By admin       2018-03-07

Cotton prices have been trending higher, driving up call premiums. But the tables now appear ready to turn. Cotton prices have been a prime benefactor of growing world economies and overseas demand. Since a post harvest low back in October, cotton prices have rallied by nearly 12%. This has helped inflate call option premiums in the cotton market nicely. But with spring approaching, anot-so-bullish supply outlook taking shape, and now at least the possibility of import tariffs on US cotton from some nations, cotton prices could soon be facing headwinds. Fundamentally, it's what we would deem a solid set up for a call selling approach.

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