In the aftermath of the commodity markets being so volatile last week, I really don't have very much in the way of prospective trades for this week. However, one trade did get triggered and that was the trade I had been watching to buy a put option in December Corn.
December Corn on August 16, closed below the bottom of the pennant that prices had been in for a long while. However, the December 320 put option on Friday, August 17, was 11 points, or $550, which was more than I wanted to invest. So, that day I put in an open order to buy one December 320 put for 7.5 cents or less. That would put the price of my option at $375 since 1 cent equals $50. My open order was filled on Monday, August 20, for 7.5 cents.
Unfortunately, December Corn prices have advanced back into the pennant formation. Today, Corn prices were up fairly sharply at 6 cents. However, seemed to be unable to get past resistance at the top of the pennant at 357. So, I'm hoping that this resistance level holds and that prices will continue to move back down. But, if the market continues to move against my position, I'm placing a mental stop to get out of this trade if prices close above 360.
To take a look at all of my completed trades, please go to www.mylearn2trade.com.
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