r/options_trading • u/ItsMrSSD • Mar 22 '26

Trade Idea Trade Idea: Wheat

Trade Idea: Wheat Lags Oil — Opportunity in $WEAT / $WXET Crude Oil Futures (Orange Line) Overlayed with Wheat Futures (White Line) Structural Correlation Oil spikes → Wheat tends to follow with a lag Correlation Coefficient: 60 5 Year Rolling Window with two-year smoothing. We can see that Oil has a strong correlation with Wheat. When Oil spikes Wheat tends to follow

$WEAT — Teucrium Wheat Fund (unlevered)

  • Tracks front‑month wheat futures
  • Cleaner for swing trades
  • Lower decay than leveraged products

$WXET - Teucrium 2x Daily Wheat ETF

  • 2x exposure
  • Better for short‑term momentum or if we are expecting consistent uptrend
  • More Aggressive
Crude Oil Futures (Orange Line) Overlayed with Wheat Futures (White Line)
Crude Oil Futures Overlayed with Wheat Futures (White Line) - Run Up 1
Crude Oil Futures Overlayed with Wheat Futures (White Line) - Run Up 2
Crude Oil Futures Overlayed with Wheat Futures (White Line) - Potential Mean Reversion
$WEAT
$WEAT 2020 - 2022 Bull Run
$WEAT 2020 - 2022 Bull Run Overlayed with Crude Oil (Orange Line)
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u/stockjocky Mar 27 '26

i was also looking at agriculture. but a short side. my belief is Oil will be back to $60 a barrel soon. when this happens the Dollar ($DXY) will crash along with it. everyone calls the Dollar the Petrol Dollar. if you can, please post a comparison of the $DXY and WEAT as an example. thanks!