Bean Option Recap

Another day of consolidation in beans.  Fairly decent volume with apparent new shorts via options and also some short covering of cheap out of the money call options. We are now focused on next week’s report and the number will be big but just how big.  We could see a minor short covering rally if the USDA does not own up fully to the size of the crop but I believe it won’t really be able to get any legs.  The downside does have some room but it is a very crowded trade now and we will need a compelling number to get some follow through.  So I am going to take a somewhat minority and unpopular opinion that it is quite possible we continue to trade in the $9 range plus or minus even after the report.  Flat price traders want markets to move.  Option traders not necessarily.  I’m am not pushing trading premium from the short side into this report because the risk could be great but I believe that is where the money will be made in bean options at the end of next week.  I’m sitting this one out.  SX vol 22.25 up .25, SZ vol 21.5 up .5, SF vol 20 up .5, SH vol 19.75 up .25.

 

Straddles

SX 920 40.75-41.5

SZ 920 60-61

SF 920 72.75-73.75

SH 940 91.5-93

 

JP Morgan Bot 1400 Jan 860 Puts / Sold 1400 Nov 900 Puts 1.5-1.875 db

DRAX Sold 200 Jan 900 Puts 23

DRAX Bot 2000 Nov 980 Calls 2.75-3/ Sold 240 Nov futures 921

TJM Bot 500 Nov 930/950 Call spds 4 db

ADM Bot 200 Nov 1000 Calls 1.625

ADM Bot 400 Nov 1010 Calls 1.25

ABN Bot 500 May 940 Puts/ Sold 500 Nov 920 Straddles 10 db

EDF Bot 1250 Jan 860 Puts/ Sold 1250 Nov 900 Puts 1.75 db/ Sold 138 Nov futures 923

Obrien Sold 250 Jan 900 Puts/ Sold 250 Jan 940 Calls 53 credit

Rosenthal Bot 2000 Jul 900 Puts 37-40.25

New Edge Bot 250 Jan 900 Puts 22.5/ Bot 85 Jan futures 933

Rosenthal Sold 600 Mch 980 Puts/ Bot 600 May 880 Puts 40 Credit

TJM Bot 300 Nov 930/980 Call spds 13.25 db

ABN Bot 250 SDFH 1080 Calls 5.5

Obrien Bot 500 Nov 920 Calls 19.125/ Sold 250 Nov 917

Macquarie Sold 250 Nov 930 Puts 27-27.125

Macquarie Sold 200 Nov 900 Calls 30

FI Sold 200 Nov 840 Puts/ Sold 200 Nov 980 Calls 5.25 credit

EDF Bot 750 Mch 920 Puts/ Sold 1500 May 840 Puts 1 db

Rosenthal Bot 250 Nov 930/980 Calls spds 12.875-13 db

ADM Sold 1000 Nov 890 Puts 8.75

Obrien Bot 1000 Nov 940 Calls 12.375/ Sold 360 Nov futures 922

 

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

 

Data source: Jon Karmin and Jeff Pogonitz bean option brokers