In our live webinar, we were discussing how global warming is leading to poor coffee production.  As a trade idea for our OOP:

• Buy 15 JO March $19 calls at $3.50 ($5,250) 
• Sell 15 JO March $22 calls at $1.90 ($2,850) 
• Sell 5 JO March $20 puts at $1.10 ($550)

That's net $1,850 on the $4,500 spread so $2,650 (143%) upside at $22.

For the STP:

• Buy 50 JO March $19 calls at $3.50 ($17,500) 
• Sell 50 JO March $22 calls at $1.90 ($9,500) 
• Sell 30 JO March $20 puts at $1.10 ($3,300)
• Sell 20 GOGO 2018 $10 puts at $2.40 ($4,800)

That's a net $100 credit on the $15,000 spread and either put can be transferred to the LTP if they look like trouble as they are both good for long-term holds.  

We also like the /KC July calls (/KCN7) long at 153.35 but be very careful with Futures contracts.  

Want to see more?

Reap the benefits of one of our paid membership plans and get access to articles like these PLUS:

• Insightful daily market reviews
• Educational guides and posts
• Access to our Virtual Trading portfolios
• Unique trading opportunities
• LIVE trading webinars
• Intraday market commentary from Phil
• Our community of traders