This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Options, published on Wednesday, January 18, 2017.
There is a trading opportunity in the Cocoa market on a Trend Line Formation breakout. For those that don’t prefer trading future contracts because of stop loss orders and/or margin requirements, here is an option contract recommendation alternative. Selecting a strike price within five of being in-the-money and below the initial target price of 2,600, a 50% Fibonacci Retracement of the six month sell-off. Technical indicators have hooked bullish. This market was discussed in this week’s Beyond the “Spotlight.”
Purchase the May 2017 2400 call for 45 points or $450, GTC
Risk: Maximum Risk: $450, not including commissions & fees.
Reward: Maximum Profit: Unlimited, not including commissions and fees.
Expiration: April 7, 2017 (79 days)
May 2017 Cocoa Chart
Contact your Daniels Trading broker by phone or email to place this trade.
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
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.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
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