MARCH WHEAT
It in my opinion it appears MARCH Wheat can potentially rally back to 560 a bushel. Technical support and a breakout, aided by bullish crop reports indicating too much rain after a dry period and an under size crop with a substantial draw on supply . Exports are also helping as Asia and the Middle East are in need of wheat.
MARCH Wheat last as of this writing 526’2, has held the $505/$508 support area. This may open the door for a move to and possibly finishing Q1 2019 over $560 a bushel, potentially above $580 in my opinion. The MARCH 560 call is valued 12’5 = $631’25 quantifiable risk to enter the trade plus fees and associated costs per transaction and the 570 call 10’5=$531’25, quantifiable risk to enter the trade plus fees and associated costs per transaction .
For a contrarian view and downside protection the MARCH 500 Put is 12’5 = $631.25 quantifiable risk to enter the trade plus fees and associated costs per transaction, or the 490 Put is 9’0 = $450.00 quantifiable risk to enter the trade plus fees and associated costs per transaction.
MARCH Wheat expires in 108 days FEBRUARY 22rd 2019.
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