On 12/11/13, Corn closed above the #2 point on the Daily March 2014 Corn Chart (see below). The closing price on 12/11 was 439.25. As of 12/12, Corn opened at 430 and we bought 1 March 2014 Call Option at a strike price of 445, which is 3 strike prices out of the money, for 8.75 (cost of $437.50 – 8.75 x $50/cent). This option expires on 2/21/14.
Prices moved as high as 439.75 before dropping back down. Over the next few days/weeks we will watch this Daily Corn Chart to see if prices continue to trend higher. Our target is the 50% retracement level of 468.