Coppers reaction to the announcement of tariffs on imported goods into the US hit the metal hard, breaking down from the July 2018 high of 3.3815 to the August 2018 low of 2.7375. As the US China and EU sort out trade issues and there is more clarity on tariffs Copper can potentially rally to 3.00, in my opinion. Consider buying May Call options on Copper last at 2.903 on the May Futures contract as of this writing.
The May 295/300 call spread cost .015 = $375 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
For a contrarian trade or to protect risks to the downside consider the May 275 Put cost .025 = $625 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
May options expire in 62 days 4/25/19 and trade on the May Futures contract.
To discuss any strategies feel free to call 888-391-7894 or email me peterori@walshtrading.com
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