Playing Commodity Prices
Add DBA Calls
Dear Bottarelli Research Member,
Today, we’re going to take advantage of the sell-off in soft commodities. The crop report was semi-bullish for higher prices moving forward, as soybeans, cotton, wheat, and rice all had bad crops. Since China exports about 50% of the soybean harvest, I feel very good about adding long exposure going into January.
To capitalize on higher prices, we’ll use the DBA January 36 Calls (DBA AJ), which are currently trading between $1.40 and $1.60 per contract. I think there’ll be a lot of noise coming into soft commodities by November, and if I’m correct, we could easily see a quick double. Here’s the play…
PLAY: Buy the DBA January 36 Calls (DBA AJ) at or under $1.50, good for the day.
Sincerely,
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