Best way to short Orange Juice

[maxinger]

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.

well.
My estimate is that more than 90% of all the exchanges financial instruments
have very low or even zero volume.

I guess exchanges like to keep a very long list of financial instruments.

 

[mushinseeker]

always fascinated me the rhyme or reason behind launching futures products. Walked in the floor 1 day and there was a man (or woman) in cow costume and I think that was the launch at the NYBOT of cheese or milk futures. You would think milk futures would take off right? everyone uses it.. probably traded like 50 lots 1st day , 20 the 2nd..... cannabis futures would prob have a better following with a correlated instrument like White Castle futures.

 

[treeman]

Honestly, I’d love to be short coffee.. but these thinly trades instruments are the pits. And once they hit the daily limit, you’re handcuffed. Most times for days. The worst part was at one point, in order to get out, I asked my broker if I could just buy some way in the money calls, and force execution (I was and still am short, but it was after 3 limit up days in a row). Their answer- they don’t deal in lumber options. Fml. Then why quote the options?? Anyhow, lesson learned for me. At least I ended up making money on the lesson, and that’s a first.

 

[mushinseeker]

options might be useless on lock limits bec the ones selling it to you won't be able to lay off the risk. Now if u rtalking 1-3 lots, maybe someone the considers 1-3 chump change might get you out.. prob at a premium over fair value. or... you could go to home depot and but a truck of lumber as a hedge...now you are long spot short the future. Your neighbors gonna love you though.. where u gonna put all that lumber.

 

[treeman]

haha. Nice. Home Depot run, including renting a big rig for delivery... all as a hedge. A Target and Walmart run for the OJ equivalent? I'd need to buy a bunch of freezers to go along with it.

 

[JSOP]

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)

Sounds like the perfect underlying for iron condor or short strangle if it doesn't move much.

 

[treeman]

Where do you see it doesn’t move much?

 

[srinir]

Sounds like the perfect underlying for iron condor or short strangle if it doesn't move much.

In what world, limit up and limit down means not moving much?

 

[treeman]

I also didn’t say it was one right after the other. But we have charts so that you can see. Lumber has moved.

 

[JSOP]

Where do you see it doesn’t move much?

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)

Didn't you say "you can't move"? I misunderstood?