May Wheat Futures spiked yesterday to close at 715.75 and moved a litter higher this morning to 723.50 before coming down a little (at the time of this post). We have been long May Wheat with a 605 Call Option we purchased back on February 12th for $862.00 and today we sold this Call option for $5681.25. Even though our target was the 50% Retracement level (on the Weekly chart) of 748.74 (see our previous post: Wheat Futures Prices Spiked Today), we decided to pocket the profits now instead of waiting.
We made a net profit on this trade of $4819.25. That’s a 559% ROI in a little over 1 month!