Best way to short Orange Juice

Discussion in 'Commodity Futures' started by yabz, Sep 3, 2018.

  1. yabz


    Shorting the futures contract is too much risk for me. I could buy a put option but there is the problem of time decay. There doesn't seem to be an ETF.

    Any thoughts?
  2. maxinger


    If you can't handle futures contract, suggest you don't touch option.
    Do not assume options are safer than futures.
    There are more variables to consider like those greeks.
    And if you don't understand those greeks and the various options strategies,
    you are taking even greater risk.

    For futures trading, you can set Stop order to limit your loss.
  3. CANE
  4. yabz


    Thanks for the replies.

    I actually meant Orange Juice...sorry about that....Is there any way to change the title of the thread?

    Regarding using Stop orders, I use a trend following strategy which critically depends on riding out some losses, so stop orders wouldn't be ideal. I could perhaps sell a vertical spread. The greeks for both legs would be the same so cancel each other out. The only problem is the buy/ask spread is quite wide and could wipe out much of the profit....
  5. check out their volumes and see if you want to go into that. When I was at the NYBOT, even locals don't venture there because of illiquidity. I don't know how it is now off floor but...
    yabz likes this.
  6. maxinger


    you are right mister.
    volume is probably few hundreds a day.
    I wouldn't touch such futures.
    yabz likes this.
  7. dennisa


    Reformed Trader, comagnum and treeman like this.
  8. treeman


    Isn’t that how Mortimer and Randolph Duke made their money?
  9. treeman


    Btw, my time in lumber concurs with your observation. That shit limits up and down and you can’t move. I’m going to exit my lumber position tomorrow because it’s jist not worth it anymore (even though I’ve made over 100 pts on it)
    Reformed Trader likes this.
  10. i honestly don't even know why these contracts exist. When they went off floor I was hoping that having thousands of eyeballs that can trade product vs. locals will make the volume grow organically.It would've been nice to see after x years of being on-screen oj, lumber, coffee,etc go from x open interest to 10x that since these commodities would be good as part of a non correlated portfolio.
    #10     Sep 4, 2018
    Reformed Trader and zdreg like this.