RSSIs this Commodity Too Cheap?
By Matthew Bradbard | September 24, 2008 | 1:59 PM | 0 Comments
What commodity market is currently priced at 80% below its record high when other commodities have made new record highs? We expect traders that are shopping for value to continue accumulating this commodity and we are suggesting our clients to buy 1-2 years time and sit on this commodity for an appreciable move. The margins are still reasonable and investors can buy at the money or just out of the money call options for just over $1,000. There are very few commodities that offer this risk/reward dynamic. We generally do not like to buy and hold, but for all you stubborn stock investors this trade could fit the bill.
click chart to enlarge
Can you guess which commodity this is? Comment on this article, or email me if you think you know.
MB Wealth Corp. is not responsible and does not endorse anything out side of the content of this article authored by Matthew Bradbard; President of MB Wealth.
For specific strategies in this commodity or for other plays we are making for clients, contact us here or telephone at (888) 920-9997 / 954-929-9997.
For the most part investors reading this analysis want to be more hands on, however we suggest taking a look at our new managed futures section and consider diversifying further with CTA’s with proven track records.
Risk Disclosure: The risk of loss in trading commodity futures and options can be substantial. Before trading MB Wealth recommends that you should carefully consider your financial position to determine if commodity trading is appropriate for you. All funds committed should be purely risk capital. Past performance is no guarantee of future trading results. There are no guarantees of market outcome stated, everything stated above are our opinions. Calculations of profit and loss have not factored in commissions and fees.
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