Spec trade: Sell 1 July Mini-Chicago wheat at 10.80 OB with no stop

Our recommendations are always based on a $20,000 balance. We are selling one July mini-Chicago wheat with the intent if it goes up another dollar, we will sell another contract. This price rally is not sustainable. Options are way too expensive to even consider puts.

Everybody is used to getting pushed around $1000 in a soybean contract every 20 minutes. Selling mini-Chicago wheat and scaling up is doable to capture the next sharp move which will be the retreat of the present advance which is inevitable.

This means if you sell a regular Chicago wheat contract it needs to be in a $100,000 account for one contract. This is the only way to sustain a trade like this, and it is to take the heat out of the kitchen. If you can’t take the heat, get out of the kitchen.