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NEW APRIL CPTI POSITION

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-- Porkbellies 'R Us

Many thanks to Mark D., a long time CPTI student and recent seminar attendee, who has uncovered an interesting play. It's conservative with a nice big range (the kind we like), but it's on an underlying we've never used before -- the CME.

It's the Chicago Mercantile Exchange -- you know, the exchange where people trade futures on grains, gasoline and pork bellies.

So, for a , lets:
Sell 10 CME April 230 calls
Buy 10 CME April 240 calls
Credit of about $.60 ($600)

Sell 10 CME April 165 puts
Buy 10 CME April 155 puts
Credit of about $.60 ($600)

Total net credit and profit potential of about $1.20 ($1,200). Our maximum profit range is 165 to 230. Maintenance is $10,000. Remember, look to come close to the total net credit. It could be $.50 plus $.70 etc. The above numbers aren't etched in stone. I'm figuring about a nickel negotiation on each bid/ask spread.

Good luck and adjust the number of contracts to your account size.

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