Options play: How long will this soybean slide last?

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

Options play: How long will this soybean slide last?

There are many different factors that have contributed to the slide in soybean prices over the last week.

Fundamentally, some of the factors that have had an impact on the slide in soybean prices from a high of about $10.61/bushel on January 12 all the way down to a low of $9.67/bushel on January 23 are too many to mention here, but I will cover a few. I’m hearing from conversations with traders and farmers that the South American crop that will come to harvest in the coming weeks should be a big time bumper crop, if not a record crop. Although I’m reading that our number one buyer the Chinese have had some very good overall economic signs over the last week which could lead to very solid demand price action is showing me that might not be enough to push prices up. In fact according to morning Hightower commentary on Friday, “China’s Shanghai Composite was also higher and advanced into the highest level in five years, with an added source of support coming on a slight beat in Chinese manufacturing activity in January.” That’s great news for their economy, but will it actually translate into solid bean purchases by China? As of now prices are telling me not.

Technically, I have added my favorite technical indicators to the gold chart below. They are the 9 (red line), 20 (green line), and the 50 (blue line) period simple moving averages or SMA’s. I have also added Bollinger Bands or BB’s (the light blue shaded area) and Candlesticks (the red and green bars). On the daily chart below each bar or Candlestick represents one day of trading. These few technical indicators tell me 6-12 different characteristics about the market at a quick glance. I have them saved on my charts in MARKETHEAD so they can populate any chart, any market, and any time frame at the click of a mouse.

MOVING AVERAGE FORMULAS AND STRATEGY GUIDE:

http://www.zaner.com/offers/?page=3&ap=mmckinne

Also from a technical standpoint this is a break out to the downside on the chart below in my view. We also have what I have coined a “SUPER-TREND” down on this March soybean chart. In order to achieve this what we need to have happen first is a cross of the 9 period SMA (red line) down and under the 20 period SMA (green line) as both indicators point lower on a fairly sharp angle while the market itself trades below the 9. Now we have the 9 period SMA as our first area of resistance, then the 20, then the 50 SMA’s and finally the top line of the BB’s.

I figured this out by pulling up and studying a daily and weekly chart with my indicators by the click of a mouse which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 80-85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my reader’s should check it out. Yes?

March daily soybean chart

OPTION PLAY:

Some good plays I think could be to buy puts or bear put spreads with a call for a hedge or “insurance” in case the trend changes to up dramatically. I would recommend this in a 3 to 1 ratio as always. Puts or bear put spreads have a limited risk. Another play could be to sell deep out of the money calls to collect premium. This tsrategy requires a well-funded account and a high risk tolerance. But as they say, no risk no reward.

For exact details on strategies, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com .

It is also important to note that I am not married to a market, but to trends. So I make recommendations with options on futures and commodities like the energies, metals, currencies, softs, financials, and more. So whether you are a hedger or a speculator I believe I can help by putting together strategies and recommendations present them to you, then as always leave the final decision in your hands. We work as a team. Also recommending when to get in and when to get out while watching the trade every step of the way as I keep you updated personally. May all the best trades be yours and mine.

Super Trend Simple Moving Average Report:

http://www.zaner.com/offers/?page=4&ap=mmckinne

FREE QUOTE- “Diamonds are made under pressure.” -Peter Marshall

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS FEES.

Options play: Gold goes parabolic

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

Options play: Gold goes parabolic

After going on a complete tear higher, Comex gold settles down a bit.

Fundamentally, after rallying to high for this move today (1-21-15, 11:07 am) at about $1307/ounce the market seems to be very oversold to me. Although we haven’t taken out the previous high of about $1347/ounce back in the week of July 11th earlier this year. Some experts are saying this is just your “run of the mill” rally that can occur at the start of the year. Personally, I believe with what happened to the Swiss Franc as it made about a 30 thousand dollar move in one day in the futures market, some recent choppy trading in the equity markets, and crude prices that have nosed dived maybe this rally in gold could be much more. We’ll have to what and see.

Technically, I have added my favorite technical indicators to the gold chart below. They are the 9 (red line), 20 (green line), and the 50 (blue line) period simple moving averages or SMA’s. I have also added Bollinger Bands or BB’s (the light blue shaded area) and Candlesticks (the red and green bars). On the daily chart below each bar or Candlestick represents one day of trading. These few technical indicators tell me 6-12 different characteristics about the market at a quick glance. I have them saved on my charts in MARKETHEAD so they can populate any chart, any market, and any time frame at the click of a mouse.

