OJ/ Coffee Random Musings

Discussion in 'Commodity Futures' started by criveratrading, May 28, 2008.

  1. I am happy about your cocoa, I wish I would have put positons on at 2500 and held! What do you think it does now?
     
    #111     Jun 11, 2008
  2. short sep at 136.10
     
    #112     Jun 12, 2008
  3. riv I'm not as experienced as options as you are, i've never sold or bought a butterfly or condor for that matter. I'm going to read up on it
     
    #113     Jun 12, 2008
  4. stopped at 137.10 market is slowly creeping up, roll activity i suppose? Bids aren't being hit very well today, may try and go long
     
    #114     Jun 12, 2008
  5. Wow super huge vol in oj market!!! I want to be short vol but am not really sure where oj is headed in the short term.......for the options expert how can I short this vol while having very minimal directional risk?
     
    #115     Jun 12, 2008
  6. Another thing you guys might want to check out is putting on an oct 10.00/11.00/12.00 sugar butterfly. Looking pretty good right about now.
     
    #116     Jun 12, 2008
  7. got short 1 at 137.00 trying to get another if i can today. If not I'll retry tonight
     
    #117     Jun 12, 2008
  8. Shagi

    Shagi

    Coffee breaks out tomorrow at last - on the upside - look out for a major run up to 20000 in the next 3 months - Im long at close 13700 Sept 08
     
    #118     Jun 12, 2008
  9. shagi there is a distinct possibility that you I sold you the coffee contract that you bought :) Ha ha I've got very tights stops and might just dump on the open, don't have the best feeling about it. Anyways what else is going on? selling a dec 7.50 corn straddle looks good
     
    #119     Jun 12, 2008
  10. With September OJ at 117.35 you could

    Sell 115 put for 645 pts
    Sell 115 call for 880 pts
    Buy 105 put for 255 pts
    Buy 125 call for 505 pts

    -------------------------------
    net credit 765 pts

    max risk= diff b/w strikes less credit . 1,000 pts - 765 pts = 235 pts


    breakeven points 107.35 / 122.65

    max gain= 765 pts

    this obviously just based on settlement prices. If you get executed on this, let me know. I would think that if one goes "to the market" on a spread like this you'll get raped.

    Same idea as that coffee spread where it seems it makes more sense, from a risk/reward perspective , to sell the spread.
     
    #120     Jun 12, 2008