Youngtrader's Commodity Journal
- Thread starter youngtrader
- Start date
holy shit i just looked at wheat prices. Im gonna add some kc/chi july/july and sep/sep tommorow. 30 cents or lower is a fantastic price. The only reason they got that narrow again was because all the big boys have been unwinding these spreads. they are golden, easy 10 15 cents a piece. 5 spreads time 500 equals 2500 bucks!
put on 2 kc/chi sep at 31 cents a pop. looking to pick up 5-10 cents. have a great weekend all
Rtrader2525
Yeah when I looked at that spread I thought those had to be good....im only long 1 at 37 though.....probably should buy a few more.
As far as that corn straddle goes man. You sell a call and sell a put at the same strike price. So you capture the premium on both the call and put and then you add that premium to the strike price (ex. 620 straddle for a premium of 132 has a range of 752 to 488)
and if it stays in that range you are profitable at exp right?
yep you capture the total amount of premium which in this case is about 7 grand!!!
Ok everybody 2 corn straddles at 132, 2 auggie/nov bean spreads at 14 cents, 1 sep kc/chi wheat spread at 37, 1 short july sugar 10.50 straddle at .72 are the positions I have on and I feel good about every last one of em lol!
What I am looking at for monday are the following. Selling 145 calls in july coffee options. These expire in like a week and no way in hell is coffee reaching 145 plus premium....I believe I can sell one of these for .90
Also looking at a $15 short straddle in july bean options. Big time premium in these july options which expire in 13 days or so. You can sell one of these straddles and have a range of profitability at $16-14 in 13 fucking days!!!! If we get less than expected rain this weekend I'm putting them on. As a rule rain makes grain but in this case too much rain is really hurting us by not letting us get the crop in. Judging from the way beans traded friday I would say we put in possibly a short term top at least. I might sell the $14.50 straddle instead.......either way it pays about 5,000 in 13 days lol!!!!
Have a great weekend everybody......im off to the lake for a little fishing today!
What I am looking at for monday are the following. Selling 145 calls in july coffee options. These expire in like a week and no way in hell is coffee reaching 145 plus premium....I believe I can sell one of these for .90
Also looking at a $15 short straddle in july bean options. Big time premium in these july options which expire in 13 days or so. You can sell one of these straddles and have a range of profitability at $16-14 in 13 fucking days!!!! If we get less than expected rain this weekend I'm putting them on. As a rule rain makes grain but in this case too much rain is really hurting us by not letting us get the crop in. Judging from the way beans traded friday I would say we put in possibly a short term top at least. I might sell the $14.50 straddle instead.......either way it pays about 5,000 in 13 days lol!!!!
Have a great weekend everybody......im off to the lake for a little fishing today!
Taking the summer off?
lol far from that! Actually to be honest my trading is taking on much bigger size over the past month or so and I just don't have much time to post on the journal anymore. I come home from trading each day and am absolutely drained. However I miss keeping this journal up to date so I tried to start another journal on options but I quickly lost interest (it just wasn't the same
)A little update on me though:
Trading almost entirely options now (trying to learn as much as I can before I start clerking in one of the options pits at the CBOT......hopefully as nothing is in stone yet)
I am trading mainly softs and meat options along with some grain options.
Current positions:
Long 15/14 sep bean put spread at .39 (beans are done for and are heading to 14 quickly.......however longer term I remain bullish but data shows demand is starting to go away and crop conditions are excellent for pod setting and technically longs got fucked when they bought around 15 in sep beans thinking that the support would hold.......we are now down and it will plummet when those longs puke!)
Short a handful of sep 175 coffee calls from 1.20.......trying to buy them back at .25 because I don't want to wait 20 days for .25 a contract! (huge brazilian coffee crop........thats basically it lol)
Offering 1.25 for a sep 13.00 sugar straddle (sugar seems to have found a nice range here for which to trade in........vol is high so basically just playing this trade off of those reasons)
Offering 1.00 for a aug 97 cattle put. (cattle has plummeted lately due to lackluster cash and boxed beef quotes.....its due for a pop with oversold rsi and coming up on major support levels)
Short nov lumber at 256 (seasonal trade, chart has uncanny representation of spooz before it broke hard, freddie and fannie trouble, etc)
Good Trading Guys and I will try to keep this journal updated periodically
YT
Well I have some time so I figured I would update you guys on what I have on.
Like I said I am long 15/14 sep put spreads from .39 in beans. What can I say about the bean market? We have extremely tight stocks in old crop beans but at the same time we are starting to see signs of demand turning off at these higher prices. As far as the new crop goes........favorable weather will be extremely helpful when we start to set pods over the near future. However here in WestCentral Iowa the beans look very poor but we might just be in a bad area this year as I am hearing that most of the beans look pretty decent. Technically these beans were set up for a downfall and im lucky to have recognized it early (thats a first lol). We had a head and shoulders pattern forming in the bean market and when sep beans hit that 15 level and popped 30 cents or so when oil was down hard and commodities were taking a shit I knew that it had to be bigger players bullying the market to suck in stupid longs. As you can see the next day we fell around 50 cents to once again test 15 and bounce. This probably sucked in a ton of people who figured a test of the highs was in the cards but little did they know the very next day we broke the day before's lows and started to plumet. I expect major liquidation to occur next week. Im staying bearish in this market until I see a bottom.
Like I said I am long 15/14 sep put spreads from .39 in beans. What can I say about the bean market? We have extremely tight stocks in old crop beans but at the same time we are starting to see signs of demand turning off at these higher prices. As far as the new crop goes........favorable weather will be extremely helpful when we start to set pods over the near future. However here in WestCentral Iowa the beans look very poor but we might just be in a bad area this year as I am hearing that most of the beans look pretty decent. Technically these beans were set up for a downfall and im lucky to have recognized it early (thats a first lol). We had a head and shoulders pattern forming in the bean market and when sep beans hit that 15 level and popped 30 cents or so when oil was down hard and commodities were taking a shit I knew that it had to be bigger players bullying the market to suck in stupid longs. As you can see the next day we fell around 50 cents to once again test 15 and bounce. This probably sucked in a ton of people who figured a test of the highs was in the cards but little did they know the very next day we broke the day before's lows and started to plumet. I expect major liquidation to occur next week. Im staying bearish in this market until I see a bottom.