I've been watching the December Corn contract for a good while now. I'm still expecting to short this market as I think there is a good possibility that Corn will move down to at least $300.
Since breaking out of its channel and moving all the way up to 431 on June 18, the market has dropped significantly. From June 19 through July 3, this market dropped all the way to 336, which is a move of $4,750. From July 5 through July 13, the market then corrected and moved back up as high as 371. Since then, however, the market has resumed its downtrend, although today, July 18, prices were back up 5.4 cents at the close. It also still looks as if the 336 area is acting as support. So, I'm watching to see if prices can close below 336. If prices do close below 336, then I want to short this market as I believe that the market will then move down to its next support level of 300, which would be a move of $1800 on a contract. Because of the volatility of this market, however, I'm looking at buying a put option instead of a contract. I'm looking at putting in an open order to buy 1 December Corn 310 put for 8 cents or less. This option expires on November 20th which would give a good amount of time for the trade to happen.
To take a look at all of my completed and prospective trades, please go to www.mylearn2trade.com.
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