The Hog market has been steadily rallying for the last few months. We have recently tested and supported out above the rising trend line support line on the chart below. This rising trend is expected to continue and a move into the 70’s is the target for the next leg up.
click on the chart to enlarge
Buy one April 2007 Lean Hogs 68 call while selling one April 2007 Lean Hogs 72 call for a combined cost and risk of 100 points ($400) or less to open a position.
Max profit, assuming a 100 point fill, is 300 points ($1200) and occurs with Lean hogs trading anywhere above 72.00 at expiration. Break even point is 69.00.
Max risk, before commissions and fees, and assuming a 100 point fill, is $400. This occurs at expiration with Lean hogs trading below 68.00.
Odom & Frey
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