OPTINS PLAY: Buying SOYBEAN Puts With Calls For Protection
This Article Focuses On Buying SOYBEAN Puts In A Down Trend.
MY ANALYSIS
Fundamentally, I believe SOYBEAN prices will continue to fall for 3 basic reasons:
1. Possible Record Crop In Argentina
2. Ideal Weather In Brazil
3. Overall Bearish Tilt In Commodities
Technically, we see a strong DOWNWARD trend indicated by 3 MA's. See daily chart below.
BUYING OPTIONS=STAYING POWER
OPTIONS PLAY:
MAY SOYBEANS-$9.24/BUSHEL
OPTION EXPIRY-APRIL 23RD
CONTRACT SIZE-5,000 BUSHELS
LEVERAGE FACTOR-$.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 OUR REPORT ON OPTIONS ON BEANS FOR PEOPLE WHO DONT KNOW BEANS ABOUT OPTIONS CLICK HERE: http://www.zaner.com/3.0/mmck2.asp
WE ARE ALSO BUYING OPTIONS IN U.S. 30 YEAR TREASURY BONDS, SILVER, GOLD, SOFTS, and OIL.
THE BEST SERVICE I CAN OFFER YOU AS MY CLIENT IS WHEN TO GET IN AND WHEN TO GET OUT!
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
