Today Christmas Cotton spiked down to fresh 7-month lows. December Cotton has lost 1/3 of its value from it Jun 3rd high at 140.90 down to today’s 7-month low at 94.46. In my opinion, its time to buy some cheap calls. Look at a December 118 calls or 123 calls. If you buy those, you are betting on a pull back 1/2 of the sell off.
A December cotton 118 call is 2.50 or $1,250.00. A 120 call is 2.25 or $1,125 dollars.
Its a good speculative play for the next 116 days.
On a separate note, the cash Dow held tough at 12,300. I like being long against that low.
That’s about it.
CER