Taking Profits in Lean Hogs

June Lean Hog prices dropped as low as 115.925 today before bouncing back up to ~117 at the time of this post.  We were short Lean Hogs with a 1200 strike price Put option we bought for $1040 (see our previous post: Shorting Lean Hog Futures with a Put Option).  Today we sold this option for $2400 and exited the market, since our target was the 50% Retracement Level of 115.50 and prices almost touched that level today.

We profited $1360 in 6 days with this trade – a 131% ROI!

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