Wednesday, November 28, 2012

Mar Coffee

I gave my analysis on the continuation charts for Coffee, but here's the March futures contract.  Today we got a big bounce higher.  Could this be the start of the bottom? Remember, the commercials have a record long position, which is extremely bullish.  The question is not if, but when the market will have a big upward move.  I think it's sooner than later as I've put on two option trades:
11/14 bought 1 KC Mar 160 C @ 5.40
11/26 bought 2 KC Mar 150-162.50 C spread @ 3,112.50 debit
I'm a novice option trader to say the least so still experimenting, but too hard to buy futures on this trade setup.  I'm exploring options as a way to enter these specific trades as timing is difficult and can take a couple months to capture the big move.  These trades don't occur often, but when they do they can have explosive reversals.  Let's see what happens with this market the next couple months.

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