wheat futures trade idea
July KANSAS CITY WHEAT:
We have seen this formation before!
Now this may not be the top of this leg higher, but if you are wiling to take a shot, this shorter term trade may be for you!
We have the WASDE report on Friday. I would like to see if we could participate in a move lower ahead of that release. The release of the report is 11:00a (cst) tomorrow morning so we have roughly 24 hours to see how this turns out.
SELLING to enter at 4.90 or better (day order) …last traded 4.87 3/4
Risk will be the 5.02 level …($600.00)
Objective will be the 4.50 level $2,000.00
(short term obj will be 4.70 level …$1,000.00)
The July 5.00 call option is trading for roughly 8 cents!
*** You can use this option as added protection with your stop order OR you can use it as your stop on expiration on June 24th ***
Initial margin for the futures contract $1,540.00
straight OPTIONS TRADERS: Look to buy the July 4.80 put for 10 cents ($500.00)
Check out the July Kansas City Wheat chart:
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