Bean Option Recap From Jon Karmin

Beans drifted to contract lows as the frost “scare” is looking like it will cause very nominal damage or none at all.  Yields so far are off the chart.  I feel the break will continue to be very orderly because there does not seem there will be surprises.  The market has historically ratcheted to new price levels when actuality diverges from expectation.  It has become quite clear the kind of bean balance sheet we will be dealing with this year is negative to price so the option market is anticipating these breaks.  Furthermore, without a ratcheting move in price I don’t believe vol can get any legs. Vol should bounce around at levels not so impressive with occasional dips and pops but nothing which vol sellers or buyers will be so compelled to trade with conviction. SV vol 21.5 unch, SX vol 20.5 unch, SF vol 19.25 unch, SH vol 19.125 up .5.

 

Straddles

SV 1000 37-38.5

SX 1000 56.5-58

SF 1000 83-84

SH 1000 103-104

 

ABN Bot 1000 Nov 960 Puts 14.75-16

Tenco Bot 2500 Oct 1040 Calls 5.75-5.875/ Sold 500 Nov futures 998

ICAP Sold 200 Nov 1000 Straddles 60.75

ADM Bot 300 Nov 960 Puts / Sold 300 Nov 1040 Calls 1.75 db

Obrien (TJM/684) Sold 2000 Nov 1080 Calls 5.5-5.625

Rand Bot 1000 WK2 960 Puts 4

Rosenthal Bot 400 Nov 940/910 Put spds 5.25 db

ABN Sold 900 Nov 1010/980 Put spds 13.875 credit/ Sold 144 Nov futures 999

Macquarie Sold 200 Nov 1000 Straddles 60

Rand Bot 700 Dec 960 Puts 20-20.25

JP Morgan Sold 600 Nov 1000 Straddles 58.5-60

FI Sold 250 Nov 1040 Puts/ Bot 500 Nov 960 Puts 24.625 credit

DRAX Sold 1600 Jan 1000/980 Put spds 8.5 credit/ Sold 128 Jan futures 1003-1005

DRAX Sold 900 Jan 1000/980 Put spds 8.875/ Sold 72 Jan futures 999

Goldenberg Bot 200 Nov 940 Puts 10.875-11

ABN Sold 700 Mch 1100 Calls/ Bot 700 May 1160 Calls 5.25-5.5 credit

ABN Bot 1000 Nov 960 Puts/ Sold 750 Nov 920 Puts 43 db

JP Morgan Sold 500 Mch 1160 Calls 7.5-7.625

JP Morgan Sold 500 May 1160 Calls 11.5-11.75

ADM Sold 200 Oct 1000 Straddle s38.5-38.75

Obrien Bot 500 Mch 960/900 Put spds 15.75 db

JP Morgan Bot 800 Nov 950 Puts/ Sold 800 Oct 950 Puts 7.5-8 db

Obrien Sold 500 Nov 1000 Puts 31.5

ABN Sold 500 Nov 1000 Puts 31.5-31.625/ Sold 260 Nov futures 995

Rand Sold 2000 Nov 1040 Puts 58.5/ Sold 1440 Nov futures 992

Rosenthal Sold 500 Nov 1000 Puts 30.25/ Sold 250 Nov futures 997

Obrien Bot 500 Nov 1100 calls 3/ Sold 40 Nov futures 997

Rosenthal Sold 500 Nov 960 Puts 15

Rosenthal Sold 200 WK2 1010 Puts 21

ADM Bot 200 Jan 980 Puts/ Sold 200 Jan 1040 Calls 9 db

ADM Bot 800 Nov 940 Puts 10.625-10.75

 

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

 

Data source: Jon Karmin and Jeff Pogonitz bean option brokers