Market Rankings for the Option Trader

10/09/2015 8:00 am EST

Focus: OPTIONS

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

  1. Lean Hogs—Hold December call options.
  2. Sugar—Look to buy weakness.
  3. Silver—Look to buy weakness.
  4. 30 Year Bonds*—Hold put options in December.  Sell OTM puts in November on weakness.
  5. Japanese Yen—Low volatility on both sides.

Bearish commodity rankings and thoughts

  1. Live Cattle—Buy put spreads in December.
  2. Natural Gas—Buy puts on a two day rally.
  3. Feeder Cattle—Buy put spreads in November.
  4. Soybean Oil—Buy the 28 December put today.
  5. 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.

DISCLAIMER: The risk of trading Futures and Options (leveraged markets) is substaintail, therefore only 'risk' funds should be used. The valuation of such may fluctuate, and as a result, clients may lose more than their original investment.  In no event should the content of this information be construed as an express or an implied promise, guarantee or implication by or from King Commodities that you will profit or that losses can or will be limited in any manner whatsoever.  Information provided is intended solely for informative purposes and is obtained from sources believed to be reliable. This is a solicitation for futures and options trading.  No guarantee of any kind is implied or possible where projections of future conditions are attempted.  Past results are no indication of future performance. King Commodities expressly disclaims all liability for the use or interpretation by others of information contained in this article.

By Brad King, President, King Commodities

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