Wednesday, November 16, 2011

Another Mock Trading Session in our Marketing Hour Round Table at MWC in Onida

Today we held another MWC Marketing Hour Round Table meeting; in which we discussed current issues, looked at various charts, talked a little on basis, and then did some mock trading.

Here is a recap of our mock trading.

First Dan was stopped out of a long KC wheat position for a small profit; as that was the only booked trade that was closed today.  It leaves us with about 75k profit on our winners with about 25k losses for a net of around 50k profit since we Sept 1st.  



On the futures side of things Kevin added stop for his MPLS-KC Spread; in which he is a little bit behind. I added a stop and placed an objective on my long corn while adding more length at today's close.  Basically a trade that is a scale buy trade.  

Dan then moved his risk on his long MPLS March wheat up to help GTD that he locks in another winner; while opening up the upside; figuring a break threw of 9.00 could quickly accelerate buying.

I then had an open order to buy MPLS at 9.00 on a buy stop; decided to place a sell at the market with a 20 cent objective and changed my buy stop to a risk and reverse against my short MPLS March at 8.90.  Bottom line i remain friendly but look for the market to congest a little bit before trying to make another leg higher.

Chris then placed our first non-grain trade; he shorted crude oil at 101.69; with a risk to 103.00 and a reverse objective at 95.00.

Dan then went long corn on the march; risking to 6.42 with an objective of 6.71.

Lastly on the futures bought 1 jan bean at the close; placed another order to buy another at 11.85; with a risk of 11.79 and an objective of 12.25

On the options side of things the only adjustment made was Chris putting in an order to sell 1 MPLS March 8.50 put if we close the MPLS March Futures above 9.00; adding to his strangle that he is currently up about 2500 on.

The last trade was Jeremey purchasing an 11.50 Jan bean put and buying a 12.00 Jan bean call.  My exit is next week Wed (or at least that is the exit plan).  The reason for the purchase of both of these with a game plan of exiting soon; is simply to try and pick up a little increase in volatility as these options only have an implied volatility of about 14-15%; whereas the corn and wheat options seem to be 25-35%;   I don't want to have the theta eat me away that is why I plan on exiting in about a week; as i have it calculated that theta is going to cost about 30-35 a day; while a 10 % spike in volatility could give me a chance to make a couple thousand and a big move either way allows gamma to help my net delta position out in a hurry.  

Jordan was ill and didn't make the session; so all of his open trades are still open.  Perhaps being long all of the beans made him a little ill?

Please make sure to join us next week in Onida as we have another session.  With the Thanksgiving Holiday we might move it up a day; but if we do we will have plenty of text messages and emails out.




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