MY ANALYSIS
Fundamentally, I believe SOYBEAN prices will continue to fall for 3 basic reasons:
1. Record Crop Estimates In South America
2. Impending Pre-Harvest Lull In South America
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
http://media.barchart.com/cm/article...9d10724d68.png
OPTIONS PLAY:
MAY SOYBEANS-$9.14/BUSHEL
OPTION EXPIRY-APRIL 23RD
CONTRACT SIZE-5,000 BUSHELS
LEVERAGE FACTOR-$.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.
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.
Fundamentally, I believe SOYBEAN prices will continue to fall for 3 basic reasons:
1. Record Crop Estimates In South America
2. Impending Pre-Harvest Lull In South America
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
http://media.barchart.com/cm/article...9d10724d68.png
OPTIONS PLAY:
MAY SOYBEANS-$9.14/BUSHEL
OPTION EXPIRY-APRIL 23RD
CONTRACT SIZE-5,000 BUSHELS
LEVERAGE FACTOR-$.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.
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.
