Options Play: Buying Sugar Puts

[mckinneytrading]

Buying SUGAR #11 Puts On The NYBOT Should Be A Sweet Deal.

MY ANALYSIS

Fundamentally, improving supply situations, macro economic doubts, and fund selling have lead to the recent slide in the SUGAR market. I expect this to continue and look for lower SUGAR prices in the coming days and weeks.

Technically, although it is oversold we see this market holding a SUPER-TREND lower indicated by the MA's.

BUYING OPTIONS=STAYING POWER




OPTIONS PLAY

MAY SUGAR-$.23/LB

OPTION EXPIRY-APRIL 15TH

CONTRACT SIZE-112,000 LBS

LEVERAGE FACTOR-$.01=$1120

BUY MAY PUTS

We also buy in a 3 to1 ratio an outright CALL in case the market makes a MAJOR move against us.

FOR A FREE CME REPORT ON 25 PROVEN OPTION STRATEGIES CLICK HERE: 25 proven options-on-futures strategies

WE ARE ALSO BUYING OPTIONS IN U.S. 30 YEAR TREASURY BONDS, GOLD, GRAINS, SOFTS, and INDECES.

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

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