Walsh Soybean Oil Opportunities - Pure Hedge Division

December soybean oil has been acting strong, reversing off the 64-cent low from mid-June. Soybean oil has the potential to continue moving higher due to a tight global and domestic vegetable oil market and volatile energy markets. December soybean oil is trading above the 14, 21 and 50-day moving averages and is not far from the previous high at 74.55. Managed money held a net-long position of 113,000 contracts of soybean oil on Friday’s Commitment of Traders report. The next leg higher may just be getting started…

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RSI: Neutral

Stochastic: Buy

14-day high: 73.11

14-day low: 64.63

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Consider the following trade opportunities:

 FUTURES SPREADS

December’26-July ’27 

Long December Soybean Oil and short July. 

PRICE: 2.52

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December’26-March’27 

Long December Soybean Oil and short March. 

PRICE: 1.2

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OPTIONS

December’26 Soybean Oil – 72.82

Buy 1 Dec’26 74.00 Call 3.31 ½ 

Sell 1 Dec’26 84.00 Call 0.89

Sell 1 Dec’26 68.00 Put 1.64 ½ 

Buy 1 Dec’26 58.00 Put 0.19

Price: 0.97

Cost: $582/Trade Package, Plus Fees and Commissions 

December’26 Soybean Oil Options Expire 11/20/26 (121 Days) 

Maximum Loss: Limited

The trade above is buying a call spread and selling a put spread to help finance it. 

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Hans Schmit

Broker, Pure Hedge Division

Direct: 312-765-7311

hschmit@walshtrading.com

WALSH TRADING INC.

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.

Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.