Coffee futures and options question

Quote from nravo:

Well, like no change at 11:30 a.m. still only a handful of contracts bid and ask, like 1 and 35 and fluctuating between 1 and 1. Is this the way it is for coffee on IB and NYBOT? I mean this is a joke of a volume.
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Like I said, ask/bid size is always pretty small. But in terms of volume, my chart shows roughly 3000 contracts of the KCU9 trading so far this morning.

That's a lil light, but that's what you're going to get with coffee.
 
yea coffee has traded fairly normally today...I'm showing 4K on volume, and currently 6x4 on a 3 tick spread. If you want a lot of volume, the softs probably aren't for you...this is just how it is. Best soft volume is sugar, followed by cotton. Wait till a big order comes in one day...you'll be asleep and in about 30 seconds you'll see it spike $4. haha!
 
Quote from traderTX:

yea coffee has traded fairly normally today...I'm showing 4K on volume, and currently 6x4 on a 3 tick spread. If you want a lot of volume, the softs probably aren't for you...this is just how it is. Best soft volume is sugar, followed by cotton. Wait till a big order comes in one day...you'll be asleep and in about 30 seconds you'll see it spike $4. haha!
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Thanks, guys. Btw, when do the contracts for F and FO contracts December start? I have nothing on my screen for them right now.

Oh one other questions, let's say I buy the Sept futures and write a Sept ATM call. The call expires Aug. 14th. How can I hedge (with a call) by Sept futures for the last three weeks? Or is that when I should roll into December, if it is available. Seems odd to do that, though.
 
Another quick question: Margin on a covered call. Does the short call change the margin required, lessen it presumably?
 
Quote from nravo:

Thanks, guys. Btw, when do the contracts for F and FO contracts December start? I have nothing on my screen for them right now.

Oh one other questions, let's say I buy the Sept futures and write a Sept ATM call. The call expires Aug. 14th. How can I hedge (with a call) by Sept futures for the last three weeks? Or is that when I should roll into December, if it is available. Seems odd to do that, though.
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when the options expire, the volume will move (or have already moved) out to the next month, so don't be a hero...move with it out to Dec. As you get close to op-ex, monitor the volume and open interest, and as you see the shift happen, go with the flow...better opportunities will be in the high volume for directional trading...only stay in the Sep if you are spreading the roll.

And I'm not sure what you mean...I show quotes for Dec Coffee futs and opts. I only track the 2 nearby options, but I have quotes clear out to March 2011 on the futs.
 
Quote from traderTX:

when the options expire, the volume will move (or have already moved) out to the next month, so don't be a hero...move with it out to Dec. As you get close to op-ex, monitor the volume and open interest, and as you see the shift happen, go with the flow...better opportunities will be in the high volume for directional trading...only stay in the Sep if you are spreading the roll.

And I'm not sure what you mean...I show quotes for Dec Coffee futs and opts. I only track the 2 nearby options, but I have quotes clear out to March 2011 on the futs.
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Okay, so let me see if I understand; Let's say I have a 1.30 call on coffee, hypothetically and the underlying September bought at 1.25, and when the call expires on August 14 the next day I roll the underlying into December?

As for out months on futures and options for KC, I am trading electronically, NYBOT/ICE, so maybe that's the problem. Or the market just closed. I'll check back again tomorrow.
 
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