This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Spreads, published on Wednesday, May 11, 2016.
There is a bear futures spread trade opportunity in the Crude Oil market on a trend line breakout today. Establishing a bearish position where a front month contract is sold and a deferred month contract is purchased. Anticipating the spread to widen negatively. Setting up a futures spread will potentially reduce the risk and volatility, as well as reducing the margin requirement, in this energy market.
Sell the August 2016 / Buy the January 2017 Crude Oil spread at -1.65 points using a limit order, GTC.
Initial Margin = $544.50 Maintenance Margin = $495
Stop loss: Stop loss is -1.05, above the twelve month contract high (3/18/16), GTC. (Risk: $600)
Target: Target is -3.00, above the twelve month contract low (2/11/16), GTC. (Profit: $1,350)
Crude Oil Spread Chart
Contact your Daniels Trading broker by phone or email to place this trade.
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