December Coffee should be reaching its exhaustion point as well as the down trend line, we recently pulled out of our call spread and feel that we should reverse at this level. We like buying the 135/125 bear put spread and selling the naked 145 call as a premium collector. The trade is currently being bid at a debit of $187.50 before commissions, this would be your risk with the market above 135 and below 145, above 145 there is unlimited risk. On the down side you have additional profit potential of 10 cents or $3,750 maximum, before deducting commissions and premium paid.

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