Bean Option Recap From Jon Karmin 2/24/15

Beans shot higher on shorts caught from selling in the hole the past few days and got a little fuel from the truck strike in South America.  I don’t believe the strike will have any lasting effect on bean prices.  We seem to run into this every year and the market gets a scare but the beans are still there and will eventually move.  We made new highs by one penny since the January crop report but those looking for stops did not find them and the market crashed as the buying dried up.  I like being short at that SK 1031 level from where we failed.  you had to move fast but there were some cheap SK put 1 by 2’s at that moment as vol traded at recent highs.  If you couldn’t get those off the easier trade was shorting SN/SX at 34. This is an alternative way to short the market but not without risk.  I believe it will trade at a carry before all is said and done.

 

Bean Vols:

April 17 ½ up 1 ½

May 20 up 1

July 20 ¾ up a ½

Nov 20 up a ¼

 

Bean straddles:

April 1020 str 42-43 ½

May 1020 str 65 ½-67

July 1020 str 98-100

Nov 980 str 127-129

 

Bean players:

FI Bot 300 April 910 Puts.75

Tenco Bot 700 May 1060 Calls 15.75

Jefferies Bot 300 Jul 1000/900 Puts spds/ Sold 300 Jul 1100 Calls 8-8.75 db

TJM Bot 350 May 1060/1100 Call spds 8-8.25 db

Rosenthal Bot 2000 April 1010/1000 Put spds 4 db

Rosenthal Sold 300 WK4 1000 Calls 25-30

Jefferies Bot 200 May 1040/1060 Call spds 7.25 db

Obrien Bot 2500 Jul 960 Puts 21.75

JP Morgan Sold 500 April 1030 Calls 16.5-18

Rosenthal Bot 200 May 970/940 Put spds 6 db

Rosenthal Bot 250 May 970/930 Put spds 7 db

Rand Bot 2000 April 1020 Puts 18.75-19/ Bot 860 May futures 1027

ADM Bot 250 April 1020/990 Put spds 9.875 db

Rosenthal Bot 500 April 1030 Puts 22.75-23

Stern Bot 800 Jan 740 Puts/ Sold 800 Nov 740 Puts 1.375 db

Rand Sold 300 May 1060 Calls 20.75

Marex Bot 1000 April 1040 Calls 16.25/ Sold 420 May futures 1027.5

Obrien Sold 420 Sep 1020 Calls 57.75/ Bot 210 Sep futures 1014

FI Bot 400 Jul 1060 Calls/ Sold 400 Jul 960 puts 17.5 db/ Sold 272 Jul futures 1034

Rand Sold 500 Jul 900/860 Put spds 4.25 credit

Rand Bot 500 Sep 960/940 Put spds 7.125 db

Rand Bot 500 Nov 1000/1100 Call spds 35.25 db

Obrien Bot 600 May 1000 Puts/ Sold 1200 May 900 Puts 15.5 db

Rosenthal Bot 500 May 980 Puts 16.5

FI Bot 1000 May 970/910 Put spds 10 db

Jefferies Sold 200 May 930 Puts/ Sold 200 May 1110 Calls 13-13.125 credit

ABN Bot 500 May 1000/950 Put spds 15 db/ Bot 100 May futures 1018.5

Rand Sold 500 May 1060/1000 Put spds 33.25-33.5 credit

Jefferies Sold 400 May 960 Puts/ Sold 400 May 1080 Calls 22.25-22.5 credit

 

 

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

 

Data source: Jon Karmin and Jeff Pogonitz bean option brokers