Today, Sept. Coffee futures touched as low as 174.8 (at the time of this post), and they had reached as low as 173.25 last Wed. 5/28. We have been short Sept. Coffee futures from 180.0 with our Sept. Put option (1800 strike price) we bought for $4435 back on 5/9 (see previous post: Short Coffee Today After Drop Below Support). As shown in the Daily Coffee chart below, prices are very close to the 50% Retracement level of 170.4, now for the second time since last Wed. Yes, prices could continue to drop and even surpass the 50% Retracement level. However, today we sold our Put option for $6,341.
That gives us $1906 profit and 43% ROI in LESS THAN 1 MONTH!