DBA agricultural commodities.....can they get much cheaper?

14 июл. 2018 г.

I bought a call vertical today in an agricultural E.T.F. as a way to get a cheap hedge. Assuming if inflation rises or supply gets disrupted for some unknown reason. I am a little unclear of the cost to carry of the futures that it holds and was unable to write cash secured puts in my Fidelity SDA as I was told it was structured as an M.L.P. (master limited partnership) So I paid 1.32 for the 17/20 call vertical out to January 2020, as there was no other way to get long this name without tying up too much money and I.V.R. was low (24ish %) Not sure I needed to go out that far but moves really slow and is not a product I am very familiar with so staying small. SosGrande did trade some through the Bob the Trader app so I am hoping this would be a good entry and I have plenty of time. Dollar strength seems to be weighing heavily on this as well......but I will now be more interested in watching what tends to move these products as I have money on the table. Wish me luck.

20 нояб. 2018 г.

Заметка

This trade has gone literally nowhere fast.....still way out in time and even with markets selling off and a hint of inflation agricultural commodities are stagnant.

30 нояб. 2018 г.

Заметка

Closed this trade out for a .21 cent loss. Man this thing was not much of a hedge. Moves like molasses on a cold winter day. Maybe if T and Xi hash things out this weekend it would recover but the strong USD is just crushing this trade and I am liquidating some positions to transfer funds into my Roth IRA.