This post was last updated on January 23rd, 2021 at 05:37 pm
Buy Pork Bellies, How to Trade Pork Belly Futures online, and What Are The Cheapest Exchanges That You Can Purchase These At?
Pork Bellies and exactly how one can go and buy pork bellies, let alone what these things actually are, are all very interesting and important concepts in the field of finance. Personally, it took me awhile to really understand what a pork belly future even was, of why people use them, and of especially why they are so popular. For those reading this that are not sure what a pork belly future really is, pork bellies are futures on the prices of meat, namely pig meat, and namely the belly of the pig, which is known as a pork belly. It is a very commonly thrown around word in the field of finance, and typically the belly of the pig is even used for making fatty cuts of meat, such as bacon and pork chops. If you’ll look at the diagram in my featured image of this post, you’ll even notice that the parts of the pig are highlighted, and that the pork belly is often the juciest, fattiest cut part of the meat. More on the betting and futures markets of a pork belly later in the article. For more information, be sure to subscribe to our blog for daily blog post updates, and to comment down below with your thoughts and opinions.
Other popular futures markets include:
Pork Belly Futures Markets
Presidential Election Futures
S and P 500 Futures
crude oil futures
Precious Metal Futures such as Gold, Copper and Silver Futures
And a host of other commodity and precious metal related futures, subscribe for more information!
Why Pork Belly Futures Hold a Special Place in My Heart, and How to Buy Pork Bellies At a Significant Discount on Options Exchanges
If you’ve ever had this thought too, while you’re looking at that grand picture of a hungry looking pig and her piglets in the image above, I’ll let you in on a little secret. Many of us reading this blog post have probably heard the phrase “they’re pigs” when referring to investors that aren’t very well educated, or of who defer to the opinion of the masses. I was once in my Investment Principles class back when I was in college and someone asked the teacher “why do they call them pigs,” to which the teacher responded “because pigs get slaughtered” so that’s the answer to that question.
Now on to the commodities section of this blog post, as stated in the former, pork bellies are cuts of pork, usually fatty cuts that come out of the belly of the pig, which are traded on quite often. You can actually purchase pork belly options, or pork belly futures contracts at common exchanges, all of which must be accredited by the CBOE, the Chicago Board Options Exchange, and of which usually include the following:
And a host of other exchanges. Buying Pork Bellies, is typically a technical analysis play, as I personally, have never seen something like fundamental analysis being done on piglet, pork belly futures, in that how the heck are you going to conduct a proper financial statement analysis on pork belly futures? Find me a 10-K report for a pork futures contract, that is not from something like a blue chip or penny stock related pork stock, and we’ll talk, leave a comment down below if you find one. Back on to the topic, Pork Belly futures are very often traded in the options exchanges of the above banks and markets, and typically you’ll need something like a Series 3 License, the license needed for commodities markets, in order to sell something pork bellies, or to buy pork bellies and pork belly futures.
One other thing that I wanted to add before wrapping up this blog post is a joke that my boss once said to me my first day interviewing at the current Wealth Management firm that I’m working at right now. The two managers were asking if I knew what the company did, to which I answered yes to, that they did investing, financial planning, and in primarily safe, blue chip stocks, mutual funds, and other various financial instruments, like safer annuities and insurance products. This was the correct answer, but when the one manager came over to the other manager, he made a joke about it, saying “hey he said he thinks we do day trading here,” to which the other manager replied “yes that’s what we do, day trading, pork bellies, writing naked call options, etc.”
There’s a reason this its sometimes the butt of a cruel joke in finance, and it’s that this is not a very well respected product in the finance world. To keep short how much people usually don’t like this product in the wealth management and financial planning world, they generally don’t even sell this type of stuff at most of the bigger firms, and anyone that wants to transfer this type of stuff in has it flagged, tracked down and unable to move it. If you are going to be moving pork belly futures, or any type of futures, options or derivative contracts for that matter, first off, never put in more than you can afford to lose, and when you do put into this type of financial product, pretend the money is essentially gone and that you’ve lost it already. And secondly, seriously consider your risk tolerance in this financial product, if all the financial advisors in the US are not trading these products for themselves or even recommending them to their clients except for in extreme circumstances, than maybe there is a good reason why this is the case…..because typically these are a losers game.
Final Thoughts on Buying Pork Belly Futures, and Why Generally I Am Going to Caution You Against This
While trading pork bellies might be fun, you are seriously 1 in 50,000 if you can make something work trading commodities like this. I generally caution against technical analysis, with the exception of doing something like using leverage to hedge a portfolio against your downside risk in the case of a market downturn, much like the 2020 collapse that we are in right now. In this current market time period, I would actually be adding Put Options to my portfolio on the S and P 500, which is still technically considered diversified, albeit leveraged. Have any thoughts about pork bellies, or trading pigs as a commodity? Like what you learned from the article? Subscribe to our blog for daily blog post updates, or comment down below with your thoughts and opinions on the article and we’ll get back to you within one business day with a response.
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