Neutral Nick Update after 40 cent break in Wheat Market on 2-15-2011

With crazy markets once again today; our grains managed a correction with wheat down 34 in KC, CBOT wheat was donw 32, MPLS was off 38, Soybeans have had 4 days in a row of double digit losses as it was down 35, old corp corn was down 5 which was a big bounce off of the lows, and new crop corn was down 16.

A cancellation of some old crop soybeans along with a technical sell off/profit taking was the big story out today.  Fundamentally I don't view much as changed in a week to justifiy some of the recent moves; but that is why the markets are the markets.

Beside the big move we seen today; we also got one day closer before March Options expire.  With this our marketing character Neutral Nick decided to try and square up some of his March positions and re-adjust back to a delta = of about 100,000 bushels sold.

So to help get himself square and stay in line with his current thoughts of always collecting net premium never paying out and staying close to 100,000 bushels sold Nick entered the following trades today.

The colum on the far right is the net dollar cost before commission; if the number is a positive that is what he had added back to his hedge ago because he sold an option; if it is an negative that is what came out of his balance because he bought or in some cases below offset and option.

As you can see overall he added more chance (and risk) to his bottom line potential if we are able to stay inside of the area that he sold above and or below.

As you will see he is setting the stages for plenty of phone calss from the bank for margin; but also to have to follow up quickly as a big move without follow could quickly hurt his position.

LONG	5.00	CH660C	CH1	18-Feb-2011	15-Feb-2011	31.375	($7,844)
LONG	4.00	CH680C	CH1	18-Feb-2011	15-Feb-2011	14.750	($2,950)
SHORT	20.00	CK650P	CK1	21-Apr-2011	15-Feb-2011	20.250	$20,250
SHORT	41.00	CK750C	CK1	21-Apr-2011	15-Feb-2011	24.625	$50,481
							$59,937
LONG	4.00	SH1300C	SH1	18-Feb-2011	15-Feb-2011	68.875	($13,775)
LONG	5.00	SH1360P	SH1	18-Feb-2011	15-Feb-2011	8.750	($2,187)
SHORT	5.00	SH1440P	SH1	18-Feb-2011	15-Feb-2011	72.750	$18,187
SHORT	20.00	SK1400C	SK1	21-Apr-2011	15-Feb-2011	44.875	$44,875
SHORT	4.00	SN1500C	SN1	24-Jun-2011	15-Feb-2011	47.000	$9,400
SHORT	40.00	SN1600C	SN1	24-Jun-2011	15-Feb-2011	28.250	$56,500
							$113,000
SHORT	7.00	WH830P	WH1	18-Feb-2011	15-Feb-2011	6.750	$2,362
SHORT	8.00	WH850P	WH1	18-Feb-2011	15-Feb-2011	17.125	$6,850
SHORT	15.00	WN850P	WN1	24-Jun-2011	15-Feb-2011	56.375	$42,281
							$51,494

Below is is present position book;
the trades from today are in yellow.  Depending on where we go from here in the next couple of days he should be very close to out of March options.  He didn't offset all of them but he did offset most of them and will look to do the rest on Friday.

