Hello traders, I tried to look other than the crowded trades of these days (gold and oil) and I came up with cotton. The price held very well the multiyear dynamic support. Also, COT signals that producers almost closed all their short, meaning that they think not to need an hedge against falling prices for the moment. That is a very bullish signal to me. It is a risk, but well rewarded.
C 65 June 20 cost 200usd
TP1 = 65 TP2 = 72 (3750payoff, meaning a 19x) SL = 100usd on the option value
Trade aktif
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After a few days in which the price almost hit the SL level, cotton seemed to finally start its upward movement.