk in the strategies recommended is limited and pre-determined.

Matt's experience includes both fundamental and technical research. He formulates a specific market recommendation and strategy, while ensuring that the client understands the potential reward as well as the risk. If the client understands the trade, risk and potential reward, then the parties move on the trade.

From that point forward, Matt watches the trade every step of the way. He keeps the client posted on a regular basis and recommends when to take a profit or cut a loss. It's up to the client to make this decision based on the research provided.

Matt understands that this business is based on building a long-term relationship with the client, not only being a hardworking broker, but a friend as well. So, whether you're a novice trader who wants to participate in options on futures or an experienced trader who doesn't have the time to sit in front of the screen all day, Matt McKinney can help.

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