Long	# of	Option	Futures	My Trade		Futures Price	Option Price		Position Equivalent		Profits (Losses)	Days to Expiration	Expiration
or Short	Contracts	Symbol	Reference	Date	Price	Last	Last	Delta	Delta (bu)	Gamma (bu)	Actual	Actual	Date
SHORT	5.00	CH660C	CH1	7-Jan-2011	15.375	690.500	31.375	(0.91)	(22,691)	(145)	($4,000)	3	18-Feb-2011
LONG	5.00	CH660C	CH1	15-Feb-2011	31.375	690.500	31.375	0.91	22,691	145	$0	3	18-Feb-2011
LONG	6.00	CH660P	CH1	8-Feb-2011	8.250	690.500	0.875	(0.08)	(2,490)	195	($2,213)	3	18-Feb-2011
SHORT	6.00	CH680C	CH1	29-Dec-2010	20.000	690.500	14.750	(0.69)	(20,821)	(482)	$1,575	3	18-Feb-2011
SHORT	2.00	CH680C	CH1	5-Jan-2011	18.500	690.500	14.750	(0.69)	(6,940)	(161)	$375	3	18-Feb-2011
LONG	4.00	CH680C	CH1	8-Feb-2011	11.125	690.500	14.750	0.69	13,880	321	$725	3	18-Feb-2011
LONG	4.00	CH680C	CH1	15-Feb-2011	14.750	690.500	14.750	0.69	13,880	321	$0	3	18-Feb-2011
SHORT	35.00	CH700C	CH1	23-Dec-2010	16.500	690.500	4.375	(0.33)	(57,528)	(3,101)	$21,219	3	18-Feb-2011
LONG	20.00	CH700C	CH1	2-Feb-2011	7.375	690.500	4.375	0.33	32,873	1,772	($3,000)	3	18-Feb-2011
LONG	19.00	CH700C	CH1	14-Feb-2011	6.125	690.500	4.375	0.33	31,229	1,683	($1,663)	3	18-Feb-2011
SHORT	20.00	CK650P	CK1	2-Feb-2011	28.875	701.000	20.250	0.28	28,192	(315)	$8,625	65	21-Apr-2011
SHORT	20.00	CK650P	CK1	15-Feb-2011	20.250	701.000	20.250	0.28	28,192	(315)	$0	65	21-Apr-2011
SHORT	5.00	CK700P	CK1	14-Feb-2011	36.500	701.000	41.500	0.46	11,598	(93)	($1,250)	65	21-Apr-2011
SHORT	41.00	CK750C	CK1	15-Feb-2011	24.625	701.000	24.625	(0.36)	(73,684)	(700)	$0	65	21-Apr-2011
SHORT	2.00	CN500P	CN1	7-Jan-2011	20.875	704.250	2.125	0.04	352	(5)	$1,875	129	24-Jun-2011
SHORT	30.00	CN550P	CN1	23-Dec-2010	37.250	704.250	8.000	0.10	15,286	(176)	$43,875	129	24-Jun-2011
SHORT	22.00	CN630P	CN1	21-Jan-2011	47.875	704.250	27.125	0.26	28,941	(236)	$22,825	129	24-Jun-2011
SHORT	5.00	CN630P	CN1	8-Feb-2011	31.000	704.250	27.125	0.26	6,578	(54)	$969	129	24-Jun-2011
SHORT	55.00	CN800C	CN1	23-Dec-2010	30.750	704.250	30.500	(0.33)	(89,459)	(613)	$688	129	24-Jun-2011
SHORT	10.00	CN800C	CN1	26-Jan-2011	28.000	704.250	30.500	(0.33)	(16,265)	(112)	($1,250)	129	24-Jun-2011
SHORT	27.00	CN800C	CN1	28-Jan-2011	24.000	704.250	30.500	(0.33)	(43,916)	(301)	($8,775)	129	24-Jun-2011
	343.00							(0.06)	(100,102)	(2,371)	$80,600
SHORT	4.00	SH1300C	SH1	7-Jan-2011	93.875	1368.000	68.875	(0.93)	(18,657)	(36)	$5,000	3	18-Feb-2011
LONG	4.00	SH1300C	SH1	15-Feb-2011	68.875	1368.000	68.875	0.93	18,657	36	$0	3	18-Feb-2011
SHORT	5.00	SH1300P	SH1	29-Dec-2010	34.500	1368.000	0.875	0.05	1,221	(58)	$8,406	3	18-Feb-2011
SHORT	15.00	SH1300P	SH1	12-Jan-2011	13.125	1368.000	0.875	0.05	3,664	(175)	$9,188	3	18-Feb-2011
SHORT	5.00	SH1360P	SH1	12-Jan-2011	30.500	1368.000	8.750	0.39	9,837	(308)	$5,438	3	18-Feb-2011
LONG	5.00	SH1360P	SH1	15-Feb-2011	8.750	1368.000	8.750	(0.39)	(9,837)	308	$0	3	18-Feb-2011
SHORT	5.00	SH1380P	SH1	8-Feb-2011	4.125	1368.000	20.125	0.64	15,898	(284)	($4,000)	3	18-Feb-2011
LONG	5.00	SH1440P	SH1	8-Feb-2011	24.000	1368.000	72.750	(0.93)	(23,321)	45	$12,188	3	18-Feb-2011
SHORT	5.00	SH1440P	SH1	15-Feb-2011	72.750	1368.000	72.750	0.93	23,321	(45)	$0	3	18-Feb-2011
SHORT	2.00	SH1450C	SH1	5-Jan-2011	43.500	1368.000	0.500	(0.03)	(308)	(17)	$4,300	3	18-Feb-2011
LONG	20.00	SH1460C	SH1	2-Feb-2011	20.750	1368.000	0.375	0.02	2,294	126	($20,375)	3	18-Feb-2011
SHORT	20.00	SK1400C	SK1	15-Feb-2011	44.875	1381.250	44.875	(0.46)	(46,199)	(295)	$0	65	21-Apr-2011
