Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Gents, It's the gamma scalping from the put longs that keep price tethered to the 120. Same as last 2 Gamma weeks (option expiry week). As it stands now, figuring J+K near and at the money strikes the put longs need to sell over 1000 lots as price moves 100pts higher and buy the same amount 100 points lower- this is just to stay flat ( delta neutral). The resting paper is there. This is of course assuming it's the locals/spec/mkt maker long the puts and the roasters short the puts; a reasonable assumption given the method(s) in which the positions were initiated.