Market rankings for the option trader

Thursday commodity market rankings 3/21/19, By Brad King

Well it has been an interesting several months in the commodities sector. For those looking for long term trends, the most easily identifiable has been live cattle or perhaps coffee. As I write today, we are on the highs again in cattle and near the lows in coffee. Over this same period, we have seen natural gas go from first to worst while crude oil/RBOB gasoline has arguably gone from weakest to strongest.

So what next? If following my newsletter and long cattle, short coffee, or long the Nasdaq, reduce some exposure today. I would also recommend adding some exposure to short wheat, and/or long soybean oil.

For cattle and hog producers you can roll up your protection. It has been a significant run and prices look good.

RBOB gasoline is new on the bullish list today but recognize that a pullback can occur at any time. I would look to buy weakness but do so with some patience for now.

Would you rather trade long term vs short? Options instead of futures? Why wait...Open your accountHERE.

Give me a call at 928-773-0472 if you have questions regarding my ideas or would like to discuss my services.

Bullish commodity rankings

1. RBOB gasoline - Buy weakness.

2. Live cattle - Roll up long calls or call spreads.

3. Silver - Hold long calls or spreads.

4. Soybean oil - Roll down long calls or spreads.

5. Nasdaq - Roll up long call spreads.

Bearish commodity rankings

1. Natural gas - Hold put spreads.

2. Coffee - Roll down puts or put spreads.

3. Wheat - Roll up puts or put spreads.

4. Feeder cattle - Hold long puts.

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Happy trading.

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