Crude oil price forecast

Discussion in 'Energy Futures' started by InvestVision, Oct 15, 2008.

  1. 10/15/08 1 AM oil at $78.50

    buy oopsite side options if it goes $6 either up or down

    If goes to 85 , buy 78 calls
    if goes to 73 buy 78 puts
    in both cases options will be cheaper , this is Leg 1

    Leg 2 : use future to go opposite direction of Leg 1 with future contract , this Leg 2 will be sold for incremental profit keeping Leg 1 option as insurance ..