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Market: Live Cattle futures spread

Exchange: CME

Opportunity: Buy Dec’20 Live Cattle (LE) futures @ Market / Sell Aug’20 Live Cattle (LE) futures @ Market on or before January 7, 2020.

Specifics…

Gross profit target is 125 points per spread.

Risk 50 points per spread.

Max hold time is until Mar. 22, 2020.  

Current margin requirement for this spread trade is $908.

[For example, assuming total commission & trade fees of $25 / round turn, this trade would yield a net profit of $450.00 if the trade is liquidated at the profit target. If the trade is liquidated at the risk target, the total loss would be $250.00*]

Analysis…

Technically, the trend of this bear spread has been moving downward for the last few months. Fundamentally, this trade has a seasonal tendency to move downward in conjunction with current supply & demand levels.

If have any questions or need assistance with this trade recommendation, please feel free to contact me directly.

If you don’t already have a futures trading account with Insignia Futures & Options, I invite you to open one today…

Best Wishes,

Joe Fallico

Principal Futures Broker
Series 3 & Series 30 Registered

Phone: 1-847-379-5000 ext. 101
Toll Free: 1-866-892-2030ext. 101

Insignia Futures & Options, Inc.

* Required disclaimer:
There is a risk of loss in futures trading.  Past performance is not necessarily indicative of future results.  Seasonal trades track historical price cycles and have the benefit of hindsight.  There is no guarantee that any seasonal trade will follow the same cycle as in previous years and as such, there is no guarantee of profit. The use of a stop loss order may not necessarily limit your loss to the intended amount.

 

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

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