ption Trade 2/14/2020
Buy April 54 put @ 1.525
Sell April 52 put @ 1.10
Sell April 51 put @ 0.975
Total Credit $220.00 less $12.15 commissions for a profit target of $207.85
Suggested account size: $2,000.00
Targeted Returns: 10.4%
Trade duration: 73 Days Age of Trade: 34 days
Results to Date: +$107.85 = 5.39% gain on allocated margin.
Comments: Yesterday the April futures touched limit down and settled down 2.925 at 63.00 and the trade coughed up $40.00 of its gains.
We ARE looking for the seasonality high for 2020. The kill rate continues to be stronger than projected from the last H&P Report. Packers keep biding a little higher each day for the past six-days.
The carcass weights are holding firm suggesting producers still have plenty of market ready hogs in their barns.
Risk: I worry about what would happen to the price of hogs if the ASF VIRUS shows up here and exports tank. It could be a BIG problem.