jimbo61

Here is a way I occasionally will DayTrade an Option play. I look at the opening price and setup a dual Fibonacci w/ extensions on the previous closing price to the opening range rebound (usually 10-15 mins from open). I will then look to buy in the direction of the 50% line breakout, Call if breaks up, or Put if breaks downward. Use the Fibs Extention for exit targets. Today's example worked , but you have to be on top of things.It will turn on you quickly. Bought a 560 call on the breakout at 4.2. Closed it after it passed thru the +61.1% extention level. (out at 5.2). [/img]

Most of those margins are set by the broker. I can tell you that my broker has a margin for Soybean spread of $1250 per contract. I have a free delayed chart site that you can go to for lookup of the spreads. INO Charts and Quotes You have to dig around, but they have charts for the spreads along with the actual futures.

I new to this forum, but not the "Grains". Here is some more food for thought on the Beans. Look at Spread Trading "Old Crop/ New Crop". I am setting up for the next run on the SN10/ SX10 once I see the seasonal lows kick in on the Seasonal Charts. Just for an example, last years Old / New crop in beans was pretty profitable. Late Dec 08 the Spread was near the ZERO line. By first week in July it was up in the 200's. That is $50 per point, per contract. Nice run. Hope to do it again.

I have always had good luck using the DMI. The D+ and D- lines will show you the trend direction, while the ADX line show you the trend strength. I will NOT enter a trade until the ADX line is (1) below 25%, (2) flat or riseing upward. Put this on a chart (greater than 5 min) and look back and see what it tells you.