Oil Prices continue to rise. Eventually the spill over effect will spread across to other sectors like the airlines and transportaion. Retailers will eventually pass this increase unto consumers in the form of higher prices. The summer also seems to show no relieve for this increase in higher prices. Let's look at a couple of plays today. We would like to take a look and see what impact higher prices will have on the market today.
Call Credit Spreads
Conservative/ Bearish Credit Spread
Fedex FDX: $83.96
INITIAL "NET-CREDIT" TARGET = $0.25-$0.30
Conservative/ Bullish Put Spread
Nikke NKE: $86.24
INITIAL "NET-CREDIT" TARGET = $0.35-$0.40