Matthew Bradbard

Today in Commodities: Suspension of Disbelief

Rarely, if I want to be delta neautral or non-directional I may trade a futures contract against options. Depending on your time frame you caould tarde different months against one another as well. A bullish cattle trade we have clients in now: sold(3) October 84 puts and bought (1) 90 call for even money.


On Aug 20 08:18 AM User 189523 wrote:

> Matthew,
> Do you ever advise non-directional option strategies. For example
> in October Live Cattle, Long the 92 call, short the 90 call, short
> the 88 put, and long the 86 put.
> Thank you.
> MZ

Today in Commodities: Suspension of Disbelief

We hit our downside objective in oil today and would suggest using the recent pullback to start scaling into longs. What we did for clients today was expensive but we think it should pay off in the coming months. We bought (3) December $75/85 bull call spreads and at the same time bought (1) October $60 put. On a further sell -off we will liquidate the put at a profit and have the option to buy back the $85 calls that were sold. If the recent correction is all we get and prices rally from here we will cut losses on the put and look to capitalize on the call spreads.

Direct quote from Monday's post. Take your foot out of your mouthe.
On Aug 19 04:40 PM BPYHO wrote:

> You told us so about oil!!? Gimme a break! EVERYONE believes oil
> is a good LONG TERM PLAY! You have said the past few sessions that
> you were betting on oil going down to 65$ and possibly further. I
> enjoy your articles, but come on man!