NGX20-NGZ20 This bull spread has a good setup for entry. There is a good seasonality for the spread and the price is on extreme level. The usual difference betwen November-December contract months is about -0.2, so there is a huge potential. The actual price is -0.480 and SL is below the recent low -0.507.That is only 270$ risk, but very conservative PT could be -0.3, which means about 1800$. On this market 0.001=10$
Bullspread
ZMN20-ZMU20Another agresive bull spread which is currently with good setup for trade. Commercials have an extreme short positions, which means, there is not much space for further price's fall. Moreover there is a good seasonality ahead, although LTD (Last Trading Day) is 30.6. so we are quite close. In general soybean meal is a small contract, we do not risk much. I have 3 spreads myself. I am aiming with my 1.PT to -2.
HEN20-HEQ20 is about to explodeFinally i have found the correct spread to trade Lean Hogs bull spread. This seems much stronger than others and is closer to the market, which usually means bet on stronger demand in the near future. From the 15 years of history, the spread is usually trading around 2 points. There is a good potential to get to those levels again soon.
Market Recap on some tactics at All Time HighsS&P 500 and Nasdaq finished the week at record closes as the U.S. and China reportedly reached phase one deal in their ongoing trade war which includes some tariff easing and agriculture purchases. If you take a look at the S&P 500 and on the weekly perspective, the market seems can extend further than we think they can. So as a trader for now whether you look at charts or fundamentals, you got to be aware that stocks can trend higher and higher.
When the markets break to new highs, it forces retail and institutional short players to make hard decisions, decisions as should they go ahead and bail out their shorts or to make rolls on their losing trades that are bearish or hedged. For bulls, it forces them to question if they are underperforming the index as the S&P 500 gained 25% this year and their portfolio is up just 10%., and they might feel can't wait until the next pullback and should get in the market now.
( S&P 500: 3168.80 +0.01% DOW: 28135.38 +0.01% NASDAQ: 8734.88 +0.20%)
The new highs force decisions, and in some of the stocks, we can see the decision-making process accelerating like AMD which is a strong stock and getting even stronger.
So what could be the tactics behind this type of strong stock that joining the market at all-time highs? The answer could be a bull verticals, call spreads on pullbacks. How to deploy it through the trades?
For instance, let's pick the AMD's daily chart . By deploying those spreads or verticals based on the demonstrated trending logic, you need to find the most recent pullback as a support, in this case, it was on its 20 EMA line to its 39.2 level, if you think that won't hold you can also lower it to 30 EMA line which at 38.3 level. Then set these supports as your entry to target a prior record high as an exit (or simply just target a higher resistant line drawn above).
For clarifying, in options trading, a bull call spread is a trading strategy designed to benefit from a stock's limited increase in price. The strategy uses two call options to create a range consisting of a lower strike price and an upper strike price. The bullish call spread helps to limit losses of owning stock, but it also caps the gains.
In the end, traders, go and find the strongest stocks about to join this market ATH where these shorts being squeezed, follow the stronger trend to take gains and stop losses. Have a good weekend!