This is a J-MAS recommendation spin off Jubinville’s relatively Bearish position on Beans and our concurrence that Canola has done most of the dropping it’s going to do. There remains another 50-75c of downside potential before a bounce but Beans are flirting with trendline support and have room to fall much more quickly than Canola and well placed Puts could add $1-1.50 to our Canola price and our Hold could add another 75c once liquidated in a better environment.
By buying Puts instead of Selling Calls we have a limited risk if Beans do go higher on a South American weather rally while Canola should appreciate in our bins into 2015.
Sent from my J-MAS iPad