The current situation in the pork market looks as follows:
The long-term trends are bullish in almost all the sectors of the market. If to take seasonality into account, we may count on higher production of meat. This means there will be no supply issues. Excessive supply is probable. At the same time, the overall demand seems to be stagnating. Consequently, these factors are pressing the prices and may reverse the rally for a downtrend.
This is why the Option Trading Department of Masterforex-V Academy is currently betting on the absence of growth, thereby promoting the idea of selling call options:
Optionseller (September 25th, 2013 - 19:03) said:
I recommend selling call options with strike 94 and 79 days till expiration. The premium is $240. The current price looks as follows:
At this point, every single option contract has already allowed him to make $90.
Obviously, there are certain risks. The biggest risk is the US budget and debt ceiling issue. Governmental institutions aren’t currently functioning. Therefore, there are no fresher reports on the situation in the market. If you have already opened a trade, we recommend maintaining it. Still, it is necessary to monitor the situation since there is a probability of a speculative short-term rally. You can also read for our reports that will proved updated information on the issue.
The latest report available look as follows:
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There is a sold call option. Despite the fact that the price is currently trading around the SELL price, the option is still brining profits due to time decay!
