DBA

We blogged about our interest in the out of favor agricultural play.  We added more October 28  call options on the DBA today. We now have both October and January 25 2014 call options  It’s a cheap play on a drought this year.  It could double or even quadruple if we have a drought again.  Right now the Agricultural Department is forecasting bumper crops and the price of grains is near a 52 week low.    Investing in climate change used to mean financing the fight against global warming. Morgan Stanley, Goldman Sachs Group Inc., and other firms took stakes in wind farms … Read more

We are setting up a large buy in agricultural commodities. There is nothing quite like the global demand for food as a long term trend.  The DBA is a good way to express bullish interest in the trade.  Some time in the next six months this is a high probability trade.