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YT - I like your coffee put spread. 4x reward/risk. Settled at 240pts. Question is: Do I have any edge/value added in saying Coffee breaks down?

Yep Rtrad, I'm a broker , institutional. Good trading the range in the coffee. Might as well while the range holds. Hopefully your back month cattle will settle down. YT - what was the bid/ask on that spread on the floor then? How the rest of your positions looking? Rtrad...

guess it's a no no in US listed mkts In some cases, the executing broker may have sufficient order flow from its clients that it is able, where permitted by law, to execute client orders internally by matching a buy-side order from one client with a sell-side order from another client or vice...

from MF's 10k. note section on Principal trading... When we execute a client order on an agency basis, we typically direct the order to an exchange or OTC market where it is matched with a corresponding order for execution. When we execute a client order on a matched-principal basis, we take...

Major quality concerns out of Ivory Coast, supply deficits, and a very nice technical graph, sure, screams long. But I prefer to get long preemptively into the breakout and when it goes parabolic take profits. To think that at one point I had a 1,600 call option on this sucker.

Yep, that's exactly what I'm insinuating. Methinks these broker desks which ultimately are subgroups within the futures brokerage, can dish out flow to whoever they want to use. If who they are using a proprietary market makers then in fact you are trading against their book and if they can arb...

On another note MF global stock got killed. That 1bln + bank line coming due in December got people spooked and a 150mm convert deal ain't gonna do much to patch up that refinancing gap. Revenues looked crimped too but what I don't understand is that they cite tighter interest rate margins. I.e...

Got lited out of my cocoa spreads today at 69. It was a good trade, but in retrospect probably should have constructed it in a nearby month. 45 days an eternity and adjusted for volatility, figured best to take profits. Interestingly though, 2*2 of my spread traded on ICE at 75 pts. So...

Cocoa felt tired indeed. What could suck is that we could see a pretty vicious pullback and still keep the uptrend intact. Rtrader, where's your stop in Coffee?

Very interesting observation that Jul 09 is 1.00 premium to Dec 09. Why not bullspread some 08 corn then?

So let's see. You sold October at a 730 pt premium to August Cattle right? Basically saying the back months are pricing in too much corn tightness and difficulty in brining supplies of fat cattle to the market by fall. Jul/Dec Corn settled at 33.25 cents. You're saying that if we saw...

I got long another Cocoa 2800/2900 Call spread at 60 pts today. I actually made em 60/65 and got hit. Seems the pit is a seller of this spread or at least my bids always get hit and offers are not lifted.. Coffee had range expansion and one trades it in the direction of the breakout. Nice...

Rtrader, everything is good. Yeah cocoa traded nicely and the COT today shows specs adding 4,000 odd of length and IMHO still have powder to run the market higher. OJ has seemed quiet. I'm more neutral here and if anything would own cheap calls for a lotto trade, not sure if I'm in love with...

Hey YT So with July expiring at 10.54 , looks like you're taking home 68 pts on your Sugar Straddle yes? Did you close before expiration to avoid getting "pinned" on expiration and having a short futures position assigned to you at 10.5???

Even better. sell the 3100/3200 Sep cocoa call spread at 30 pts, reduce net cost of strategy to 15.5 pts and have a profit range b/w 2900-3100 ?

One thought to hedge my 2800/2900 call spread in Sep Cocoa could be in fact to turn it into a Condor by selling the 3000/3100 Call spread. If I paid 45.5 pts for the 2800/2900 and can sell the 3000/3100 spread for 40pts (settled there) then my net cost is 5.5 pts. My profit zone is...

YT looked at your 10/11/12 October Sugar Butterfly. Looks like a debit of 18 pts. My question though is with the underlying at 11.54 this spread looks biased to want the market to trail off as you are already pretty close to your upper breakeven zone. Basically you are paying 18 pts to gain...

cocoa testing 3,000. I think we take it out and continue to charge higher.

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...

In August Coffee Options: with 30 days to expiration: A short 125/130/135 butterfly settled at 410pts A short 130/135/140 butterfly settled at 430pts I.e. Long the 130 calls & puts and short the 125 put and 135 call for the first example Long the 135 calls & puts and short...