3-22 June T-Bonds used the recent events in the Mid East and Far East as an excuse to digest the recent 6 month sell-off with a 50% Fibonacci retracement and now we are expecting the market to resume its downtrend.  Remember higher interest rates will translate into lower bond prices so we feel that this trade would be your best bet should that transpire.  Buy the June 120 put and sell the June 117 put as your covered short option; also sell the June 125 call as a naked option to collect enough premium to pay for the bear put spread.  This trade is at a cost of 8 tics or $125 without transaction costs.  So then between 120 and 125 (if the market doesn't go down) that's your risk, then above 125 you have unlimited risk like a futures contract.  The profit potential with the market at or below 117 would be $3,000 based on intrinsic value (no time value).  Happy Trading and Call me!

_{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 ARE INTENDED 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 PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION'S STRIKE PRICE COMPARES TO THE UNDERLYING FUTURE'S PRICE. THE FUTURES CHARTS AR E NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT, OPTION PRICES MAY ONLY MOVE A FRACTION OF THE PRICE MOVE IN THE UNDERLYING FUTURES. IN SOME CASES, THE OPTION MAY NOT MOVE AT ALL OR EVEN MOVE IN THE OPPOSITE DIRECTION OF THE UNDERLYING FUTURES CONTRACT.}