Bean Option Recap From Jon Karmin

Beans traded lower after crop ratings were better than expected after the close Monday.  I am starting to see some shorts adding to their position as we toy again with contract lows.  However, other shorts are looking at these lows as a way to take a little off the table.  I believe this is the reason beans are having difficulty flushing south.  A move lower may come in the way of a grind rather than flush because large put orders are selling into the bean break adding some support to flat price but weighing on vol.  SX vol is consolidating in the mid 18% range and I believe you can start to look to buy it just a little lower for the September report. We may well go below 18% but I’ve found that those who look to buy the dead low in vol often miss the next move altogether.  SU vol 23 down 1.75, SV  vol19 down .25, SX vol 18.5 unch, SF vol 17.375 down .25,  SH vol  17.25 down .125.

 

Straddles

SU 1120 20-22

SV 1050 31-32.5

SX 1050 65.5-67

SF 1060 87-89

SH 1060 104-107

 

Macquarie Bot 100 Nov 1200 calls 2/ Sold 50 Nov futures 1049

Rand Sold 600 Nov 1160 Puts 116/ Sold 540 nov futures 1048

FI Sold 1500 SDFU 1060/1000 Puts spds 17-19 credit

Macquarie Bot 500 U/X CSO 45 Puts 3.5

DRAX Bot 500 Nov 1040/1000 Put spds 15/ Bot 80 Nov futures 1047

Macquarie Bot 1000 Nov 1160 Puts 115.875-116/ Bot 900 Nov futures 1048

Marex Sold 1000 Nov 1120 Puts 79.5/ Sold 800 Nov futures 1050

Marex Sold 500 Nov 1000 Puts 14.5/ Sold 134 Nov futures 1050

ABN Sold 500 Nov 1000 Puts 15.625-15.75

Obrien Bot 1200 Jan 980 Puts/ Sold 600 Nov 1040 Puts/ Sold 600 Jan 1140 Calls 9-11 credit

JP Morgan Sold 500 Nov 1060/1040 Put spds 10.125 credit

EDF Bot 200 Nov 1040 Puts/ Sold 400 May 1160 Calls 20 credit

ADM Bot 500 Oct 1050 Puts 28.75-29.125

GFI Sold 300 Nov 950 Puts/ Sold 300 Nov 1150 Calls 10 credit

ADM Sold 200 Oct 1050 Calls 23.5-23.75

Cunningham Bot 500 Jul15 1200 calls / Sold 500 Nov15  1200 Calls even

 

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

 

Data source: Jon Karmin and Jeff Pogonitz bean option brokers