SHORT	12.00	SK1400P	SK1	2-Feb-2011	42.500	1381.250	63.625	0.53	31,995	(176)	($12,675)	65	21-Apr-2011
SHORT	50.00	SN1200P	SN1	23-Dec-2010	42.500	1388.500	16.125	0.14	35,757	(273)	$65,938	129	24-Jun-2011
SHORT	15.00	SN1300P	SN1	26-Jan-2011	48.500	1388.500	41.250	0.30	22,279	(128)	$5,438	129	24-Jun-2011
SHORT	10.00	SN1360P	SN1	28-Jan-2011	67.250	1388.500	67.000	0.41	20,578	(94)	$125	129	24-Jun-2011
SHORT	2.00	SN1400P	SN1	21-Jan-2011	88.875	1388.500	89.000	0.49	4,874	(19)	($13)	129	24-Jun-2011
SHORT	6.00	SN1400P	SN1	8-Feb-2011	63.750	1388.500	89.000	0.49	14,622	(57)	($7,575)	129	24-Jun-2011
SHORT	40.00	SN1500C	SN1	23-Dec-2010	82.500	1388.500	47.000	(0.34)	(68,377)	(327)	$71,000	129	24-Jun-2011
SHORT	25.00	SN1500C	SN1	26-Jan-2011	67.250	1388.500	47.000	(0.34)	(42,736)	(204)	$25,313	129	24-Jun-2011
SHORT	8.00	SN1500C	SN1	14-Feb-2011	56.625	1388.500	47.000	(0.34)	(13,675)	(65)	$3,850	129	24-Jun-2011
SHORT	4.00	SN1500C	SN1	15-Feb-2011	47.000	1388.500	47.000	(0.34)	(6,838)	(33)	$0	129	24-Jun-2011
SHORT	30.00	SN1600C	SN1	23-Dec-2010	62.000	1388.500	28.250	(0.22)	(33,661)	(190)	$50,625	129	24-Jun-2011
SHORT	40.00	SN1600C	SN1	15-Feb-2011	28.250	1388.500	28.250	(0.22)	(44,881)	(253)	$0	129	24-Jun-2011
	337.00							(0.06)	(103,492)	(2,522)	$222,169
SHORT	3.00	WH730C	WH1	7-Jan-2011	68.125	840.250	110.375	(0.94)	(14,106)	(2)	($6,338)	3	18-Feb-2011
SHORT	20.00	WH750P	WH1	19-Jan-2011	13.875	840.250	0.125	0.01	901	(58)	$13,750	3	18-Feb-2011
SHORT	2.00	WH770P	WH1	5-Jan-2011	27.375	840.250	0.250	0.02	189	(13)	$2,713	3	18-Feb-2011
SHORT	7.00	WH830P	WH1	15-Feb-2011	6.750	840.250	6.750	0.35	12,264	(458)	$0	3	18-Feb-2011
LONG	15.00	WH850P	WH1	8-Feb-2011	9.875	840.250	17.125	(0.62)	(46,825)	986	$5,438	3	18-Feb-2011
SHORT	8.00	WH850P	WH1	15-Feb-2011	17.125	840.250	17.125	0.62	24,974	(526)	$0	3	18-Feb-2011
LONG	30.00	WH870C	WH1	26-Jan-2011	25.000	840.250	2.625	0.17	25,183	1,282	($33,563)	3	18-Feb-2011
LONG	8.00	WH870C	WH1	2-Feb-2011	23.000	840.250	2.625	0.17	6,716	342	($8,150)	3	18-Feb-2011
LONG	5.00	WH880C	WH1	8-Feb-2011	17.750	840.250	1.500	0.10	2,614	152	($4,063)	3	18-Feb-2011
SHORT	25.00	WN700P	WN1	23-Dec-2010	37.875	900.000	8.875	0.09	11,642	(111)	$36,250	129	24-Jun-2011
SHORT	12.00	WN800P	WN1	21-Jan-2011	58.750	900.000	34.750	0.26	15,449	(97)	$14,400	129	24-Jun-2011
SHORT	10.00	WN800P	WN1	26-Jan-2011	42.500	900.000	34.750	0.26	12,874	(81)	$3,875	129	24-Jun-2011
SHORT	2.00	WN850C	WN1	23-Dec-2010	89.125	900.000	106.250	(0.64)	(6,362)	(18)	($1,713)	129	24-Jun-2011
SHORT	4.00	WN850P	WN1	2-Feb-2011	57.500	900.000	56.375	0.35	7,088	(36)	$225	129	24-Jun-2011
SHORT	12.00	WN850P	WN1	8-Feb-2011	47.500	900.000	56.375	0.35	21,265	(108)	($5,325)	129	24-Jun-2011
SHORT	5.00	WN850P	WN1	14-Feb-2011	45.625	900.000	56.375	0.35	8,860	(45)	($2,688)	129	24-Jun-2011
SHORT	15.00	WN850P	WN1	15-Feb-2011	56.375	900.000	56.375	0.35	26,581	(135)	$0	129	24-Jun-2011
SHORT	10.00	WN900C	WN1	23-Dec-2010	73.500	900.000	83.500	(0.54)	(27,093)	(93)	($5,000)	129	24-Jun-2011
SHORT	2.00	WN900C	WN1	12-Jan-2011	66.625	900.000	83.500	(0.54)	(5,419)	(19)	($1,688)	129	24-Jun-2011
SHORT	60.00	WN1000C	WN1	23-Dec-2010	49.250	900.000	50.750	(0.38)	(112,875)	(512)	($4,500)	129	24-Jun-2011
SHORT	6.00	WN1000C	WN1	14-Feb-2011	63.125	900.000	50.750	(0.38)	(11,287)	(51)	$3,713	129	24-Jun-2011
SHORT	30.00	WN1100C	WN1	26-Jan-2011	39.250	900.000	30.250	(0.25)	(37,549)	(209)	$13,500	129	24-Jun-2011
SHORT	12.00	WN1100C	WN1	28-Jan-2011	31.675	900.000	30.250	(0.25)	(15,019)	(83)	$855	129	24-Jun-2011
	303.00							(0.07)	(99,935)	108	$21,693