Coffee Traders' Forum - A Discussion about Coffee Futures Trading

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Re: Market
In Response To: Market *PIC* ()

Hello Tango,

it has been a while since I post here, but I read often.
Thank you and others for great flow of information.

I would like to ask you about your post, to make sure I understand all consequences..
"I for one am long Apr puts and am looking to buy below 120.00."
Long Put means short position - you bought a right to sell futures for xxx USD, and you hope to buy futures back for price below your xxx strike (E.g. below 120). Right?
Are April options still on the market? Their time value must be almost zero.

"The trader who is short puts has the burden of deciding when and if to sell but likely the put shorts will dump futures well below 120.00 and at a time near the close."
Such a trader is long, so he hopes that buyer will not execute. If he has to buy his options for 120. For such trader price above 120 is welcome.
Price below 120 means open short position on futures contract that has to be ?delivered? or why he needs to dump futures near the close?
Price above 120 is no problem, right?

"Possibly also they will remain long the futures should the market settles below 120.00."
I would expect them remain long futures if margin and cash situation allows it, because dumping at one hurts their position.

And is there any implication for next week's development on the market?
Is there any reasonable expectation for a price movement on Monday with regard to E.g. May Calls?

Thank you very much.


Messages In This Thread

Market *PIC*
Re: Market
Re: Market
Re: Market (Thank you Tango) *NM*
Re: Market (Thank you Tango)
Re: Market (Thank you Tango)/ Jack