Opportunity in Soybeans

Published on: 12:18PM May 22, 2020

Our new Ag Alerts program signaled a limited risk option trade for soybeans today!

If you're interested in receiving Ag Alerts going forward, please email [email protected]!

 

Trade Alert:

Buy 3 September 920-940 vertical call spreads, paying 2 cents each for a total price of 6 cents.

Liquidation Instructions:

Sell 1 September 920-940 vertical call spread at 6 cents GTC, letting the other two ride.

 

Logic Behind the Trade

We like buying this spread at 10% of its max value. September options still have a lot of time, 92 days until expiration, We need approximately 40¢ in price to liquidate 1/3 of the trade and cover the cost of the whole package and let the rest ride if the situation still looks bullish. This is a low cost, high risk/reward situation. Many of our other strategies will be centered around chopping within a range, this is a good hedge for a breakout to the upside outside of the range.

What is Ag Alerts?

1-This is a limited risk option strategy that focuses on the agricultural markets

2-There are roughly 3-4 new limited risk trade alerts each month

3-You can place the trades on your own or have our team place them as soon as the alerts are issued!

 

If you're interested in receiving Ag Alerts going forward, please email [email protected]!

BlueLineFutures.com

 

Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

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