Hard Red Wheat can potentially strengthen further in my opinion, last as of this writing 507. News of positive trade talks with China helps but Wheat overall, separately from China news, can rally with demand from traditional wheat importers out of North Africa and the Middle East. Argentina has issues as well with their Wheat quality helping the bid. Buying the March Hard Red KEH19 Wheat 507, with a stop at 499 risk of $400, I am looking at potentially moving toward 525, $900 or potentially as high as the 200 day moving average of 534, $1350.
Consider a Call strategy buy the March 515 Call costing 9-5 = $481.25 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
Protecting the downside consider the March 495 Put cost 6-6 = $337.50 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
MARCH OPTIONS EXPIRE IN 31 DAYS 2/22/19 AND TRADE WITH THE UNDERLYING MARCH KEH19 FUTURES
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