The WN 700 put purchased for 20 cents is now trading at 33 as of 9:07 AMCST.
The SN 1400 put is back to being worth 10 cents after paying 13.
The CN 5.00 put purchased for 10 is trading at 15.
The funds are long 160K beans and 260K corn. In my opinion, the rubber band got stretched way to far to the bull side.
A sharply lower settlement today could set off another 2 days of liquidation. Unlike most speculative traders, professional fund managers do not hesitate to exit losers.
Its early in the day, but if you have more than 3 of each of these puts in place, I’d sell 1/3 to make the whole trade worse case a push, while leaving the upside profit on these puts completely open.
I continue to look for the Stock Indexes to grind higher until we get a 2000 print in the June S&P and a 17000 print in June futures.
At that level, I’d be looking for Resistance, but at the end of the day, new highs might bring out everyone who has been sitting on sidelines not owning stocks. That new money flow, if sustained, could drive these indexes to new highs.
CER