TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.
OPTIONS PLAY: Corn Futures Could Be Forming A Bull Flag
This article will talk about a technical formation on the chart known as a bull flag.
MY ANALYSIS
Fundamentally, in my opinion Corn Futures seemed to be supported by speculation on where yields will come in and a weaker U.S. Dollar Index.
Technically, Although this market may be over bought I see Corn Futures in an upward SUPER-TREND as the market holds above both the 9 day and the 20 day Moving Averages. Also notice the pull back over the last three days could be the flag portion of the bull flag, if the market were to rally to make new highs in the next couple of days. See daily chart below. For more charts, studies , and commentary go to: http://markethead.com/2.0/free_trial.asp?rid=McKinney
OPTIONS PLAY
Buy December Corn Calls.
We also buy in a 3 to 1 ratio a put in case the market makes a MAJOR move against us.
FOR OUR FREE REPORT ON OPTIONS ON BEANS FOR PEOPLE WHO DON’T KNOW BEANS ABOUT OPTIONS: http://www.zaner.com/3.0/mmck2.asp
WE ARE ALSO FOCUSING ON COMMODITY OPTIONS IN U.S. 30 YEAR TREASURY BONDS, GOLD, SILVER, OIL, GRAINS, SOFTS, and INDICES.
FREE QUOTE- “If you wait to do everything until you’re sure it’s right, you’ll probably never do much of anything.” -Win Borden
Before you place any of these trades in your account you should call or email me with your phone number for a detailed explanation of the strategies and the risks involved at 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 DIRECTION
