The Soft markets have been moving around. Coffee really has been. In my thirty years I’ve never seen it like this. Its so choppy. If you don’t see a price you like, just wait a few minutes and you will….

But seriously, options are too quiet. Here we have a market that is moving around a lot and options are eerily quiet. Now, of course a lot of traders are on vacation this week, and likely next, but with moves like we have been experiencing you’d think option volume would be certainly more than what we have. Why?

Perhaps the wide zone of noise is an answer. You see between 160, (maybe 15850) and the recent highs say 172.50, (176.50) movement is unable to stimulate business. I know several of my regular players are standing aside. They seem to feel that even with premiums at high levels the comfort level of holding positions isn’t there. I cannot blame them. High margins may be another reason.

Bottom line in my eye, electronic trading is also to blame. The majority of option business still gets executed on the floor, but much of the extreme moves occur when the option pit is closed.

Anyway, needed to offer some thoughts. Enjoy the long weekend….