Wednesday, January 16, 2013

Mock commodity trades from this week's MWC Marketing Hour Round Table

Below are the mock trades that we placed in this week's MWC Marketing Hour Round Table.

Option Trades

Jordan sold the May 7.80 and 7.50 corn calls.  His risk is to double the premium he received.

Jeremey - purchased 5 of the 7.80 Feb CBOT wheat puts and paid for them via selling 1 of the 8.00 July Wheat calls; basically gives him nearby protection for potentially having a sale very close to the market for new crop.

Futures Trades

Kevin, Jordan, and Dan all sold March corn.  Kevin had a risk of 9 cents, Jordan a risk of 7 cents with an objective of 31 cents, and Dan risked 8 cents with an objective of 16 cents.

Dan also sold 1 KC March wheat risking 10 cents with an objective of 42 cents.

All the futures trades where done basis the close of 1-16-2013.

The other two trades put on where bear spreads in the corn market.  Jeremey sold the March corn and bought the Dec corn; with an order to add 1 more at 1.50 inverse; risking to 1.65 with an objective of 1.00.

While Jordan sold the July corn and bought the Dec corn; risking to 1.60 inverse with an 80 cent profit objective.

As always remember that futures and options are risky and not suitable for many.

1 comment:

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