MOVING AVERAGE FORMULAS AND STRATEGY GUIDE:

http://www.zaner.com/offers/?page=3&ap=mmckinne

Also from a technical standpoint this is a big bullish breakout on both charts in my view. We also have what I have coined a “SUPER-TREND” up on both charts. In order to achieve this what we need to have happen first is a cross of the 9 period SMA (red line) up and over the 20 period SMA (green line) as both indicators point higher on a fairly sharp angle while the market itself trades above the 9. Now we have the 9 period SMA as our first area of support, then the 20, and on the daily chart the 50.

On the daily chart below I also want to point out that what I like to pay attention to on the Bollinger Bands is not the light blue shaded area itself, but where the light blue area starts at the bottom and then where it ends at the top. So I have four out of five of my indicators pointing up and they are the 50 day, the 20 day, the 9 day, and the top line of the BB’s. That is extremely bullish to me especially when the market is trading not only above the 9 day, but also above the top line of the BB’s. This could also indicate an overbought environment in corn. However, even though the market could be do for a correction back to the 9 day SMA or so, markets can remain overbought for long periods of time. At rate I expect higher prices.

I figured this out by pulling up and studying a daily and weekly chart with my indicators by the click of a mouse which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 80-85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my reader’s should check it out. Yes?

March daily gold chart

Super Trend Simple Moving Average Report:

http://www.zaner.com/offers/?page=4&ap=mmckinne

OPTION PLAY:

Some good plays I think could be to buy calls or bull call spreads with a put for a hedge or “insurance” in case the trend changes to down dramatically. I would recommend this in a 3 to 1 ratio as always. Calls or bull call spreads have a limited risk and unlimited profit potential.

For exact details on strategies, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com .

It is also important to note that I am not married to a market, but to trends. So I make recommendations with options on futures and commodities like the energies, metals, currencies, softs, financials, and more. So whether you are a hedger or a speculator I believe I can help by putting together strategies and recommendations present them to you, then as always leave the final decision in your hands. We work as a team. Also recommending when to get in and when to get out while watching the trade every step of the way as I keep you updated personally. May all the best trades be yours and mine.

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “Diamonds are made under pressure.” -Peter Marshall

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS FEES.

Options play: Symmetrical Triangle in corn violated

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

Options play: Symmetrical Triangle in corn violated

One of my favorite and most reliable technical formations known as a Symmetrical Triangle has been violated in the March corn market.

Fundamentally, according to Hightower morning commentary on the corn today (1-14-15), “Failure to breakout to the upside to test new highs after a bullish (against expectations) USDA report on Monday, a surging US Dollar and very negative commodity market sentiment forced the market sharply lower yesterday, and more downside could be ahead following the technical failure. March corn closed 16 1/2 lower on the session and down 21 cents from the early peak as volume was huge on the down move, spreads were slammed lower and the intraday action looked like heavy long liquidation.” Some of our Ag Hedge Strategist’s here at Zaner Ag didn’t find the USDA’s numbers to be a surprise very much at all. In fact, I’m pretty sure our VP of Zaner Ag was right on the money with his predictions on some of the numbers reported by the USDA on Monday. At any rate, the feeling I am getting fundamentally is that there is more supply than demand. That could equal lower prices, no?

When Does Weather Matter: http://www.zaner.com/offers/?page=6&ap=mmckinne

Technically, I have added my favorite technical indicators to this chart below. They are the 9 (red line), 20 (green line), and the 50 (black line) day Simple Moving Averages or SMA’s. I have also added Bollinger Bands or BB’s (the two Royal Blue lines) and Candlesticks (the red and green bars with the candlestick wicks and on this daily chart each bar represents one day of trading). These few technical indicators tell me 8-10 different characteristics about the market at a quick glance so I have them saved on my charts in MARKETHEAD. That way they can populate on any chart I choose at the click of a mouse.

Most importantly, I have added a Symmetrical Triangle (very dark, thick black lines). This has been one of the most reliable indicators I have found. This formation was breeched to the downside as the March corn took out the support or the bottom line of the Symmetrical Triangle. If this formation is reliable this downward trend could go on for a good long time in the corn and the harvest rally may have topped out.

