Wednesday, June 1, 2011

MWC Marketing Hour Round Table - Mock Trades

Today we had another session of mock trading during our Marketing Hour Round Table; which is held each week on Wed's at 3:30 in Onida at the Midwest Cooperatives office.

In today's trades the following happened

First Jordan added a trade to help his overall position; he sold his two long KC wheat and then he added 4 short 7.30 corn calls.  He reason behind this trade was simply to put all of his open positions into a group or basically he added a portfolio trade that after done created a profit and loss graph that when the options expire looks like a strangle.  Basically a flat looking graph.

Jordan's trades that are included in his "position  book" basically all of the trades combined other then his old trades from 3-4 weeks ago include the following

short 13.80 bean call and put
short 4 KWN 950 Puts
short 3 KWN 950 Calls
short 1 CN 720 call
short 1 CN 770 put
short 4 CN 730 calls
long  2 KWN at 938
short 2 KWN at 8.91

below is a look at his current and projected P L graph; it shows that he is behind but he does have a chance to come out a head if things can be rather quiet over the next couple weeks as seen below

Jeremey has something similar going; first off he did get stopped out of his short July wheat trade from last week; with a 14 cent loss.

He left all of his option trades unchanged and you can see the portfolio P L Graph below; he is up a little bit presently and probably should have put some sort of stop in place; so i guess we will see if that failure costs him this week

His option trades are short 3 8.20 calls (all are July CBOT)
Short 1 9.00 call
Short 4 7.50 puts
short 1 more 9.00 call
short 1 more 7.00 put
not included in this portfolio are his open Sept Strangle via a short 7.00 put and short 10.00 call.

Our rules are simply that we do 1 trade a week and can follow up as many open trades as deemed warranted; so the above shows my open trades.

My trade for this week was a little different. I decided to short Dec corn; risk and reverse at 6.90 and then for an objective I have another reverse play at 6.50.  Let's how i don't end up totally backwards on this trade; as I entered it at the close at 6.79  basis Dec corn.

Kevin chose to leave his open trades open so see last week's spread sheet for info on those.  For this week's trade he put in an order to sell MPLS July at 10.20; risking to 10.55 on a closing  basis with an objective of 9.40.

His open trades are an order to go short July beans and long dec corn; and he is long CBOT July wheat versus short KC July wheat.

Dan the man placed an order to buy KWN at 8.77 with an objective of 9.44 risking to 8.60.  His open trades include being short Dec corn with a stop at 6.85 on a close basis with an objective of 6.37 on a close; he is leaving that trade alone.  His other trade he entered long Nov beans; he moved a stop to 13.64 and has an objective of 13.90.

The one thing that I generically like about all the trades is the fact that everyone has some sort of cross hedge going on and that is just good risk management as no one will always out guess the markets.

As example Dan is short corn, but long beans and trying to get long wheat; while the portfolio trades that Jordan and myself have show a rather neutral bias and even Kevin's trades are rather diversified as he is in 5 different markets.

No comments:

Post a Comment