Market Plunge Presents Opportunities

Fundamentals may have taken a back seat for several days as traders attempt to adjust postions amidst a plunge in both commodity and equity markets. Yesterday saw crude oil down more than 35% in only two months time while the dollar seemed to have no support as well. Lost in the economic turmoil was Mend's openly declared "oil war" in Nigeria as a Royal Dutch Shell installation was attacked.

The current drop in commodity markets provides consumers with an excellent opportunity to lock in fuel prices more than 35% off the all-time highs. The WTI Q4 2008 $100/130 call spread can be owned for only $3.00 per month using Average Price Options. This call spread provides a $27,000 payout per month if the market rallies back to $130 with only $3,000 of total risk. The call spread can be made costless by selling the $88 put strip.

Singapore, 08:05