Optionologist Trade Wheat Call Spreads

March 21

July Wheat is giving technical signal that it may have bottomed, add that to the weather uncertainty we are seeing in the midwest, we like tis trade.

July Wheat Butterfly Call

Buy the July Wheat 500 call

Sell Two July Wheat 550 calls

Buy the July Wheat 600 call

Cost and Risk $275 plus commission costs

Profit Zone is above 506 and below 594 with 550 returning the maximum return $2500 before deducting premium and commission costs.

Please remember that spread trades are charged commission and fees per leg, per contract

This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities and/ or financial products herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily exhaustive and is not guaranteed to be accurate. Any market or other opinions expressed herein are those of the author only as of the date indicated and not necessarily those of Reliance Capital Markets II, LLC. For customers trading options, the charts included in this report are presented for informational purposes only. They are intended to show how investing in options can depend on the underlying cash and/ or futures prices; specifically whether or not an option purchaser is buying an in-the-money, at-the-money, or out-of-the-money option. Furthermore, the purchaser will be able to determine whether or not to exercise his right on an option depending on how the options strike price compares to the underlying cash and futures price. Selling options subjects the investor to margin calls and virtually unlimited risk.

The charts are not intended to imply that option prices move in tandem with cash and futures prices. In fact, option prices may only move a fraction of the price move in the underlying assets and/ or futures. In some cases, the option may not move at all or even move in the opposite direction of the underlying asset and/ or futures contract. Past performance is not indicative of future results.