OJ/ Coffee Random Musings

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?
 
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
 
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
 
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.
 
You must log in or register to reply here.
Back
Top