Wheat Futures Prices Spiked Today

We are long May Wheat with our 605 Call option we paid $862 for.  May Wheat futures spiked to 644.50 before closing at 631.50 today.  The 50% Retracement level on the Daily May Wheat chart was 635.38 which was surpassed today.  Our next target is the 50% Retracement level on the Weekly Wheat chart of 748.74 (see our previous post:  Going Long Wheat Futures on Breakout)

Our 605 May Call option closed today worth $2193.75  If we were to sell this option now, we would profit $2193.75 – $862 (cost) = $1331.72 net profit.   That’s 154% ROI.  Since we still have time on this option (it doesn’t expire until 4/25/14) and there is still a lot of upside potential, we are going to hold this option a little longer.

Posted in Wheat and tagged , , , , .

Leave a Reply

Your email address will not be published. Required fields are marked *