OPTIONS PLAY: SOYBEANS Ready For Next Wave Lower

Soybeans Seem To Be Settling In Just Above $9/Bushel Preparing For Next Wave Lower.

MY ANALYSIS

Fundamentally, I believe SOYBEAN prices will continue to fall for 2 basic reasons:

1. Record Crop Estimates In South America

2. Selling Pressure Across The Board In Commodities

3. Chinese Are Expected To Cancel U.S. Soyeban Orders

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