Market rankings for the option trader

Wednesday commodity market rankings - 2/13/18, By Brad King

We have seen quite a bit of price movement since I last wrote here. However, if you subscribed to my newsletter, you should have bought into the equity pullback on Thursday or Friday last week and should also be long soybean meal again. I also recommended rolling from coffee to sugar. If you initiated these trades, sit tight on equities but roll up the meal again right away. If you are still looking to get long equities again, you can buy call spreads in equities on weakness. Volatility is too high to buy straight call positions this week.

Hog options will expire tomorrow, if they are in the money, exit.

Both crude and cotton have not been able to regain any bullish momentum. Don't add to these positions until something significant changes. You shouldn't have much more at risk in these trades.

I think it's a good day to add risk to cocoa. Roll your puts up if necessary. Do the opposite for soybean oil. Roll down those options down to take some profits.

I will write again here next week.

If you would like to position for long term trends in 2018, give me a call at 928-773-0472 or you may open an account HERE. Account applications can be completed at your convenience 24 hours/day.

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Bullish commodity rankings

  1. Cotton - Hold long calls.
  2. Crude Oil - Hold long calls.
  3. Dow Jones/Nasdaq - Hold long call spreads.
  4. Australian Dollar - Buy calls today, replacing the British Pound.
  5. Soybean Meal - Hold long calls - reduce risk.
Bearish commodity rankings
  1. Cocoa - Hold long puts - add risk.
  2. Sugar - Hold long puts.
  3. Natural Gas - Hold long puts.
  4. Soybean Oil- Hold long puts - reduce risk.
  5. US Dollar - see the Australian (above).

I have speculator and producer (agricultural hedge) positions listed on my newsletter. Subscribe HERE.

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