10 September 2019 TUESDAY newsletter

Greetings:  TUESDAY 10th September 2019 newsletter

I made a closing purchase and bought back my short Crude Oil 35-strike PUT for 0.04 ($40).  I had sold it for 0.09 ($90), so there is a +$50 profit per option – excluding commissions.

Comment: As I alluded to yesterday, in such volatile markets as we have now, I am eager to protect profits on positions by banking them.  I closed out this DEC19 35-strike PUT not because I felt the strike was in any danger but because I wanted to bank a profit and not leave it at-risk in a volatile market.  It is my intention to sell another PUT in the Crude Oil market soon.  Crude Oil inventories are more than sufficient against current demand, and without unexpected outside influences, I expect crude to continue to range trade for the next couple of months within bounds of a $45 to $60.  DEC19 Crude is up about $3 to $57.70 since I sold that 35-PUT.  On a pullback, I will sell more PUTs if enough premium is there at the right risk level (>90% Prob of profit.)

Corn: The all-important USDA/WASDE report this Thursday at noon Eastern Time.  Corn prices are up a little this morning about 3.0 cents at 357.50/bushel.   See my comments from yesterday, if you missed them at (scroll down to commentary): SEPT 9th Commentary

Soybeans:  After the WASDE on Thursday, I might also be shopping to sell CALLS on soybeans (probably the NOV19 class.)

That is all today.  Thank you. -Don  

Don A. Singletary

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