ACE Coffee - Aug 10, 2020

Below is an illustration trading futures options on Coffee (KC) traded on ICE.  Our post shows bullish and bearish positions using a combination of call and put options.

Trade Options on Futures

Coffee KC * Directional & Neutral Positions

Get your copy of Paul Forchione's book, "Trading Iron Condors".  Learn techniques from a professional options trader to manage risk while speculating on futures markets.

Calendar Spreads.small


Click here to view Paul's eBook

By using our website, you agree to accept our terms of use (click to read)

Term Structure

KC term


Options fall into the category of being slightly overvalued in non-volatile markets in the weekly options report. 

KC optV


Contract Size - 37,500 pounds.

Tick Size:  5/100 cent/lb., equivalent to $18.75 per contract.

Trading Hours: NEW YORK 4:15 AM - 1:30 PM ; 04:15 - 13:30

* Tip: Understanding what the numbers mean when looking at Coffee prices traded on ICE Exchange. The quotation you see is U.S. dollars and cents. Each contract you are buying or selling is 37,500 pounds.  A 1 tick move is 5/100 cent/lb., equivalent to $18.75 per contract. March, May, July, September, December.

?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here to read a helpful tip about Natural Gas futures and options

Coffee Charts

KC weekly

KC daily

* Tip: To view a larger chart image, simply right click on the image with your mouse. Next, select view image (or open image in new tab).

?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here on enlarging images


The % yield shown in the diagrams below represent an estimated return on margin from projected dates shown below. The structure has positive time decay which is an advantage over holding outright options.

Bull Put 

 kc bull put

Bearish Butterfly

kc bearish directional

Join our Free Webcast each month and learn how these strategies can benefit your trading.

Sign Up Now