Bean Option Recap

Beans corrected the sharp rise on Friday following the report.  Either the new crop/old crop spreads are taking a breather before the next leg up or Friday’s rally was a capitulation and we will start our track down.  My feeling is these spreads are fully valued but we will not begin to see a significant break in them until we get the crop in the ground and we experience some less than threatening weather.  There seems to be a weather scare every year and maybe these early rains might have been it. In the end rain will only be beneficial to ending yields not detrimental so I feel the downside is a lot bigger than the upside.  Vol was relatively unchanged today.  SM vol 17.5 unch, SN vol 18.25 unch, SQ vol 20.25 down .25, SX vol 20.5 down .25.

 

 

Straddles

 

SM 1460 37-37.5

SN 1460 70-70.5

SQ 1400 101.5-103.5

SX1220 133-135

 

ADM Sold 300 June 1500 Calls 6-11.75

Fimat Sold 400 Jul 1420 Puts 11.5-11.75

Goldenberg Bot 200 Jan 1160 Puts/ Sold 200 Jan 1080 puts .875 db

Rosenthal Sold 500 June 1450 Puts 10-10.25

Marex Bot 200 SDFN 1200 Puts/ Sold 200 SDFN 1230 Calls even- 1 db

JP Morgan Bot 300 Jul 1500/1560 Call spds 13.75 db

Rosenthal Sold 450 June 1520 Calls 4.5

Fimat Bot 400 Mch 1180/1160 put spds 8.25 db

Tenco Bot 2000 Nov 1160/1040 Put spds 30.125 db/ Bot 420 Nov futures 1215.75

Fimat Bot 1000 SDFN 1200/1150 Put spds 13-14.5 db

GFI Bot 500 Aug 1500/1550 Call spds 8.375 db

 

Jon Karmin and Jeff Pogonitz Brokerage

 

Data source: Jon Karmin (JSK) and Jeff Pogonitz (POG) bean option brokers