Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
You are 100% correct. But remember, as it relates to MM's, puts and calls, once hedged and neutralized, carry the same weight regarding gamma so we need to look at the TOTAL OI of the 120.00 strike (which I don't have at this time). The April contract is much more relevant than the May here as theta is accelerated by the minute going into expiration. Moreover, if we remain quiet like this MM's will move their sheets forward, whether it's a half a day or a full, to trade off of forward sheets, in essence shortening the gamma tether. We may see this action change heading into Friday as the gamma/theta ratios become too juicy to resist. That gamma reversal from positive to negative, should it occur, coupled with some stop-loss action, could be the punch in the arm we need here. Just my thoughts.
On we go...