9-28-10 March Corn appears to be showing signs of exhaustion technically speaking. We are getting more aggressive and suggest adding on a March Bear Put Spread with Naked Leg. Buy the March 500/450 bear put spread and sell the March 600 call (the naked leg). The trade is currently being quoted as a debit of $150 before commissions. This would be your risk intrinsically with the market above 500 but below 600; above 600 there is unlimited risk. The profit potential, based upon intrinsic value, would be limited to $2,500 before deducting your premium and transaction costs. We also like the March “plain vanilla” 380 put for under $200!
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