There are still opportunities to sell calls in the October contract on rally days. These options should benefit from relatively quick time decay. However, the pure fundamental play is in the March contract as new record supplies will be fully reflected in this contract. The later we get in the year, the more impact these new supplies will have on price.
Sellers of the March calls will also benefit from deeper out of the money strikes. Profits could potentially be taken as early as October or November.
We will be workly closely with our managed accounts this month in selecting the optimum strikes in the Sugar market.
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