Coffee Traders Forum
[ Post a Response | Coffee Traders Forum ]
Jul21 Options OI - Expiration 6/11
Posted by Tango
on June 6, 2021, 12:18 pm
On May 10th prices had a significant drop possibly due to the then upcoming Jun21 option expiration on May 14. It may have also been a coincidence that the market dropped and nothing to do with options. The OI sheet shows an accumulated net long position of 21,038 lots at this price level and as of this past Thursdayís close. Many of these contracts are already hedged, especially commercialsí. Specs have 65% of the total long delta position and we donít know how much of this percentage applies to N and how many of the 21k lots are already hedged. Itís a guessing game but if the market shows signs of fragility we may want to consider a correction some time this week.