Feeder Cattle has a solid bid and going forward, in my opinion, can potentially rally to 151.00/151.5 area. I am looking at MARCH 2019 Feeder Cattle, 145.5 last as of this writing. Weight count per cow is 2 pounds less in 2018 than this time last year and demand is up as well, while the 2019 head count is around the same as the 2018 head count. Wet weather conditions are also an apparent factor helping the underlying bid in Feeder Cattle.
Consider buying JANUARY 2019 Feeder Cattle Call options, the 150 Call cost 1.35 = $675.00 of quantifiable risk plus fees and associated costs per transaction to enter the trade. Also the JANUARY 2019 151 Call which cost 1.075 = $537.5 of quantifiable risk plus fees and associated costs per transaction to enter the trade. For protection from a downside move the JANUARY 2019 Feeder Cattle 144.5 Put cost 1.45 = $725.00 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
JANUARY 2019 OPTIONS EXPIRE IN FEBRUARY 2/1/2019
MARCH 2019 FEEDER CATTLE IS THE UNDERLYING FUTURES
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