Commodity Futures: Playing The Grains & Orange Juice Markets

by Lee Lowell, Advisory Panelist

I’d like to focus today’s segment on the markets that typically see heightened activity during the summer months, due to the fact that it’s their prime growing season.

Specifically, that means the grains and orange juice markets.

As we’ve mentioned before, these products are heavily dependent on the weather for their yield. So if erratic weather patterns affect the crops’ growing cycles, it’s very likely that their prices will rise.

These products aren’t just consumables either. The farmers and food/drink companies that are front-and-center of their production use these markets for income production, too. They do this by using commodity futures and options contracts as hedging mechanisms.

So let’s hit the grains market first…

How To Play The Grain Market Upside With Commodity Futures

A few weeks ago, we keyed in on corn and wheat, stating: “Most of the

Covered Calls: Five Steps to Make Profitable Option Trades

by Karim Rahemtulla, Advisory Panelist

The mainstream “press” does not want you to pay attention to option strategies such as covered calls.

There is a conspiracy here - and it’s meant to keep you ignorant to a sector of the market that just doesn’t fit in with the “buy stocks and mutual funds” mantra that makes Wall Street money.

You see, there are no upgrades or downgrades for covered calls, LEAPs, or puts.

It’s because most mutual fun managers can’t see beyond what they have been taught, which has predominantly been to “buy stocks.”

Sure, they’ve heard of options and even know how they work, but they are scared of showing options on their portfolios because the “Average Joe” that invests in mutual funds still looks at options with tremendous skepticism.

They’re dead wrong.

The options market was created for professionals and institutional money managers,

Using a Put Selling Strategy: A Step-By-Step Lesson On Selling Options

by Lee Lowell, Advisory Panelist Stock and Commodity Analyst, Mt. Vernon Research

Let’s say you’ve been interested in buying Microsoft stock and you feel $20 is a good price to pick up some shares. It currently trades at $23.50 per share, so you’ll need it to fall in price a bit before getting filled on the trade.

Most stock traders would just put in a “limit buy” order to buy the stock if/when Microsoft falls down to $20 per share. But there’s no guarantee that Microsoft will ever fall to $20 per share, and there’s no one paying this stock trader upfront for his time while they wait to buy Microsoft at $20…

That is unless you’re using a put selling strategy…

As an option trader, you can take the transaction one step further by selling a Microsoft $20 put option

Right now, bunches of savvy investors are getting paid cold, hard cash for nothing more than agreeing to buy stocks. Investors are giving them money to buy stock that they were looking to purchase anyway. Sound crazy? Well it isn’t

There’s an incredibly profitable, but little-known trading and investment strategy that you will come to love as much as I do because of all the “instant cash” it can generate for you.

In the lucrative world of options trading, this strategy is called “selling a naked put option.”

Sounds sexy, and to some it is, but really it’s an incredibly simple way to buy stock you want to purchase at a specific price - while having someone pay you to do it. It’s easy to do but there are a few things you need to know first…

Here’s how you can use this powerful options strategy to get paid for buying stocks.

Understanding Put Option Contracts

If

Selling Naked Put Options: How to Get Paid to Buy Stocks

by Lee Lowell, Advisory Panelist Stock and Commodity Analyst, Mt. Vernon Research

Right now, bunches of savvy investors are getting paid cold, hard cash for nothing more than agreeing to buy stocks. Investors are giving them money to buy stock that they were looking to purchase anyway.

Sound crazy? Well it isn’t.

There’s an incredibly profitable, but little-known trading and investment strategy that you will come to love as much as I do because of all the “instant cash” it can generate for you.

In the lucrative world of options trading, this strategy is called “selling a naked put option.”

Sounds sexy, and to some it is, but really it’s an incredibly simple way to buy stock you want to purchase at a specific price - while having someone pay you to do it. It’s easy to do but there are a few