Seeking Alpha
  • J Mintzmyer
    Anyone here do any trading on $CORN or $WEAT? Seems like the former could be a good vehicle to write call spreads on...?
    May 9, 9:59 PM
    Reply (9)
    • User 8843871: J Mintznmyer..the usda report always has a few suprises and the market usually over trades either direction after the release of the numbers
      May 10, 1:29 PM
    • User 8843871: much debate is out there regarding the usda's validity in terms of accuracy so one must use caution with just trading the lastest report
      May 10, 1:29 PM
    • User 8843871: estimate. Anyway, it will all come down to one factor most likely: the weather....and this cannot be predicted or manipulated.
      May 10, 1:29 PM
    • User 8843871: I have traded the $CORN but not the $WEAT so my perspective is from the corn side. I like your strategy but the spreads are wide.
      May 10, 1:29 PM
    • User 8843871: Possibly taking advantage of the volatility is one good way to earn some cash. I would prefer to write call spreads on something that
      May 10, 1:29 PM
    • User 8843871: would pay me to wait as well....good luck...
      May 10, 1:29 PM
    • J Mintzmyer: My thought was that the underlying will lose value naturally just due to rolling backwardation similar to the $VXX deterioration affect.
      May 10, 7:41 PM
    • J Mintzmyer: I have no thoughts on the short to medium-term price of corn, but long-term I know we are in a MAJOR bubble due to QE and ethanol.
      May 10, 7:42 PM
    • J Mintzmyer: Seems like selling atm calls could be a steady profit machine unless we had another '12 style drought, which is why I'd do spreads.
      May 10, 7:43 PM