Cocoa is trading at levels not seen since 1980, however the day to day trading action has been extremely choppy leading us to believe that the trading is being done by Bulls with  weak hands, in other words they are starting to sweat the fact that the market is overpriced as well as over bought.  We are looking at a multi leg trade which could not only give us an at the money bear put spread but also utilizing an out of the money option as a kicker so we could be there in case we really see this market break down.  Buy the May 3300/3000 bear put spread with a 4000 call as a naked leg.  This trade is being filled at a credit of over $200 which means the trade could be profitable intrinsically with the market expiring below 4000.  As an out of the money put we are using the $200 to buy the May 2400 put for the kicker.  The risk depends on how we get filled and with the market under 4000 would be limited to the premium and transaction costs paid, over 4000 the risk would be unlimited.  The profit potential would vary depending on how far down the market goes, the bear put spread has a profit potential limited to $3,000 while the out of the money put has unlimited profit potential, although being so far out of the money the odds of it expiring in the money aren't high.

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