Coffee Traders' Forum

Twilight Strangler Considerations
By:Barefoot
Date: Tuesday, 2 February 2010, 3:21 am

From Monday Night Settlements with 7 days to go to OE, the calculations below fit and feel to me relevant. Basis the Seller side--

1. KCH 140 Calls. To get beat, KCH must rally in coming 7 days 106 pts. per day to the Strike and 113 pts. per day to the Strike + Premium.

2. KCH 145 Calls. To get beat, KCH must rally in coming 7 days 178 pts. per day to the Strike and 181 pts. per day to the Strike + Premium.

3. KCH 125 Puts. To get beat, KCH must decline in coming days 108 pts. per day to the Strike and 114 pts. per day to the Strike + Premium.

You can easily calculate your own choices of Strikes and Strikes + Premiums. I found it an enlightening process.

I have been sweating like Peeg in recent days with my earlier substantial Put sales. Finally yesterday I get to begin offsetting a bit with sales of 140/145 Calls. Hope to continue process today et. seq.

Positions: Short 140 thru 175 Calls, Short 125 thru 130 Puts.

The exciting part rates to lie directly ahead, with 7 days to go. Twilight Stangler aroused and now into action.

On We Go,
Barefoot

Responses To This Message

Re: Twilight Strangler Considerations/ Barefoot
Ludek -- Tuesday, 2 February 2010, 6:20 am