Long in Sugar #11 (SB)

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tradimo
Jul 20, 2017 · 2 min read

Sugar is on the rise after a very long down trend. Yesterday, the closing price was above a resistance at around 14.40. At the moment, there is also an up trend with the breakthrough of the resistance. In addition, the COT data are in an extreme that has never been achieved in the last 20 years.

In our opinion, we have a good spot for a long trade. Stop can be placed at the last swing low or under the now existing support line. Take profit could be 16.40.

Our approach: We decide to implement this trade with options because the IVR is also very high. Of course there are plenty of right ways to take a long position. This is how we do it and which makes us feel comfortable.

Short Put with strike at 13.00 which has a risk of 960 Dollars and is a risk of 0,7%. Regarding the high IVR we are comfortable with a bigger position and are willing to manage it if necessary.

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