Futures Commentary and Analysis

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Way to Trade Thru Options Plays
Leslie Burton - IF - Tue Nov 14, 3:01PM CST

RBOB (January 2018)

Buy 1 GRBF8 155.00 Put for 0.0064 or better. The total risk is $268.80 plus commissions and fees.



Bullish supplies from the Middle East may pressure the energy products. Seasonally, the RBOB Gasoline may be under additional decreased demands. OPEC did raise their 2018 demand projections to 1.51 million barrels per day. The IEA decreased their demand projections for this year and next year globally. Saudi production has been up last month adding to concerns that the OPEC production cuts may not continue. The Oil Producers Agreement may be extended at the OPEC meeting at the end of this month.
We monitor the options position and will attempt to double the premium on the trade.


The minimum tick is 0.0001 equivalent to $4.20.


To close the position!
Sell 1 GRBF8 155.00 Put for 1.0128 or better. The total dollar value would then be $537.60 less commissions and fees.


The Expiration of the option is December 26th, 2018


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This is a long shot as most options expire worthless. The odds favor the writer or granter of the option. The reason to buy options typically may be for the prescribed risk factor except in the case that an option goes into the money and is exercised. It would then become a futures position requiring margin.


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Daniels Trading
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Chicago, IL 60606

www.danielstrading.com

THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.
THIS MATERIAL HAS BEEN PREPARED BY A DANIELS TRADING BROKER WHO PROVIDES RESEARCH MARKET COMMENTARY AND TRADE RECOMMENDATIONS AS PART OF HIS OR HER SOLICITATION FOR ACCOUNTS AND SOLICITATION FOR TRADES; HOWEVER, DANIELS TRADING DOES NOT MAINTAIN A RESEARCH DEPARTMENT AS DEFINED IN CFTC RULE 1.71. DANIELS TRADING, ITS PRINCIPALS, BROKERS AND EMPLOYEES MAY TRADE IN DERIVATIVES FOR THEIR OWN ACCOUNTS OR FOR THE ACCOUNTS OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS RISK TOLERANCE, MARGIN REQUIREMENTS, TRADING OBJECTIVES, SHORT TERM VS. LONG TERM STRATEGIES, TECHNICAL VS. FUNDAMENTAL MARKET ANALYSIS, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE INITIATION OR LIQUIDATION OF POSITIONS THAT ARE DIFFERENT FROM OR CONTRARY TO THE OPINIONS AND RECOMMENDATIONS CONTAINED THEREIN.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.
YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD READ THE "RISK DISCLOSURE" ACCESSED BY THE LINK BELOW. DANIELS TRADING IS NOT AFFILIATED WITH NOR DOES IT ENDORSE ANY TRADING SYSTEM, NEWSLETTER OR OTHER SIMILAR SERVICE. DANIELS TRADING DOES NOT GUARANTEE OR VERIFY ANY PERFORMANCE CLAIMS MADE BY SUCH SYSTEMS OR SERVICES.
WHEN INVESTING IN THE PURCHASING OF OPTIONS, YOU MAY LOSE ALL OF THE MONEY YOU INVESTED. WHEN SELLING OPTIONS, YOU MAY LOSE MORE THAN THE FUNDS YOU INVESTED.
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