SOYBEANS Move Lower As We Head Into USDA Report
MY ANALYSIS
Fundamentally, some Brazilian officials came in with a larger than expected supply number and a new record high.
Technically, this market is in a long-term DOWNWARD trend indicated by the 50 day MA.
BUYING OPTIONS=STAYING POWER
OPTIONS PLAY:
MAY SOYBEANS-$9.41/BUSHEL
OPTION EXPIRY-APRIL 23RD
CONTRACT SIZE-5,000 BUSHELS
LEVERAGE FACTOR-$.10=$500
BUY MAY PUTS
We also buy in a 3 to 1 ratio an outright CALL in case the market makes a MAJOR move against us.
FOR 25 PROVEN OPTION STRATEGIES CLICK HERE:
http://www.zaner.com/3.0/mmck7.asp
WE ARE ALSO BUYING OPTIONS IN U.S. 30 YEAR TREASURY BONDS, SILVER, GOLD, SOFTS, and OIL.
Call or email me with your phone number for a detailed explanation of the strategies 312-277-0115 or
mmckinney@zaner.com.
Futures, options and forex trading is speculative in nature and involves substantial risk of loss. All known news and events have already been factored into the price of the underlying commodities discussed. The limited risk characteristic of options refers to long options only; and refers to the amount of the loss, which is defined as premium paid on the option(s) plus commissions.
FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE-MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION'S STRIKE PRICE COMPARES TO THE UNDERLYING FUTURE'S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT, OPTION PRICES MAY ONLY MOVE A FRACTION OF THE PRICE MOVE IN THE UNDERLYING FUTURES. IN SOME CASES, THE OPTION MAY NOT MOVE AT ALL OR EVEN MOVE IN THE OPPOSITE
Linear Mode
