Market Rankings for the Option Trader
10/09/2015 8:00 am EST
Brad King, of King Commodities, shares his list of Thursday commodity market rankings and offers some suggestions for option traders to consider.
Thursday commodity market rankings.
There has been very little price movement in the Japanese yen and the euro currency in the last several weeks. If you have a strong opinion on market direction, take a look at November and December options. You might find something worth buying. My guess is that the US dollar begins to strengthen in the next few months.
Bullish commodity rankings and thoughts
- Lean Hogs—Hold December call options.
- Sugar—Look to buy weakness.
- Silver—Look to buy weakness.
- 30 Year Bonds*—Hold put options in December. Sell OTM puts in November on weakness.
- Japanese Yen—Low volatility on both sides.
Bearish commodity rankings and thoughts
- Live Cattle—Buy put spreads in December.
- Natural Gas—Buy puts on a two day rally.
- Feeder Cattle—Buy put spreads in November.
- Soybean Oil—Buy the 28 December put today.
- Crude Oil*—Although still on my bearish list, the trend looks to be up. Buy weakness.
* It looks like a longer-term trend change is underway.
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By Brad King, President, King Commodities