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: Wheat Could Possibly Be Topping
After a substantial run up and then a period of sideways, range bound trading Wheat could possibly be ready for a correction.
MY ANALYSIS
Fundamentally, with WHEAT FUTURES trading sideways in the face of a lower U.S. DOLLAR INDEX maybe the market is ready for a big correction should the dollar bounce?
Technically, as markets typically trend then consolidate and trend then consolidate, it could be that this consolidation mode is coming to an end and WHEAT FUTURES could be in line for a LOWER TREND. 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 Wheat Puts.
We also buy in a 3 to 1 ratio a call 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- “Whether you think you can or think you can’t, either way you’re probably right” -Henry Ford
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
