Market rankings for the option trader

Wednesday commodity market rankings - 1/3/18, By Brad King

Over the holidays we have seen just about every bearish market turn positive over the short term. Momentum is up in most of the weakest markets. I am not in a hurry to add too much exposure to any short positions, but giventhatgrain options are still fairly cheap. Producers and speculators might want to add some risk here.

Since our last update, the heating oil and crude have moved significantly higher. Today the obvious adjustment is to roll up in-the-money energy options to take some money off the table while staying long.

I still like positions in the Dow Jones, Nasdaq, live cattle, and cotton. These markets seem to be still be trending higher. I am looking for a momentum change in soybean meal but for now it appears to be the only grain that doesn't want to shift my momentum measurements to the positive side.

If you would like to position for long term trends in 2018, give me a call at 928-773-0472 or you may open an account HERE. Account applications can be completed at your convenience 24 hours/day.

For my market summary (covering 34 markets) with trading ideas for both hedgers and speculators, please subscribe to my free newsletter HERE.

Bullish commodity rankings

  1. Heating Oil - Roll calls higher.
  2. Dow Jones/Nasdaq - Hold long calls.
  3. Cotton - Hold long calls.
  4. Live Cattle - Hold long calls.
  5. Soybean Meal - Exit
Bearish commodity rankings
  1. Natural Gas - Roll up put options to add risk.
  2. Coffee - Hold long puts.
  3. Wheat - Roll up put options to add risk.
  4. Corn - Hold long puts.
  5. Silver - Hold long puts.

I have producer (agricultural hedge) positions listed on my newsletter. Subscribe HERE.

DISCLAIMER: THE RISK OF TRADING FUTURES AND OPTIONS (LEVERAGED MARKETS) IS SUBSTANTIAL, THEREFORE ONLY "RISK" FUNDS SHOULD BE USED. The valuation of such may fluctuate, and as a result, clients may lose more than their original investment. In no event should the content of this information be construed as an express or an implied promise, guarantee or implication by or from King Commodities that you will profit or that losses can or will be limited in any manner whatsoever. Information provided is intended solely for informative purposes and is obtained from sources believed to be reliable. This is a solicitation for futures and options trading. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Past results are no indication of future performance. King Commodities expressly disclaims all liability for the use or interpretation by others of information contained in this article.