The sugar market is doing great lately. After sugar broke out in February, it came back to test its former trendline, and successfully tested it in April of this year. Since then, sugar spot price rose +20% in a matter of weeks.

Per the chart below, the ongoing pattern suggests a rise of another 15% until resistance.

The question is how to play that 15% in a riskless way. Futures are not the recommended way because of leverage, so prudent investors would like to have a low risk strategy to ride this uptrend until $0.20 is reached.

The answer is to use a vertical spread option strategy. Although options have a connotation of high risk, a vertical spread is the opposite: low risk, high reward. We will be treating this type of strategy in one of our upcoming webinars, early July. Until then, investors can look to buy an ETF with high trading volume and without leverage, as the surest way to ride the coming 15% rise in the sugar market.