Bean Option Recap From Jon Karmin

Classic short squeeze overnight as SX traded within .25 cents of $10 only to fail miserably early in the day session.  A close under $9.74 today would have decimated the charts and not been a good sign going forward for any bulls left.  We washed out the rest of the weak shorts overnight.  The bears played it perfectly and were able to establish more shorts up to 30 cents higher than we traded only last Thursday after the “bearish” USDA report.  Seems like a gift to me.  I don’t think this market breaks drastically from here for now. I think it will be a grind lower into the October expiration at the end of next week.  The at-the-money straddle in October is trading around 24 cents which tells me the market doesn’t expect us to break much below $9.60 before next Friday.  After that who knows.  Vol was weak.  SV vol 17.5 down 1.25, SX vol 18 down 1, SF vol 17.75 down .5, SH vol 17.75 down .75.

 

Straddles

SV 980 23-24.5

SX 980 45.5-46.5

SF 1000 73-74

SH 1000 92-94

 

FI Bot 500 Nov 980/940 Put spds/ Sold 500 Nov 1040 Calls 7.25 db

Rand Bot 1000 Nov 940 Puts/ Sold 1000 Nov 1020 Calls 2.125 credit/ Bot 520 Nov futures 985

Obrien Sold 400 Oct 1000 Straddles 29.25-29.5

Rosenthl Bot 250 Nov 920 Puts/ Sold 250 Nov 1040 Calls .875-1 credit

ADM Sold 400 Nov 1010 Calls 12-12.5

FI Bot 500 Nov 980/950 Put spds 11.25-11.625 db

Jefferies Sold 450 NOV15 980/1020 call spds 18.5 credit

EDF Sold 500 Nov 1040 Calls 5.375/ Bot 85 Nov futures 982

ADM Sold 500 Nov 1000 Puts 31.25-35.5

ADM Sold 300 SDFH 1000 Calls 37-37.5

DRAX Bot 1000 Nov 1100 Calls 1.25

Obrien Sold 500 Jan 980 Puts/ Bot 1000 Jan 920 Puts 6 credit

ADM Sold 200 Mch 1020 Calls 36.25

ICAP Sold 500 Oct 1020 Calls 1.75

JP Morgan Sold 500 Mch 1100 calls 12.25

DRAX Bot 250 Jul 1100 Calls 25/ Sold 75 Jul futures 1011

JP Morgan Sold 500 May 1100 Calls 18-18.25

JP Morgan Bot 200 Mch 1280 calls 1.25

JP Morgan Bot 250 Mch 1300 calls 1.125

EDF Bot 500 Nov 960 Puts 13.875/ Bot 155 Nov futures 982

Rosenthal Bot 500 Oct 1000 Calls 5

 

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

 

Data source: Jon Karmin and Jeff Pogonitz bean option brokers