OPTIONS PLAY: SOYBEANS Ready For Next Wave Lower

[mckinneytrading]

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.

Click Here to See Chart

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.


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!

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.