Bean Option Recap From Jon Karmin

Very volatile day in beans and meal but after we scared shorts out who thought yesterday was a capitulation only to be proved wrong once again we consolidated lower. This is not a market for one with a weak stomach.  I fully anticipate we will see multiple 40-50 cent ranges through the end of the year.  A simple hiccup can send this market rocketing in either direction.  I understand how beans have followed meal higher but it baffles me to watch some of these futures spreads with the current carryout of 450M such as SN/SX trading out to as much as 50 over.  I believe there is option opportunity doing some put calendars exploiting these extremes.  SZ vol 28.5 down 1.5, SF 24.75 down 1.75, vol  SH vol 23 down 1, SX15 vol  19.625 down .375

 

Straddles:

SZ 1050 36.5-38

SF 1050 71-72.5

SH 1060 101-102

SX15 1040 156-158

 

Players:

ABN Bot 1000 Dec 1100 Calls 6.25-7

DRAX Sold 1000 Dec 1090 Calls 7/ Bot 270 Jan futures 1056

DRAX Bot 400 March 1140 Calls/ Sold 400 Jan 100 Calls 4 db

Rosenthal Bot 500 Jul 1000/900 put spds 14.25-14.5 db

MAREX Sold 1500 March 1060 Puts 51.75-52.25/ Sold 660 March Futures 1060

Marex Sold 2000 March 1060 puts 46.25-47/ Sold 880 March futures 1070

FI Bot 400 Jan 1020 Puts 22.125/ Bot 136 Jan futures 1054

Obrien Bot 800 Jan 920 Puts 3.75-4

 

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

 

Data source: Jon Karmin and Jeff Pogonitz bean option brokers