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.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTShere is a substantial risk of loss in trading futures and options.
PLACING CONTINGENT ORDERS SUCH AS STOP LOSS OR STOP LIMIT ORDERS WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS. SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.
The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities.. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.