Technically, my favorite indicators tell me that right now the March corn is in what I have coined as a SUPER-TREND down. This SUPER-TREND down occurs when the 9 day SMA (red line) has crossed down and under the 20 day SMA (green line) and both indicators point down or on lower angles. Also the market must trade below the 9 day SMA and we have all of that here on this March daily chart below. So this with the combination of the Symmetrical Triangle support falling apart I am bearish to say the least on this market.

I figured this out by going back and forth from a daily to a weekly chart and apllying these indicators to the charts at the click of a mouse which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 80-85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my reader’s should check it out. Yes?

March daily corn chart
http://i1.wp.com/media.barchart.com/cm/users/7821/ZSH5-daily-sym-tri-1-14-15.png?w=625

OPTION PLAY:

Some good plays I think could be to buy puts or bear put spreads with a call for a hedge or “insurance” in case the trend changes to down dramatically. I would recommend this in a 3 to 1 ratio as always. Puts or bear put spreads have a limited risk and unlimited profit potential. Also selling calls could be a potential play here. Although one should have a well funded account and be aware of the unlimited risk involved when selling calls.

For exact details on strategies, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com .

It is also important to note that I am not married to a market, but to trends. I believe that we are on the verge of lots of upcoming trends. So get in touch with me and I’ll show you what could be right around the corner in terms of trending markets and how to trade them. There could be upcoming trends in the grains, energies, indices, financials, precious metals, softs and more.

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “If you wait to do everything until you’re sure it’s right, you’ll probably never do much of anything .” -Win Borden

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STRICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS FEES.

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

Options play: Can this bullish breakout in corn prices last?

Does a close above $4/bushel in March corn mean we are on our way?

Fundamentally, according to Hightower morning commentary found at Markethead, “News that Ukraine is struggling to fill all of the 19 cargoes (1.1 million tonnes) of corn sales to China is seen as a positive force as there is talk that they will be unable on near 200,000 tonnes.” The Ukraine of all places is unable to meet China’s demand for corn acting as a bullish fundamental for the market seems odd to me, but the bulls will take it.

That same Hightower report claimed that, “The US continues to see pretty solid export sales data with sales for the week ending December 4th coming in at 962,800 tonnes, down from 1.170 million tonnes last week. As of December 4th, cumulative corn sales stand at 53.3% of the USDA forecast for the 2014/2015 (current) marketing year versus a 5-year average of 55.8%.” So even solid numbers seemed to help the bullish move up and breakout on Friday.

When Does Weather Matter: http://www.zaner.com/offers/?page=6&ap=mmckinne

Technically, I have added my favorite technical indicators to the corn charts below. They are the 9 (red line), 20 (green line), and the 50 (blue line) period simple moving averages or SMA’s. I have also added Bollinger Bands or BB’s (the light blue shaded area) and Candlesticks (the red and green bars). On the daily chart below each bar or Candlestick represents one day of trading and on the weekly chart below each bar or Candlestick represents one week of trading. These few technical indicators tell me 6-12 different characteristics about the market at a quick glance. I have them saved on my charts in MARKETHEAD so they can populate any chart, any market, and any time frame at the click of a mouse.

Also from a technical standpoint this is a big bullish breakout on both charts in my view. We also have what I have coined a “SUPER-TREND” up on both charts. In order to achieve this what we need to have happen first is a cross of the 9 period SMA (red line) up and over the 20 period SMA (green line) as both indicators point higher on a fairly sharp angle while the market itself trades above the 9. Now we have the 9 period SMA as our first area of support, then the 20, and on the daily chart the 50.

On the daily chart below I also want to point out that what I like to pay attention to on the Bollinger Bands is not the light blue shaded area itself, but where the light blue area starts at the bottom and then where it ends at the top. So I have four out of five of my indicators pointing up and they are the 50 day, the 20 day, the 9 day, and the top line of the BB’s. That is extremely bullish to me especially when the market is trading not only above the 9 day, but also above the top line of the BB’s. This could also indicate an overbought environment in corn. However, even though the market could be do for a correction back to to the 9 day SMA or so, markets can remain overbought for long periods of time. At rate I expect higher prices.

I figured this out by pulling up and studying a daily and weekly chart with my indicators by the click of a mouse which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 80-85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my reader’s should check it out. Yes?

