As Cocoa Prices Plummet, Our Put Option Briefly In The Money

Cocoa futures continue their slide (see the Intraday Cocoa chart below), which is getting steeper, going as low as 2849 before bouncing all the way back up to 2896. At the time of this post, July Cocoa futures sit around 2890.

The brief dip below our Put option’s strike price of 2850 was exciting, but even more exciting is the price collapse below the previous support level of 2880see the Daily Cocoa chart below.  We’re hopeful Cocoa continues this slide and we can reach our initial target at the 50% Retracement level of 2801.50 (see previous post: Shorting July Cocoa on 1-2-3 Top Formation).

 

Intraday Cocoa - July 2014Daily Cocoa - July 2014

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