+ 1 972 387 0080
Wheat
Having recovered from wounds inflicted in last month’s break in wheat, my bull headed spirit wants to re-engage.
There are two basic courses of action: futures or options (A combination of the two also).
1) Buy a futures contract and risk the trade to a close below $4.80 (loss of around $2000). Objectives are $5.44 ($1350 profit); $5.78 (+$3050); $6.65 (+$7400) & $6.91 (+$8700). This is not to say wheat cannot rally higher; profit potential is unlimited. Recommended investment per contract is $4000, though the margin requirement is only $1400 (There is also a one fifth size contract).
2) Buy call options; call option spreads; et al. The methodology: combinations of calls & puts, and strike prices utilized are boundless. This is something we would have to discuss (risk tolerance and money committed). With options, we can limit your risk to the amount you wish. Hence no major $ commitment is necessary; you can even play for less than $1000. Profit potential can be unlimited.
?) A combination of futures and options. Again, strategy would have to be discussed.
AND WHAT IS THE BOGEYMAN? UKRAINE. A LOT OF WHEAT IS GROWN IN UKRAINE. VLADIMIR PUTIN LIKES UKRAINE.
FINALLY, HOW ABOUT THAT CHART?
(Remember that a red bar means the market closed higher than where it opened. The opposite is true in the case of a black bar. Hence, a market can close higher than yesterday’s close, but below where it opened today…).
And for those of you who are old enough, “Let’s make some bread.”
Regards,
Walt
Walter Otstott
Energies & Metals Markets
Dallas Commodity Company, Inc.
The Colonnade, Building III
15305 Dallas Parkway, Suite 930
Addison, Texas 75001
(972) 387-0080
(972) 387-0018, fax
(214) 537-9750, cell
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This material has been prepared by a sales or trading employee or agent of Dallas Commodity Company and is, or is in the nature of, a solicitation. This material is not a research report prepared by Dallas Commodity Company's Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
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