Buy SV (October dated) 1300 puts for 7 to 9 cents on a short spec trade.
We never got the rally overnight up to 87 to sell. I like risking 350 to 450 bucks a contract to have unlimited upside for the next 14 days.
Pure and simple, its a fade trade. Fading the funds that are still long. Fading the weather bulls looking for hot and dry or an early frost.
Those bulls may well be correct. I just thing there are too many of them, so I want to fade them.
Worst case? You lose the 450 bucks a contract. Best case? What if beans break back down to 12.00? Just 3 weeks ago we were at 11.60… If that happens in the next 14 days, your 7 1/2 cent bet is worth over $1.00
Have a great weekend.
CER