This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Options, published on Tuesday, June 21, 2016.
There is a trade opportunity based on a potential Momentum Entry Technique breakout in the Soybean Meal market. The MACD and Stochastic indicators have hooked bearish. Trend Seeker is still up, but with a weak ranking. Anticipating a change of the Trend Seeker on the breakout. With increased volatility and the potential risk of the stop loss placement if trading futures, turning to the options market to trade this opportunity.
Purchase the September 2016 Soybean Meal 380/350 call spread for 8.00 points or $800, GTC.
Target is the 350.0 price level; near the 50% Fibonacci retracement of the Spring rally.
Risk: $800, plus commission and fees
Reward: $2,200 (380-350 x $100 – cost of the spread or $800), minus commission and fees.
No margin requirement. Expiration date is August 26, 2016 (66 days).
September 2016 Soybean Meal Chart
Contact your Daniels Trading broker by phone or email to place this trade.
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