March daily corn chart
http://i0.wp.com/www.commoditycharts.com/chartcache/0336088d98406133fd9ecc8a900eb057.png?w=625

Technically, on the weekly chart below as I have mentioned we do have what I call a “SUPER-TREND” up. Also what I find pretty interesting is that we have not had a weekly close above $4/bushel since the week of June 30th. So that is also quite bullish in my eyes. We have the 9 period SMA as the first area of support, the 20 period SMA as the second area of support and the 50 period SMA as resistance on the upside. Good stuff, huh? Overall, with two very bullish charts according to my indicators it looks as though this could be the start of something bigger so I’m looking for higher prices. Maybe after a pull-back and or maybe not.

Super Trend Simple Moving Average Report:

http://www.zaner.com/offers/?page=4&ap=mmckinne

Weekly corn chart
http://i1.wp.com/www.commoditycharts.com/chartcache/3412bf4534a400b2a7556c9e48c67755.png?w=625

OPTION PLAY:

Some good plays I think could be to buy calls or bull call spreads with a put for a hedge or “insurance” in case the trend changes to down dramatically. I would recommend this in a 3 to 1 ratio as always. Calls or bull call spreads have a limited risk and unlimited profit potential.

For exact details on strategies, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com .

It is also important to note that I am not married to a market, but to trends. So I make recommendations with options on futures and commodities like the energies, metals, currencies, softs, financials, and more. So whether you are a hedger or a speculator I believe I can help by putting together strategies and recommendations present them to you, then as always leave the final decision in your hands. We work as a team. Also recommending when to get in and when to get out while watching the trade every step of the way as I keep you updated personally. May all the best trades be yours and mine.

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “If you wait to do everything until you’re sure it’s right, you’ll probably never do much of anything .” -Win Borden

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS FEES.

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

Options play: Once again, where is the bottom in crude oil?

I believe I have a unique way for you to get that professional opinion you’ve been looking for after all these years.

Fundamentally, crude oil has fallen to a 5 year low as Saudi Arabia gave China a “special deal” on prices and the U.S. dollar index futures has rallied over the last several weeks. OPEC doesn’t care either as evidenced by their last meeting where they vowed to keep production the same amid falling prices. It’s a good reason for them to pump more crude oil now in order to sell as much as they can to make up the lost revenue by falling prices. It’s like the 12 nations are at war with each other to see who can produce the most I think.

CME Options On Futures: The Basics: http://www.zaner.com/offers/?page=9&ap=mmckinne

This will inevitably cause even lower prices I believe. OPEC will continue to glut the market in my opinion. I never accused OPEC of being the smartest knife in the drawer. In other words, in my view they are a few sandwiches shy of a picnic, you know the lights are on, but nobody is home. OPEC is like well…a few fries short of a Happy Meal or a few peas short of a casserole. Anyway, I like to say I may not be the sharpest tack in the box, but if you stick your finger in there you will get poked. This is how and why I can bring this awesome commentary on the crude oil market to the masses. Okay, okay, time to get serious. Check this out, it’s called the “Trend Spotter” and I got it from one of our web applications called Markethead (more on this later).

Crude Oil WTI January 2015 (NYMEX)
[ Futures Prices ] [ Options ] [ Detailed Quote ] [ Technicals ] [ Chart ]
Date Open High Low Last Change Percent
12/05/14 66.80 66.85 65.17 65.64 -1.17 -1.75%

Composite Indicator Signal
Trend Spotter -Sell

Short Term Indicators
7 Day Average Directional Indicator -Sell
10 – 8 Day Moving Average Hilo Channel -Sell
20 Day Moving Average vs Price -Sell
20 – 50 Day MACD Oscillator -Sell
20 Day Bollinger BandsĀ® -Hold

Short Term Indicators Average: 80% -Sell
20-Day Average Volume – 249,027

Medium Term Indicators
40 Day Commodity Channel Index -Sell
50 Day Moving Average vs Price -Sell
20 – 100 Day MACD Oscillator -Sell
50 Day Parabolic Time/Price -Sell

Medium Term Indicators Average: 100% -Sell
50-Day Average Volume – 140,910

Long Term Indicators
60 Day Commodity Channel Index -Sell
100 Day Moving Average vs Price -Sell
50 – 100 Day MACD Oscillator -Sell

Long Term Indicators Average: 100% -Sell
100-Day Average Volume – 81,359

Overall Barchart Opinion: 96% -Sell

Price Support Pivot Point Resistance
65.64 65.86 67.04 67.99

——————————————————————————–

Technically, on the chart below I have placed my favorite technical indicators. They are the 9 day Simple Moving Average (SMA, red line), the 20 day Simple Moving Average (SMA, green line), and the 50 day Simple Moving Average (SMA, blue line). I have also added the Bollinger Bands (BB’s, yellow lines) and Candlesticks (red and green bars), each bar represents one day of trading on these daily charts. I don’t solely rely on the “Trend Spotter” above, but it’s nice when they are on the same wave length and right now they are.

