Nazz gave you some excellent advice. In a market like that it may feel like you need to participate in some way because of how fast it moves and the lure of big gains in a hurry, but I wouldn't touch it with a 10 foot pole at this point. Let it play out with someone else's money on the line, the entertainment value of watching it happen is enough for me...
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Minneapolis Wheat
- Thread starter Nick Leeson Jr
- Start date
Thanks guys, in retrospect I am looking to "make" trades you know? What if thsoe guys all take profit, I have no idea f the funds have rolled yet, there are way to many unknowns to sell a bunch of fucking puts, i had a long stressed out day yesterday and wasn't thinking very well. Thanks for the advice guys
Closing report 2-5-08, amazing numbers . . .
Minneapolis: Spring Wheat was up as much as it has ever been since the introduction of trading limits. The March contract traded synthetically at $16.40 that is up $2.07 from yesterdayâs close. The March/May spread traded as much as $2.90 inverted before closing in about 50 cents. News that StatsCan is seeing in even smaller wheat crop continues to compound supply problems. Cash traders are widely anticipating a spring wheat tender from Japan with interest as putting a price on this wheat is increasingly difficult.
Minneapolis: Spring Wheat was up as much as it has ever been since the introduction of trading limits. The March contract traded synthetically at $16.40 that is up $2.07 from yesterdayâs close. The March/May spread traded as much as $2.90 inverted before closing in about 50 cents. News that StatsCan is seeing in even smaller wheat crop continues to compound supply problems. Cash traders are widely anticipating a spring wheat tender from Japan with interest as putting a price on this wheat is increasingly difficult.
Nazz what would your strategy be for those far out calls?? There isn't much prtein wheat in COLO this year, just got off the phone with my guy down in Sterling. He confirmed that he knows a bunch of guys up in Minneapolis and there is no wheat
Strategy? Find out if there has been any trading volume in the $25 and $26 call options. If not, tell your broker to pay "1 tick" for a 1-lot of either option. That way, you can be the first trader to ever buy that strike price. It'll be a unique claim to fame that you'll have. You might even make a profit on the thing too.
Quote from nazzdack:
Strategy? Find out if there has been any trading volume in the $25 and $26 call options. If not, tell your broker to pay "1 tick" for a 1-lot of either option. That way, you can be the first trader to ever buy that strike price. It'll be a unique claim to fame that you'll have. You might even make a profit on the thing too.
LOL i will try actually
Yeah, I don't know about you guys but we should be in this thing to make money not to have our little "claim to fame". People might actually say wow you were the first idiot who bought those calls? However I do believe it probably isn't a bad stratagy given the current situation we are in with this wheat market.
Here is a fun fact for all you guys. Talked to some guys I know down in chicago and they said there are two locals who bought 500 march/may minni each and are now sitting on a 15 million dollar trade!!! Yeah thats right 15 MILLION!!!
Wonder who it was? Cliff Larson maybe?
YT
Here is a fun fact for all you guys. Talked to some guys I know down in chicago and they said there are two locals who bought 500 march/may minni each and are now sitting on a 15 million dollar trade!!! Yeah thats right 15 MILLION!!!
Wonder who it was? Cliff Larson maybe?
YT
1) Dude, it's only a twelve-dollar and fifty-cent (not including fees & commissions) claim to fame.
2) I'm not sure of your math. Wheat is $50 per penny per contract. A 500-lot is $25,000 per penny fluctuation. A 15-million dollar profit implies a 6-dollar move in the spread. March/May Minneapolis is $1.30 "premium to the March", not $6. The options don't seem to reflect additional "synthetic premium" above the price limit.
2) I'm not sure of your math. Wheat is $50 per penny per contract. A 500-lot is $25,000 per penny fluctuation. A 15-million dollar profit implies a 6-dollar move in the spread. March/May Minneapolis is $1.30 "premium to the March", not $6. The options don't seem to reflect additional "synthetic premium" above the price limit.