OPTIONS PLAY: CRUDE OIL Makes New Low For The Move
Stock-Markets / Options & Warrants Dec 12, 2009 - 04:36 PM GMTBy: Matt_McKinney
CRUDE OIL has traded lower 7 out of the last 8 days. See my previous blog post for more details: http://mckinneytrading.blogspot.com/..
MY ANALYSIS:
Fundamentally, the supply-side issues seem to be in control here. Simply put, there is a large suppy. Despite consumption on the rise in China, a better than expexcted reatail sales number, and an uptick in consumer sentiment CRUDE OIL traded lower.
Technically, while this market may be slightly oversold CRUDE OIL is in a SUPER-TREND LOWER. See daily chart below.
WE ARE BUYING PUT SPREADS LOOKING FOR LOWER PRICES IN CRUDE OIL!
OPTIONS PLAY
MARCH CRUDE-73.27/BARRELL
OPTION EXPIRY-FEB 17TH
CONTRACT SIZE-1,000 BARRELLS
LEVERAGE FACTOR $1=$1,000
BUY THE MARCH CRUDE 64-59 PUT SPREADS
We also buy in a 3 to 1 ratio an outright CALL in case the market makes a MAJOR move against us.
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Then please visit the McKinney Trading website today at http://mckinneytrading.blogspot.com for more news, analysis, and trade recommendations.
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