Taking Profits in High Grade Copper

We sold our July High Grade Copper futures contract yesterday at 3.21.  We were long from our 310 strike price option we exercised (see previous posts: Copper) , yielding us $2750 (we were long from 310, sold at 321, so we made 11 points x $250/point).  Since we paid $2038 premium for our 310 July call option, so we made a net profit of  $712.00 or made 35% ROI on this trade.


Copper Takes Off – Moving Our Stop-Loss to Lock in Profits

Boy, are we glad we exercised our High Grade Copper July Call Option and are long Copper futures from 3.10 because over the last few days, Copper prices have shot up to ~3.27 (at the time of this post).   See Daily High Grade Copper chart below.

Previously, we put our Stop Loss at 309  (just below the support level of 3.0985 – see previous post:  Exercising Our Copper Option And Going Long).   Now that prices have shot up, we want to lock in those profits so we called our broker and had him move our stop-loss to just below the support level of 3.147 at 3.14.   If prices continue to rise, we will gradually move our Stop Loss up to lock in more profits.

Daily High Grade Copper futures - July2014

Exercising Our Copper Option And Going Long

We have been long High Grade Copper futures since April 24 (see our Copper posts here: InstantCommodityTrader.com/blog/category/copper) and our 310 strike price Call option for the July 2014 contract month expired on 6/25 (yesterday) at which time we exercised our option and are now long High Grade Copper futures from 310.

We  put in a stop-loss order to our broker to sell our contact at 309 if prices fall below the support level of 3.0985 (see Daily chart below).  Since we are long from 310, we would only lose $250 if prices go that low (in addition to the premium we paid for the 310 Call option back in April).  If prices continue rising, we will gradually move our stop-loss up to lock in profits.

Daily High Grade Copper Chart - July 2014