Bean Option Recap From Jon Karmin 11/04/14

Follow through selling in beans.  We saw values 25 cents lower at one point but strength in meal kept beans from entirely falling out of bed.  The next few weeks should be very interesting with factors such as an easing in meal tightness, the November USDA report, Chinese bird flu, and a significant reduction in bean shorts, could lead to extreme volatility in the market.  Now that we have lost the lion’s share of shorts we had just a few weeks ago this market could be susceptible to a a significant flush south of we get any kind of bearish news without short covering to hold it up.  SZ vol 29.75 up .75 SF vol 26 up .75  SH vol 23.5 up .5  SX15 vol 19.5 unch

 

Straddles

 

SZ 1010 51.5-52.5

SF 1010 78.5-79.5

SH 1020 102.5-103.5

SX15 1000 150-152

 

 

DRAX Sold 200 Jan 960 Puts/ Sold 200 Jan 1040 Calls 47-47.5 credit

Rosenthal Sold 500 Nov15 900 Puts/ Bot 500 Jul 1000 Puts 23-23.5 credit

EDF Bot 800 Jan 920/870 Put spds 6.125-6.5 db

Jefferies Bot 400 Nov15 1000 Puts/ Sold 800 Nov15 900 Puts 8.75-9 db

ABN Bot 500 Dec 1000 Puts/ Sold 750 Dec 950 Puts 10.25 db

ICAP Bot 500 Jan 1010/960 Put spds 19 db

ABN Bot 250 Jan 1050 Puts 57.5

Macquarie Bot 200 Jan 960 Puts 21.25/ Bot 60 Jan futures 1009

Macquarie Sold 330 Jan 1140 Calls 4.875/ Bot 33 Jan futures 1009

Jefferies Sold 300 Mch 920 Puts/ Sold 300 Mch 1100 Calls 39.25 credit

EDF Bot 300 Jan 920/900 Put spds 3.25 db

ABN Bot 200 Jan 1000/950 Put spds / Sold 200 Jan 1020 Calls 14.5-15 credit

Obrien Bot 400 Jan 980 Calls 58.75-60.75

EDF Sold 400 Jan 900/950 Call spds 41-41.5 credit

ABN Sold 200 Jan 900/950 Call spds 41-41.5 credit

EDF Bot 500 Mch 940/900 Put spds 9 db

TJM Sold 200 Jul 1060 Puts/ Bot 400 Jul 960 Puts 7.25 credit

Jefferies Sold 500 Jan 1000/980 Put spds 7.75 credit

 

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

 

Data source: Jon Karmin and Jeff Pogonitz bean option brokers