Bean Option Comment

Feels like holiday markets on the grain floor but we are only midway through November.  I don’t see much to move the underlying markets before the end of the year but hopefully I’m wrong. It appears that  the market is treating vol with that perspective as well because it keeps drifting lower.  I like being long SH vol versus short SF vol because SH will retain premium for the January report, keep some weather premium for the south American crop whereas SF options have neither.  SZ vol 17 down .375, SF vol 15.25 down .25, SH vol 17 down .25

 

Straddles

 

SZ 1270 15-16.5

SF 1270 49-50

SH 1260 85.5-87

 

ADM Sold 300 Jul 1240 Puts 56.5

Tenco bot 700 Jan 1320 Calls 10.25-10.625

ADM Bot 200 Nov 1240/1400 Call spds 28.75

ADM Bot 250 Jan 1320 Calls 8-8.375

ADM Sold 200 Jan 1270 Straddles 49.5-49.75

Macquarie Bot 250 Dec 1300 calls/ Sold 250 Dec 1250 Puts .5 db/ Sold 50 Jan futures 1282

 

Jon Karmin and Jeff Pogonitz Brokerage