March Corn Option Strategy

Peter OriGrains

Corn fundamentals point to higher prices in my opinion. Demand has risen, shipments are higher, while planting has fallen and farmers in the US in some areas, because of rain, hail and snow have lost their crops, which have been knocked down so harvesting equipment cannot harvest resulting in lost bushels in some areas. The market is a long ways off in knowing Southern Hemisphere corn production as planting continues.  Strong demand for US corn plus unknown crop sizes elsewhere keep this market bid in my view.  Buy dips. March Corn as of this writing is last at 384-4. In my opinion Corn can rally to 400/410 area.

Call or email me for ideas but I will share some simple trade ideas below.

MARCH CORN OPTIONS EXPIRE 2/22/2019 74 DAYS TO EXPIRATION.  UNDERLYING FUTURES ARE MARCH 2019 CORN.

Consider buying Calls on March Corn, the March 395 Call cost 7-3 tics =$368.75 of quantifiable risk plus fees and associated costs per transaction to enter the trade or the March Corn 400 Call cost 6-1 tics =$306.25 of quantifiable risk plus fees and associated costs per transaction to enter the trade. For downside risk protection, the March Corn 375 Put cost 6-0 tics = $300.00 of quantifiable risk plus fees and associated costs per transaction to enter the trade.

Buying futures here with a stop at 377-5, targeting 395 to 400/410 is also a consideration in my opinion.

To discuss any strategies feel free to call 888-391-7894 or email me peterori@walshtrading.com

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