OPTIONS PLAY: SOYBEANS Could Trade Much Lower

[mckinneytrading]

As The South American Crop Comes Off It Looks As Though There Could Be Over Supply.

MY ANALYSIS

Fundamentally, SOYBEAN prices could move lower as demand shifts from U.S. SOYBEANS to South American SOYBEANS.

Technically, we see a DOWNWARD trend indicated by the 50 Day MA pointing down. Also the market is trading at the top of the range indicated by the BB. Notice the HEAVY VOLUME coming into the trade. See charts below.

BUYING OPTIONS=STAYING POWER






OPTIONS PLAY:

MAY SOYBEANS-$9.43/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 25 PROVEN OPTION STRATEGIES CLICK HERE: 25 proven options-on-futures strategies

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

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