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Commodity Trading Discussion Forum

Re: Commodities Roundup: Corn/Stewball

Posted By: stewball
Date: Thursday, 24 July 2008, at 10:33 p.m.

In Response To: Re: Commodities Roundup: Corn/Stewball (rabbit)

That is why the straddle, think maybe the down move has some more juice, but based on the market action in the grains so far this year, if it moves down and reverses, the up move is liable to be violent, at least 1 or 2 limit moves. Could do the same thing on the downside if weather stays perfect and another fund decides to cover. Hence the slightly OTM call and put. Long or short is covered by the option. Downside to this is it takes a sizeable move to make a decent profit, however I don't go to sleep at 11pm and wake up at 4am to find out I'm in the bucket to the tune of $2k+ per contract.Other downside this is a LOT more work.
Butterflies might be an even better way, but can't figure out how without tying up to much capital.

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