Soybean Complex Rally

[da-net]

want to take a gamble on beans....what is the best and least risky way to do it? options? minis? spreads?

 

[Optional]

Minis are great.

 

[nazzdack]

Quote from da-net:
....gamble on beans....
----the best and least risky way to do it?

1) The seasonal pattern this time of year is for a price rally and volatility increase until the end of June before the "harvest decline" sets in.
2) Stay away from the mini (1,000 bushel) contract.

 

[JPope]

Whats wrong with the mini if you're not using stops?

 

[nazzdack]

Quote from JPope:
Whats wrong with the mini.....

1) The mini-grains are illiquid and your stop-orders can have a lot of slippage.
2) Instead of the mini-bean, trade a 1-lot of corn, the 5000-bushel contract, instead.

 

[lsd47]

Quote from nazzdack:

1) The mini-grains are illiquid and your stop-orders can have a lot of slippage.
2) Instead of the mini-bean, trade a 1-lot of corn, the 5000-bushel contract, instead.

how much slippage on the mini are we talking about that is typical?

 

[nazzdack]

Quote from lsd47:
....how much.....is typical?

During the "pit session" time, not too much. Overnight, if those contracts still trade, potentially "a lot".

 

[Mercor]

Quote from lsd47:

how much slippage on the mini are we talking about that is typical?

One tick past your stop.