This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Spreads, published on Tuesday, July 12, 2016.
There is a bear futures spread trade opportunity in the Soybean market on a trend line breakout today. Establishing a bearish position where a front month contract is sold and a deferred month contract is purchased. Anticipating the spread to widen negatively. Setting up a futures spread will potentially reduce the risk and volatility, as well as reducing the margin requirement, in this volatile grain market.
Sell the August 2016 / Buy the January 2017 Soybean spread at 20’0 cents using a limit order, GTC.
Entry is a pull back halfway of today’s trading range. Initial Margin = $1,650 Maintenance Margin = $1,500
Stop loss: Stop loss is 33’0 cents, above the 7/07/16 high, GTC. (Risk: $650)
Target: Target is negative 10’cents, near the twelve month contract low and full carry price, GTC. (Profit: $1,500)
Soybean Spread Chart
Contact your Daniels Trading broker by phone or email to place this trade.
Try Trade Spotlight: Spreads for 30 Days
Trade Spotlight: Spreads Trial - An email advisory that provides futures spread trade setups accompanied by definitive trade management. Trade setups are developed by applying the GBE trading methodology of chart formation breakouts confirmed through key technical indicators.
Trade Spotlight: Spreads includes an email newsletter subscription.
Trade Spotlight: Spreads trial lasts 30 days.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.