Afternoon Bean Recap

Fireworks in beans today…The report was slightly bullish to expectations but as the still massive supplies of corn and beans hung over the market traders were quick to sell them both to daily lows on the close.  Most significantly was the absolute bloodbath in vol. I mentioned yesterday the capitulation of buying SX premium at 31% and how it would be quite unlikely to hold those levels in most any scenario.  SX vol closed close to 10% lower today than it traded late yesterday.  I believe we will settle in at this level to lower now that we got the report out of the way.  The opportunity to initiate put ratios has come and gone and those who put them on will be rewarded.  SX vol 21.5 down 6, SZ vol 20.75 down 3, SF vol 20 down 1.75, SH 940 vol 20 down 1.25

 

Straddles

 

SX 920 30.5-31.5

SZ 920 52-54

SF 920 66.5-68

SH 940 90-92

 

Jon Karmin (JSK)/Jeff Pogonitz (POG) Brokerage

 

Data source: Jon Karmin and Jeff Pogonitz bean option brokers