TRADING COMMODITY FUTURES AND OPTIONS 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.
OPTIONS PLAY: SILVER FUTURES TRENDING
The COMEX/GLOBEX SILVER FUTURES market continues to move higher and according to my technical analysis, the SUPER-TREND higher remains in tact.
MY ANALYSIS
Fundamentally, as the U S. DOLLAR INDEX rebounded today(1/24/12), COMEX/GLOBEX SILVER FUTURES fell slightly. The main factor moving tthe markets according to Bloomberg News being that the Greeks failed to come up with a plan and negotiations stalled for now (1/24/12).
Technically, I see the COMEX/GLOBEX SILVER FUTURES market still in a SUPER-TREND higher as the market trades above both the 9 day SIMPLE MOVING AVERAGE and the 20 day SIMPLE MOVING AVERAGE as the indicators point higher. See daily chart below.
Additional charts, studies, and commentary can be found at: http://markethead.coM/2.0/free_trial.asp?rid=McKinney
OPTIONS PLAY
A potential play here could be to buy May Silver Bull Call Spreads or May Calls. Another potential play could be to sell deep out of the money puts to collect premium. Either play does involve substantail risk and is not suitable for everyone. When we buy Call Spreads or Calls we also buy in a 3 to 1 ratio, a Put to help protect us against a MAJOR correction in the market. For the details on strike prices, expiration dates, size, and exact risk please contact me at mmckinney@zaner.com or phone me direct at 312-277-0115.
FOR 25 OPTION STRATEGIES CLICK HERE: http://www.zaner.com/3.0/mmck.asp
WE ARE ALSO FOCUSING ON COMMODITY OPTIONS IN U.S. 30 YEAR TREASURY BONDS, GOLD, OIL,
GRAINS, SOFTS, and INDICES.
FREE QUOTE- "Cheers to life, love, and loot." -Captain Morgan
If you would like to see past articles: http://mmckinneyfutures.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.
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 ARE 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
