 | | 5 Hot Picks by Matt Johnson of Target Futures |
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 In the futures industry since 1996, Matt Johnson got his start working with retail clients. In 2000 he established Cytrade Financial, L.L.C., and independent introducing broker registered with the CFTC and NFA member. Matt manages the firm and offers his brokers and clients trading suggestions primarily using futures options. For more information on Matt's trading, please visit www.targetfutures.com. |
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The dollar has had impressive gains against the Euro in the past couple of weeks, but I think it's time for a little retracement. In the September options, I like an ECU8 151/154 Call spread for about 75 points ($937.50) with a 4:1 risk reward ratio. You can sell an ECU8 145 Put for about 35 points to help pay for the trade.
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Look for more declines in the crude oil market in the coming weeks. In the October options, I like a CLV8 105/100 Put spread for about 100 points ($1000) with a 5:1 risk reward ratio. You can sell a CLV8 140 Call for 100 points to pay for the trade.
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Big report Tuesday morning in the grains that could send corn much higher or much lower. With 12 days to go until expiration, September options are the best way to play this report. I like buying a CU8 510 Call/480 Put strangle for approximately 27 cents ($1350). Usually I'm not a big fan of this strategy, but because we are so close to expiration and have a potentially volatile market event, I think this is a winner.
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This is a very similar trade to my September corn recommendation. In the September options, I like buying an SMU8 340 Call/300 Put strangle for approximately 12.00 ($1200). Soy meal options are the best way of playing the soybean market in my opinion.
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| August index options expire this Friday. I'm still seeing last week's strength as a selling opportunity and am looking for weakness coming into expiration day. I like an SPQ8 1280/1265 Put spread for approximately 3.00 points ($750) with a 5:1 risk reward ratio.
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| | 5 Hot Picks by Lee Gaus of EFG Group |
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 Lee Gaus has thirty years of experience in the commodities industry. In 1992, Lee established EFG Group along with his two partners who are long-time friends. Since then, Lee has traveled the U.S. conducting seminars and trading meetings for retail traders and commodity offices. |
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Very oversold waiting for a technical corrective rally to sell again. Aggressive traders can consider selling around 8975, while more risk adverse traders might want to wait for a large pullback to the 93.60 range. It will take a Friday close above 102.98 to reverse my model back to bullish.
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Very oversold waiting for a technical corrective rally to sell again. Aggressive traders can consider selling around 9384, while more risk adverse traders might want to wait for a large pullback to the 9550 range. It will take a Friday close above 1.0034 to reverse my model back to bullish.
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Oversold, but not to the level of the currencies. Aggressive traders can consider selling around 328, while more risk adverse traders might want to wait for a large pullback to the 360 range. It will take a Friday close above 596.10 to reverse my model back to bullish.
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Dec Wheat/Dec Corn Spread
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Buy Dec Wheat/Sell Dec Corn as a spread. I am looking at putting that spread on around a $2.30 premium to the Dec Wheat. It will take a Friday close below .68 to reverse my model.
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Dec Wheat/Nov Bean Spread
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Buy Dec Wheat/Sell November Beans as a spread. I am looking at putting that spread on around $5.50 under Dec Wheat or a 5.50 premium to the November Soybeans. It will take a Friday close above $9.99 to reverse my model.
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