Beans Option Comment

Beans took it on the chin today as longs exited the market in a big way.  The realization is settling in that without continued fund buying the bearish fundamentals on the grain floor will prevail.  SN settled just above very significant technical support at 1460 and if penetrated and closed beneath will create further liquidation.  Vol was off early but exploded as beans broke to lows.  Most importantly, it signifies that a break to levels we have not seen in many months is feared.  Buying breaks in this market will be like catching a falling knife…it will be very hazardous.  SM vol 21 up 1, SN vol 21.75 up .765, SQ vol 22 up .5, SX vol 20.75 unch.

 

Straddles

 

SM 1460 62-65

SN 1460 94-96

SQ 1400 120-122

SX 1220 138.5-140

 

ADM Bot 350 Jul 1500/1460 put spds 17.75-19.5 db

ADM Bot 200 SDFN 1200 Puts/ Sold 200 SDFN 1270 Calls even-.5 db

ADM Bot 250 Jul 1500/1400 Put spds 35-36 db

Marex Sold 500 Jul 1500 Puts 50.5

ADM Sold 200 Nov 1180 Puts/ Sold 200 Nov 1280 Calls 95.5

ADM Bot 200 Jul 1490 Puts 46-46.25

Bache Sold 200 Jul 1490 Calls 47

Obrien Bot 500 June 1490 Calls/ Sold 500 Jul 1460 puts 1-3 credit

FI Bot 200 Jul 1530 Calls/ Sold 200 Jul 1440 puts 5 db

Rand Bot 200 June 1510 Calls/ sold 200 June 1470 Puts even

Obrien Bot 200 Jul 1490 calls 46

Obrien Bot 600 June 1480 calls/ Sold 500 Jul 1460 Puts .5 db-2 credit

Bunge Bot 500 WK@ 1440 Puts 6.5

Fimat Sold 250 Sep 1060/1040 Puts spds 1.125 credit

FI Bot 1400 Nov 1100/1060 Put spds 7.875 db

Rosenthal Sold 500 June 1420 Puts/ Bot 500 Jul 1350 Puts 1 credit

Rosenthal Sold 800 Jul 1200 Puts .875

Marex Sold 1000 Jul 1540 calls 25/ Bot 350 July futures 1483

Marex Sold 320 Jul 1540 Calls 20/ Bot 96 Jul futures 1465

ADM Bot 400 June 1360 Puts 2.125

ADM Bot 250 Jul 1450 Puts 33.75

Fimat Sold 400 Sep 1200/1100 Put spds 18.5 credit

JP Morgan Bot 300 Jul 1460 Puts 37.25-37.375/ Bot 126 Jul futures 1479

Rosenthal Sold 350 N/X CSO 200 Puts 17-20

ICAP Bot 200 Jul1 480 Calls 45/ Sold 100 Jul futures 1476

ADM Bot 250 June 1440 Puts 16

GFI Sold 1500 Jul 1500 Calls/ Sold 1500 Nov 1200 Puts 88.25-90.625 credit

ADM Bot 350 June 1440 Puts 18.75-21.5

Rosenthal Sold 800 Jul 1140 Puts .5

ADM Sold 300 June 1490 Calls 20-21.75

ICAP Bot 1000 Jul 1440 Puts /Sold 2000 Jul 1380 Puts/ Bot 1000 Jul 1320 Puts 10 db/ Bot 140 Jul futures 1469

ADM Bot 200 Jul 1400/1360 Put spds 9.5 db

 

Jon Karmin and Jeff Pogonitz Brokerage