This is the October 2020 Monthly Recap of the Trade Spotlight: Options advisory segment.
Open Positions
Coffee Bull Call Spread (9/2420)
Long the March 2021 Coffee 1.3000 / 1.4000 call from 150 points. Option spread settled at 70 points. Marked-to-market loss of $300. ADD.
Bought the 1.3000 call on 507 points / Sold the 1.4000 call at 357 points.
The Coffee futures market went into a free fall for eight straight sessions trading down to a potential strong support level near 1.1000. The Stochastic indicator showed momentum in the “oversold” territory and easing up. Entered into another bull call position, after previously liquidating a bull spread position for a profit. The contract recently broke the support level, but trading sideways. Risking the full premium. The option expiration date is not until February 10, 2021.
Copper Put (8/10/20)
Long the December 2020 Copper 2.500 put from 370 points. Option settled at 10 points. Marked-to-market loss of $900. HOLD.
The December 2020 Copper futures market was trading sideways in July and the beginning of August when a put option was purchased following the seasonal tendencies. More sideways trading occurred since the position was entered, albeit with a mid-October rally setting up a new twelve-month contract high. Risking the full premium at this point. The option expiration is November 24, 2020.
Working Orders
None.
Closed Positions
E-mini S&P Put Spread (10/16/20)
Liquidated the long December 2021 E-mini S&P 3280 / 3200 put spread from 15.0 points at 30.0 points (10/28/20) for a profit of $750.
Liquidated the 3280 put at 162.0 points / liquidated the 3200 put on 132 points.
Crude Oil Put Spread (9/04/20)
Liquidated the long January 2021 Crude Oil 38.00 / 35.00 put spread from 65 points at 136 points (10/29/20) for a profit of $710.
Sold the long 38.00 put (180 points) back at 425 points / Bought the short 35.00 put (115 points) back at 289 points.
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