The market right now is in what I have coined a “Super-Trend” down. In order to achieve this very cool technical trend we first need the 9 day SMA to cross down and below the 20 day SMA as both indicators point lower on fairly sharp angles-check. Second we need the market itself to be trading below the 9 day SMA as it now becomes our first area of resistance-check. Finally, the 20 day SMA should act as our second area of resistance-check. In my view we have a “Super-Trend” down in crude oil.

Super Trend Simple Moving Average Report:

http://www.zaner.com/offers/?page=4&ap=mmckinne

I figured this out by placing my favorite indicators on the charts and studying them which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about75% to 85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my readers should check it out. Yes?

Daily January crude oil chart

OPTION PLAY:

Since I see crude prices moving lower from here so a play could be to buy put options or bear put spreads with a call for a hedge in a 3 to 1 ratio just in case the trend changes dramatically to the upside. Another play could be to sell deep out of the money calls collecting premium. Remember selling naked options involves unlimited risk and should only be considered if you have a well-funded account and a high risk tolerance. Also remember typically the higher the risk, the higher the reward.

For exact details on other types of risk, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com. In addition, I am by no means “married” to the crude oil market. I like to make trade recommendations to my clients in the direction of the existing trend whether the market be the precious metals, energies, currencies, financials, softs, grains and more.

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “I hated every minute of training, but I said, ‘…don’t quit. Suffer now and live the rest of your life as a champion.” -Muhammad Ali

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS COMMISSIONS.

Options play: Was Black Friday a good bargain for for soybeans?

Direct-312-277-0115, Gate of writing- 11/29/14

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

Options play: Was Black Friday a good bargain for for soybeans?

Since January soybeans closed down more than 30 cents/bushel on Black Friday, I wondred if that was the best bargain on the biggest bargain hunting day of the year.

Fundamentally, we had some serious outside market influences in the soybeans other than just the “run of the mill” supply and demand. We had a December U.S. dollar index futures close up about 79 cents, a December gold market that fell about $30/ounce, a January RBOB unleaded gasoline market that closed almost 20 cents/gallon lower, and a January crude oil market that closed down almost $8/barrel all in one day. So much for boring, slow holiday trading. It’s hard for me to believe that these bearish markets didn’t drag the beans down with it. So I’ll go with that explanation as to why beans fell that much today.

When Does Weather Matter: http://www.zaner.com/offers/?page=6&ap=mmckinne

Technically, I have added my favorite technical indicators to this chart below. They are the 9 (red line), 20 (green line), and the 50 (blue line) day Simple Moving Averages or SMA’s. I have also added Bollinger Bands or BB’s (the light blue shaded area) and Candlesticks (the red and green bars with the candle stick wicks and on this daily chart each bar represents one day of trading). These few technical indicators tell me 8-10 different characteristics about the market at a quick glance so I have them saved on my charts in MARKETHEAD, so they can populate on any chart I choose at the click of a mouse.

Options on Beans for People Who Don’t Know Beans About Options: http://www.zaner.com/offers/?page=8&ap=mmckinne

Technically, my favorite indicators tell me that right now the January soybeans are in a sideways rangebound trend. Why you may ask? Well, literally all of my favorite indicators are pointing sideways. The 9 day SMA, the 20 day SMA, the 50 day SMA, the top line of the BB’s and the bottom line of the BB’s are all pointing horizontal. I see the top of the range at about $10.50/bushel roughly and the bottom of the range at about $10.20/bushel. The BB’s are at $10.63/bushel at the top of the range and at $10.02 at the bottom of the range.

I figured this out by going back and forth from a daily to a weekly chart and apllying these indicators to the charts at the click of a mouse which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 80-85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my reader’s should check it out. Yes?

DAILY SOYBEAN CHART
ZSF5-dailybean-11-28-14

OPTION PLAY:

For exact details on strategies, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com .

It is also important to note that I am not married to a market, but to trends. I believe that we are on the verge of lots of upcoming trends. So get in touch with me and I’ll show you what could be right around the corner in terms of trending markets and how to to trade them. There could be upcoming trends in the grains, energies, indices, financials, precious metals, softs and more.

