Time to get LONG DBA on Unusual Options Activity

PowerShares DB Agriculture Fund (DBA) is an investment trust that invests in commodities. Shares of DBA are trading around $27.70 in a 52 week range of $24.04-$27.86. DBA has been under performing the market over the past year with shares rallying only 5.6% in the past 12 months. Despite its relatively lackluster performance options action in DBA during today’s trading session has been decidedly bullish. Earlier in today’s trading session a trade bought 1,261 DBA Apr 27 calls for $1.05. This is a very bullish trade that also represents volume nearly 3.5 times the average daily option volume in DBA. With shares of DBA trading well above the Ichimoku Cloud and the future cloud sloping upward the chart is suggesting there can be further upside in DBA. We believe this order flow and chart set up is a great signal for a long in DBA.

James Ramelli

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