» Click Here For Archived Market Data

Monday | Thursday | Tuesday | Monday | Thursday

For: Tuesday 05-11-2010

Falling Feeders

The fat cattle remain strong and closed near session and swing highs. The feeder cattle still remain locked in a range. When we take a look at the merged market profile chart we see the market is at near term resistance. We will buy put spreads and sell a call for aggressive traders.

Aggressive traders may opt to use futures. As always please consult your personal broker at Great Pacific Trading Company to see if this trade is suitable for your account.

Trade Recommendation: Buy the August 114-108 put spread for a debit of 150 points on a limit. Risk the premium paid. (>$750 not including commissions and fees), Look to take profits if the market trades to 11150.

Aggressive trade Recommendation: Buy the August 114-108 put spread and sell a 128 call for a total debit of 75 points on a limit. Risk the 200 points on the trade. (>$1000 not including commissions and fees), Look to take profits if the market trades to 11150.