The combination of a strong seasonal tendency and historically tight supplies makes steady to higher sugar prices a likely scenario over the next 90 days. When or how much higher is anyone's guess. Fortunately, as option sellers, we don't care about such trivialities. The deck is now stacked against a substantial move lower in sugar prices. This makes selling Sugar puts look like a high probability play for income and return seekers in late December/early January.
Note: The opinions presented here are that of Liberty Trading and not necessarily shared by Optionetics and/or its instructors.
James Cordier & Michael Gross
Contributing Writers, Liberty Trading Group/Optionsellers.com
Optionetics.com ~ Your Options Education Site
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