Trade Crude Now by John L. Momsen
Donít brush aside a straightforward futures trade just because you think itís too risky. Try combining seasonals with options ó you might be pleasantly surprised.
A simple option spread combined with a seasonal trade can not only increase the potential for a profit but also improve the risk/reward ratio of your trade. It can also open up the possibility of participating in trades you might have otherwise considered too high-risk for your trading account.
In the February 2000 STOCKS & COMMODITIES, I described a simple method of transforming a good seasonal trade into a great seasonal trade using a three-channel breakout method. You can also use various options strategies in place of straight futures positions. In fact, when the risk/reward ratio of one of my 41 seasonal trades is not to my liking, options may be preferable.