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Northwest Iowa | If you're going to use futures, Look for a low of some type in the next 2 weeks. Corn especially is a pretty strong seasonal trade with a March 1 low. I think Moore research lists the "Buy corn March 1 as nearly a 100% trade. So--- doing that, you are long the board. Make sure you set a $ amount of risk that is acceptable. "Better to be out of a market wanting in than to be in a market wanting out." On the option side, you'd look to sell the put options under the market if you're bullish. If the market rises as you expect, those put options will lose value. If you do the math, those out of the money puts will be a terrible value (to buy) so will be a good one to sell. The market would have to drop just to get to those option's strike prices, then continue so that you could make money (if you bought them). The deep in the money puts (above the market) usually are a poor sell since they will more closely to the futures market. That's where the "delta" is figured. Buying an option, you want a higher delta. Selling them you want a lower delta. I probably have you thoroughly confused now!! sorry! | |
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option strategy
