Greetings: 27 MAY 2020 Wednesday
Crude Oil has been see-sawing over the last week; the AUG20 Futures at midday today trading at 33.74 -1.04 per barrel. I want to sell some Crude Options farther out in time soon but I’m waiting to see if/how much enthusiasm the market adds to the price of oil over the next couple of weeks. I am still very reserved on the idea of selling any Crude Oil PUTS at this time – because of the recent dips in price to minus value near earlier contract’s expiration. There is still a lot of oil in the ocean in transit. The new weekly Crude Oil stocks report that usually is on WEDNESDAY is delay until tomorrow (Thursday) this week. see: https://www.eia.gov/petroleum/supply/weekly/ to read that report.
Corn: Corn stocks are projected to rise significantly, while any signs of new and positive trade development between the US and China are not expect, especially with the unrest in Hong Kong which strains relations between the two countries.
There is likely to be a good chance to sell CALL options on Soybeans this summer. Stocks are up, trade relations / tariff negotiations outlook is poor for any positive developments.
Gold still near $1700 per ounce. Any positive signs on the Q3 and Q4 USA economy would be an opportunity to sell far OTM CALL options.
At this time, I feel there is too much uncertainty of economic developments over the next weeks ahead, to take action at this time. Next week, I will post some option prices to study and take a closer look. I’ll be looking at more Crude CALLs, and some corn options out at harvest time in the SEP and DEC20 futures.
Thank you. – Don Singletary
If you would like to visit a sample of Day Trading the new low cost Micro E-Mini Stock Index Futures, here’s a recent video on the channel:
To see the Amazon listings, Table of Contents, and book descriptions, please click on the Cover icons below. Thank you.
The commentary and examples are for teaching purposes only and are not intended to be a trading or trade advisory service. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein on the web site and/or newsletter, are committed at your own risk, financial or otherwise. Trading with leverage could lead to greater loss than your initial deposit. Trade at your own risk. Investors and traders are responsible for their own investment/trading decisions including entries, exits, position, sizing and use of stops or lack thereof. This is not a trade advisory service and is for educational purposes only. The content on the pages here is believed to be reliable - but we cannot guarantee it.