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Way to Trade Thru Options Plays


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Coffee (March 2018)

Buy 1 KC-MH8 $165.00 Call for 0.95 or better. The total risk is $356.25 plus commissions and fees.



Coffee has been drastically oversold and may be due for an upside breakout. The sentiment is that the dry weather in Brazil from earlier this year may have a negative effect on the crops this year. Vietnams October Coffee exports were about 1.32 million bags down 0.5 % from last month. The huge net short spec position may trigger short covering with the slightest bullish news. According to the International Coffee Organization, Coffee exports in September were around 8.34 million bags while one year ago, they 9.8 million bags. Total Coffee exports totaled about 122.45 million bags, up 4.8 % as of September (for one year) while the previous year had 116.89 million bags.

We monitor the options position and will attempt to double the premium on the trade.


The minimum tick is 0.01 equivalent to $3.75.


To close the position!
Sell 1 KC-MH8 $165.00 Call for 1.90 or better. The total dollar value would then be $712.50 less commissions and fees.


The Expiration of the option is February 9th, 2018


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This is a long shot as most options expire worthless. The odds favor the writer or granter of the option. The reason to buy options typically may be for the prescribed risk factor except in the case that an option goes into the money and is exercised. It would then become a futures position requiring margin.


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Daniels Trading
100 South Wacker Drive, Suite 1225
Chicago, IL 60606

www.danielstrading.com

THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.
THIS MATERIAL HAS BEEN PREPARED BY A DANIELS TRADING BROKER WHO PROVIDES RESEARCH MARKET COMMENTARY AND TRADE RECOMMENDATIONS AS PART OF HIS OR HER SOLICITATION FOR ACCOUNTS AND SOLICITATION FOR TRADES; HOWEVER, DANIELS TRADING DOES NOT MAINTAIN A RESEARCH DEPARTMENT AS DEFINED IN CFTC RULE 1.71. DANIELS TRADING, ITS PRINCIPALS, BROKERS AND EMPLOYEES MAY TRADE IN DERIVATIVES FOR THEIR OWN ACCOUNTS OR FOR THE ACCOUNTS OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS RISK TOLERANCE, MARGIN REQUIREMENTS, TRADING OBJECTIVES, SHORT TERM VS. LONG TERM STRATEGIES, TECHNICAL VS. FUNDAMENTAL MARKET ANALYSIS, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE INITIATION OR LIQUIDATION OF POSITIONS THAT ARE DIFFERENT FROM OR CONTRARY TO THE OPINIONS AND RECOMMENDATIONS CONTAINED THEREIN.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.
YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD READ THE "RISK DISCLOSURE" ACCESSED BY THE LINK BELOW. DANIELS TRADING IS NOT AFFILIATED WITH NOR DOES IT ENDORSE ANY TRADING SYSTEM, NEWSLETTER OR OTHER SIMILAR SERVICE. DANIELS TRADING DOES NOT GUARANTEE OR VERIFY ANY PERFORMANCE CLAIMS MADE BY SUCH SYSTEMS OR SERVICES.
WHEN INVESTING IN THE PURCHASING OF OPTIONS, YOU MAY LOSE ALL OF THE MONEY YOU INVESTED. WHEN SELLING OPTIONS, YOU MAY LOSE MORE THAN THE FUNDS YOU INVESTED.
Daniels Trading is a registered trademark. Copyright 2017 Daniels Trading. All rights reserved.
RISK DISCLOSURE | PRIVACY POLICY | UNSUBSCRIBE



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About the author


In systems trading, Leslie runs a spread sheet of a number of systems to monitor the trends of the systems themselves. She believes in filters to increase probabilities. Perhaps this part of her was found back in college when she proficiencied out of statistics.

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