06/18/2025
Strategy Idea...Let's add to October sugar (or enter if you aren't already in).
We suggested buying October sugar calls a few weeks ago using the 18.25 strike. Those are obviously underwater, but we haven't given up on the idea. Despite recent weakness, we believe the probabilities are in favor of a reversal. The idea would be to add onto the trade with a lower strike; if prices rally, we can take profits on the added contract and hold the original. If not, our risk on both is limited to the cost of entry. If you didn't participate in the previous recommendation, even better. This option has 90 days to expiration and is only a few ticks out of the money for less than $800! Sugar futures have collapsed in recent weeks, but seasonality is bullish, and the final trendline is supportive.
