Wednesday, June 1, 2011

Neutral Nick Update June 1st; Russia smacking our wheat price put's Nick .....

The news of Russia back opening exports really has hurt our Mock Marketing Character Neutral Nick hard; as he found himself very out of whack on wheat today.  His corn and bean situation wasn't that bad nor out of whack with his goal.

Here are his trades to get back to a goal of staying delta short 100,000 bushels each of corn, soybeans, and CBOT wheat. 

For corn he sold 107 of the 7.50 puts; once again July options...........which reminds me that he is down to only 3 weeks before all of his options expire.

In soybeans he sold 400 of the 13.80 puts.

In wheat he purchased 300 of the 7.00 puts, sold 2500 of the 8.00 calls, purchased 2500 of the 8.50 calls, and sold 5,000 of the 7.60 puts.

Ok I admit it; his plan sucks as he simply gets over leveraged; the good thing is that even though his plan has some many flaws hence so much that he has learned he is up over 5.0 million dollar any way you cut it and now has a chance to end up nearly $40 million.  While it is unreal that he would have had enough margin money to complete this plan; it looks good if he can find a bank with an unlimited account. 

Keep in mind that futures and options are not suitable for many and past performance doesn't mean similiar future results; bottom line futures and options are very risky.







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