Trade Tip

For anyone looking for a short term trade I am looking at corn. The September call options expire on August 21. Tomorrow

will see the monthly crop production report at 11:00 am central time. September futures had fallen to 3.07 ¼ and have

rebounded to $3.15 this morning and have pulled back to $3.13. We can purchase the 320 call options for 2.2 cents or

$112.50. There is a gap at $3.36 left from July 10 and if the number is even slightly bullish we could see a pop higher in this very oversold market.

The Trade:   Buy the Sept. 320 corn call for 2.2 cents

Protection:   Risk the Premium of $112.50 for now

Objective:    I will advise but looking for 3.36 in futures which equates to at least 16.0 cents for the option

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