SOYBEAN upward move play with Teucrium Soybean $SOYB trust fund
Updated
(1) Futures Technical Analysis
Bullish triangle with RSI breakout.
Enought space for bullish move.
s3.tradingview.com/snapshots/z/ZrOOwoOm.png
(2) SOYB trust fund
I've skipped the futures instrument, because I'm not like options on futures.
My choice for Soybean play is
SOYB with relative high IVR value.Optimal for Short Put Vertical strategy, similar TA here, with RSI pullback.
s3.tradingview.com/snapshots/d/dQ0kzF3M.png
(3) Clear uptrend
Higher Lows Higher Highs.
s3.tradingview.com/snapshots/i/i2sGUgwk.png
CONCLUSION:
Max profit: $685
Probability of Profit: 55%
Profit Target relative to my Buying Power: 47%
Max loss with my risk management: ~$200
Req. Buy Power: $1320 (max loss without management at expiry, no way to let this happen!)
Tasty IVR: 66 (ultra high)
Expiry: 35 days
Buy 10 SOYB May21' 20 Put
Sell 10 SOYB May21' 22 Put
Credit Put spread for 0.685cr each, because IVR is relative high.
Stop/my risk management: Closing immediately if daily candle is closing BELOW the box, max loss in my calculations in this case could be 200$. Probability of loss in this way: ~25% . No stress above $21.1 level.
Take profit strategy: 65% of max.profit in this case with auto sell order at 0.27db. Probability of profit this way: ~75%.
Of course I'll not wait until expiry in any case!
If you liked this article, check my other ideas.
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Trade closed: target reached
My best ans fastest trade in this year.Closed in auto profit.
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🌐 TanukiTrade.com 🌐
REAL option metrics for over 160+ liquid US symbols:
✔ IVRank ✔ Exp.move ✔ Delta curves ✔ Volatility Skew
⏩ FREE Newsletter: tanukitrade.substack.com
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