Bean Option Recap From Jon Karmin

SX rallied early on sympathy with a short squeeze in SU.  As SU retraced some of its early gains and traders acknowledged that there really should be very little correlation between a squeeze in SU and the new crop we began to see SX detach itself from SU.  There has been a fair amount of attention given to SU and it has helped keep SX from falling out of bed but as SU options expired today and we approach first notice day next Friday I feel that the market will turn its attention to the wave of beans which will be available for November delivery.  Today we had decent two way option trade but for the most part we saw short SV buying back some premium which helped push up SX vol before the weekend.  ProFarmer projected national yields come out after the close and there does not seem to be much interest in selling vol too cheap beforehand.  We may have seen the low in vol earlier this week until after the September report.  SV vol  19.75 up .375, SX vol 19.625 up .325, SF vol  18.25 up .625, SH vol  18 up .625.

 

Straddles

SV 1040 51-52

SX 1040 67.25-68.25

SF 1040 88-90

SH 1060 104-106

 

Rosenthal Bot 300 May 1140 Calls 29/ Sold 96 May futures 1062.5

EDF Bot 200 Nov 1030 Puts/ Sold 200 May 1160 Calls 4.5-5 db

ADM Bot 200 may 1080 puts/ Sold 200 May 1080 Calls 21-23.5 db

Obrien Sold 250 Nov 1040 Straddles / Bot 500 Jan 960 Puts 29.25-31 credit

Obrien Bot 250 Jan 980 Puts/ Sold 125 Nov 1040 Puts 5.25 db

Obrien Bot 250 Nov 1080 calls 18.25-19

Jefferies Sold 500 Nov 1000 Put s16.875/ Sold 150 Nov futures 1044

Jefferies Sold 500 Nov 1020 Puts 24.5

ADM Bot 400 Oct 1120 calls 4.125

ADM Bot 1000 Oct 1080 Calls 12-12.25

Rosenthal Sold 200 may 1140 Calls 28.5

ICAP Bot 1000 Nov 1040 Puts/ Sold 2000 Nov 980 Puts 9-9.5 db

FI Bot 250 Oct 1020 Puts 17

Rand Sold 250 Nov 1000 Puts 17

ADM Bot 500 Oct 1030 Puts 21.25-22

ADM Sold 200 Mch 1080 Calls 42

ABN Sold 500 Mch 1080 Calls/ Bot 1000 Mch 1180 Calls 15.25-15.5 credit

Cunningham Bot 500 Nov 920 Puts/ Sold 500 Oct 920 Puts 2.25 db

EDF Sold 200 Nov 1100 Calls 13

 

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

 

Data source: Jon Karmin and Jeff Pogonitz bean option brokers