OPTIONS PLAY: CRUDE OIL Bubble About To Burst
With A Good Amount Of Bearish Technicals And Fundamentals CRUDE OIL Could Finally Fall Below $60/Barrell.
MY ANALYSIS
Fundamentally, I believe CRUDE OIL prices will move lower in the coming days and weeks fro 3 basic reasons:
1. High Unemployment Curbing Domestic Demand
2. Chinese Credit Tightening Curbing Global Demand
3. Regulations Inhibiting Institutional Speculation
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
