Bean Option Recap From Jon Karmin 2/18/15

Beans rallied briefly overnight to touch the 50 moving average in SH and then were beaten down the rest of the day until a minor short covering rally on the close.  If beans don’t break over the next month we will only be encouraging more acres to beans for planting intentions and that will reduce the floor which could ultimately be reached later this year.  The SN/SX did not fare so well today which I believe is significantly overpriced and will eventually be the indicator should this market want to break.  I don’t currently see an option play to exploit our relatively high prices that fits my risk/reward parameters but fully anticipate something before planting intentions is released.  Some of the best bean option opportunities present themselves in the weeks leading up to the report.

 

Bean vols:

March vol 21 ½ unchanged

April vol 17 up an 1/8

May vol 19 firm

July vol 19 ¾ unchanged

Nov vol 19 ¼ up a ¼

 

Bean Straddles:

March 990 str 15-16

April 1000 str 43-44 ½

May 1000 str 63 ½ -64 ½

July 1000 str 93-94 ½

Nov 980 str 122-123 ½

 

Bean Players:

FI Sold 450 July 1080 Calls 20.75-22.5

JP Morgan Bot 1500 May 900 Puts/ Bot 1500 May 1020 Calls 29.25-32 db/ Sold 525 May futures 1002-1010

FI Sold 400 April 940/950 Call spds 8.625 credit

Rosenthal Sold 300 March 980/1010 Call spds 20 credit

Drax Bot 500 April 960 Puts/Sold 500 April 1050 Calls 1.625 Credit/ Bot 210 May futures 1010

ADM Sold 300 July 1020 Calls 42.75/ Bot 150 July futures 1010

EDF Sold 300 July 1020 Calls 41.75/ Bot 150 July futures 1008

Rosenthal Bot 500 May 980 Puts/ Sold 1000 May 930 puts 5 db

EDF Sold 200 March 980 Puts 1.5-1.625

Jefferies Bot 200 May 980 Puts/ Sold 400 May 930 Puts 5.125 db

JP Morgan Bot 1000 April 1040 Calls/ Sold 2000 Jul 840 Puts .25-1.5 credit

Obrien Bot 500 May 1100 Calls 5.25

EDF Bot 500 May 1100 Calls 5.25-5.375

ABN Bot 500 May 1100 Calls 5.375

JP Morgan Bot 500 April 1030 Calls/ Sold 1000 Jul 840 Puts even-.5 credit

Jefferies Sold 200 May 1130 calls 3

Obrien Bot 500 April 1010/1050 Calls spds 10.375-10.5 db

Rand Bot 500  May 1040/1000 Put spds 25.25 db

Rand Bot 500 May 980 Puts 24.75

 

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

 

Data source: Jon Karmin and Jeff Pogonitz bean option brokers