When we were in the chat room late morning....SBUX was at the highs of the day breaking out to $23.30......those calls were up another .35-.40 cents or $40 per contract. Another huge move when you consider they were selling for a .05 a couple of days ago. MVL is up another .50 at this time. You gotta love Daredevil, X-Men, and the HULK as defensive plays right now. We need some superheroes. There were some huge blocks today on MVL along with a 100% increase in daily volume..............
I'm not sure how effective hedging would be for Starbucks. Their coffee is definitely not the same stuff the futures contract is based on. There may be some geographic overlap so that weather effects would be similar.
Interesting point. Do you happen to know what the "stuff" the futures contracts are based on? And what the difference would be between that commodity and whatever product SBUX uses? Also, I agree....no matter what, there probably IS some degree of geographic overlap. Good thoughtful and thought provoking post!! Peace, rs7
used to trade coffeee at the NYBOT. Go to their site and poke around. They might have the specs that is used to deliver against the coffee contract. There is another cofee contract in london, so do the same there. Starbucks probably puts out diff blends from diff beans from diff countries yet I assume that bean prices in the geographic areas would follow the NY prices even if they are not exactly to spec.