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “If you wait to do everything until you’re sure it’s right, you’ll probably never do much of anything .” -Win Borden

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS FEES.

Options play: Are corn and beans ready for the next leg down?

Direct-312-277-0115, Date of writing- 10/12/14

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

Options play: Are corn and beans ready for the next leg down?

After the USDA supply demand and crop progress report on Friday (10/10/14), I watched grains fall.

Fundamentally, according to a Bloomberg report today (10-10-14), “Corn futures fell the most since September after a government report signaled a record-high U.S. crop will add to a grain glut, driving down global food costs. Soybeans had the biggest drop in in two months…”. The article written by Jeff Wilson was titled, Corn Tumbles Most in Five Weeks on Bumper Crop; Soy Drops. The report that slammed these markets was the USDA supply demand and crop progress report. The article went on to state that the U.S. will harvest a bumper and record crop this year 3.927 billion bushels of soybeans.

This in my view is all very bearish for the corn and beans. There is still the possibility that rains could make it to wet to get the grains harvested on time, which could help the bulls. Although each day that goes by, this scenario becomes less and less likely in my expert opinion.

When Does Weather Matter: http://www.zaner.com/offers/?page=6&ap=mmckinne
Technically, I have added my favorite technical indicators to this soybean and corn charts below. They are the 9 (red line), 20 (green line), and the 50 (blue line) day simple moving averages or SMA’s. I have also added bollinger bands or BB’s (the light blue shaded area) and candlesticks (the red and green bars with the wicks, on these daily charts each bar represents a day of trading). These few technical indicators tell me 8-10 different characteristics about the market at a quick glance. I have them saved on my charts in MARKETHEAD so they can populate any chart, any market, and any time frame at the click of a mouse.

What we have here with the November soybeans first and foremost is a market that has gone from a “SUPER-TREND” down to a downward trend. The reason that the market is technically still in a downward trend according to my favorite indicators is because of the 20 day SMA (green line). The 20 day is still pointing on a downward angle and the market is trading on it or below it and that to me is a downward trend.

The market also closed below the 9 day SMA (red line) as well, but the 9 is pointing on an upward angle which I expect may change in the next week to pointing down. I also have some very clear resistance lines by using my favorite indicators. The first line is the 20 day SMA, then the top line of the bollinger bands (BB’s, light blue shaded area), and finally the 50 day SMA (blue line). Also note that all three of these indicators are pointing lower on good sharp angles.

I figured this out by pulling up and studying a daily chart with my indicators by the click of a mouse which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 80-85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my reader’s should check it out. Yes?

Options on Beans for People Who Don’t Know Beans About Options: http://www.zaner.com/offers/?page=8&ap=mmckinne

November daily soybean chart
ZSX4-daily-10-12-14

Technically, I did have a market here in the December corn that was in a “SUPER-TREND” down for a very long time. Last week this changed. What we have now is a December corn market that is in a weak downward trend according to my indicators. First of all the 9 day SMA is pointing up and the 20 day SMA is pointing sideways. The market is trading above both of these and they are the first areas of support, instead of resistance. Resistance now is the top line of the BB’s and then the next area of resistance is the 50 day SMA, which is still pointing lower on a nice sharp angle and the market is holding below both of these indicators.

Super Trend Simple Moving Average Report:

http://www.zaner.com/offers/?page=4&ap=mmckinne

December daily corn chart
ZCZ4-daily-10-12-14< OPTION PLAY:

Some good plays I think could be to buy puts or put spreads with a call for a hedge or "insurance" in case the trend changes to up dramatically. I would recommend this in a 3 to 1 ratio as always. Puts or put spreads have a limited risk and an in the case of outright put options, unlimited profit potential to zero for the price of the underlying future or commodity.

I believe this could be an opportunity, of course not without commensurate risk, to sell deep out of the money call options and collect premium. This is due to the current downward action or maybe the potential for future consolidation.

For exact details on strategies, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com .

It is also important to note that I am not married to a market, but to trends. So I make recommendations with options on futures and commodities like the energies, metals, currencies, softs, financials, and more. So whether you are a hedger or a speculator I believe I can help by putting together strategies and recommendations. Also recommending when to get in and when to get out while watching the trade every step of the way as I keep you updated personally. May all the best trades be yours and mine.

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “If you wait to do everything until you’re sure it’s right, you’ll probably never do much of anything .” -Win Borden

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS FEES.