Sunday, June 12, 2011

Neutral Nick update up over 18 million; not bad on 300,000 bushels

Neutral Nick updated his position on a day when he probably should have simply exited everything with a rather nice 18 million or so gain.

Mr Neutral did do something a little different today as he took some off the top and took a little risk away; but still if he would have simply closed his positions he wouldn't have had any risk going to the bank and cashing in.  The reason why Nick didn't do the right thing is because it wasn't in his plan; perhaps next week or in the next few days he will change and get out like he should?

Today's trades where as follows in soybeans he bought 190 of the 14.00 July soybean calls; which got him back to around 100k bushels of sold in delta terms. 

For corn he sold 2000 of the 7.80 puts, sold 670 of the 8.00 calls, and purchased 1750 of the 7.50 calls.  Once again all July; and if one recalls his marketing plan will end in 12 days one way or another as that is when all of the July options expire.

For wheat he used July CBOT options and sold 1310 of the 7.80 calls, purchased 1000 of the 7.50 puts, purchased 500 of the 7.30 puts and purchased 550 of the 8.00 calls.

Below is a consolidated view of all of his trades as well as profit projected and present.

A couple things that really stick out are the amount of trades needed or done for corn and wheat versus soybeans.  In the beans he has had to trade far less quanity and he is up more.

Keep in mind that futures and options are risky and not suitable for all and past performance doesn't mean similiar future results nothing in this blog is a trading reccomendation.

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