Coffee - Trading Idea using Options

The main motivation for this trade is the very low Implied Volatility and the extreme net long position of the Commercials. Unfortunately, the position of the Commercials cannot be used to time a trade short term. Most of the time, the Commercials can be found on the right side of the market long term. How can you approach such a market and what strategy can be used? I am usually an option seller, but under these conditions, I would look into buying an options spread using May options. Look for a spread that gives you at least 2:1 profit/loss ratio and use strikes close to the market.

Coffee Continuos Contract

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