Facebook integration

Market: Coffee

Futures Opportunity: Sell Jul’20 Coffee (KC) futures @ Market on or before March 12, 2020.

Specifics…

Gross profit target is 400 points per contract.

Risk 100 points per contract.

Max hold time is until Apr. 13, 2020.  

Current margin requirement for this trade is $4,455 per contract.

[P/L example, assuming total commission & trade fees of $20 / round turn, this trade would yield a net profit of $1,480 per contract if the trade is liquidated at the profit target. If the trade is liquidated at the risk target, the total loss would be $395 per contract*] 

 — and/or —

Options Opportunity: Sell two (2) Jul’20 Coffee (KC) 17500 Calls @ .74 or better on or before March 12, 2020.

Specifics…

Gross profit target is 74 points per option pair.

Risk 25 points per option pair.

Max hold time is until Jun 12, 2020.  

Current margin requirement for this trade is $2,610 per option pair.

[P/L example, assuming total commission & trade fees of $20 / round turn, this trade would yield a net profit of $515 per option pair if the trade is liquidated at the profit target. If the trade is liquidated at the risk target, the total loss would be $227.50 per option pair*]

Analysis…

Fundamentally, this is a seasonal / cyclical trade that has been profitable 14 of the last 15 years – Coffee harvest in Brazil, the world’s largest producer, begins in June; into which the market typically declines. Technically, Coffee prices have been flat to downwards for the last several months. This trade looks to take advantage of the current trend.

If have any questions or need assistance with this trade recommendation, please feel free to contact me directly.

If you don’t already have a futures trading account with Insignia Futures & Options, I invite you to open one today…

Best Wishes,

Joe Fallico

Principal Futures Broker
Series 3 & Series 30 Registered

Phone: 1-847-379-5000 ext. 101
Toll Free: 1-866-892-2030ext. 101

Insignia Futures & Options, Inc.

* Required disclaimer:
There is a risk of loss in futures trading.  Past performance is not necessarily indicative of future results.  Seasonal trades track historical price cycles and have the benefit of hindsight.  There is no guarantee that any seasonal trade will follow the same cycle as in previous years and as such, there is no guarantee of profit. The use of a stop loss order may not necessarily limit your loss to the intended amount.

 

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

Share This