Bean Option Recap From Jon Karmin

Beans again traded higher on the Outlook Forums estimate of lower acres to beans and quickly hit stops as short SH option traders had to cover gamma.  However,  we settled substantially off our highs.  Day traders have gotten massacred the last few days as we are one day down the next and then up again.  I am convinced the way to trade this market (and all markets for that matter) is don’t let order flow dictate your position but rather step in on extremes when the market is handing you your desired position at a relatively low cost.

 

Bean vols:

March vol 23

April vol 17 ½ up a ½

May vol 20 up 1

July vol 20 ¾ up 1

Nov vol 19 ¾ up a ½

 

Bean straddles:

SH 1010 13-14

SJ 1020 44.5-46

SK 1020 67.5-69

SN 1020 98.5-99.5

SX 980 126.5-128

 

Bean players:

Rosenthal Bot 250 April 1020/1060 Call spds 9 db

ADM Sold 350 March 990 Puts 4.125-4.25

Obrien Sold 1000 Nov 900 Puts 29.625-29.875/ Sold 250 Nov futures 978

Jefferies Sold 500 Nov 900 Puts 29.625

ABN Bot 1500 May 1020 Calls 26/ Sold 660 May futures 1004

FI Bot 2000 May 920 Puts 7.375-7.5

Obrien Bot 300 March 990/980 Put spds 1.5 db

Jefferies Bot 750 May 960/920 Put spds 8 db/ Bot 36 May futures 1009.5

EDF Bot 300 March 1000 Puts 2.25-3.75

ADM Bot 400 March 990 Calls 17-19.5

ABN Bot 500 May 1020 Calls 28.25/ Sold 240 May futures 1010

Rosenthal Bot 250 May 970/930 Put spds/ sold 250 May 1030/1060 Call spds even

Rosenthal Bot 2000 March 1010 Puts 5.5-6.25

Rand Sold 500 May 1040 Puts 45.5-45.75

Tenco Bot 600 March 1000 Puts 2.25-2.5

DRAX Sold 500 March 1020 Calls 3-4

Rand Bot 2000 May 1000 Puts 27.25/ Bot 800 May futures 1015

ADM Bot 500 March 1000 Puts 3/ Bot 120 March futures 1012

FI Bot 500 May 1030/1060 Call spds 10.875 db/ Sold 75 May futures 1016

TJM Sold 500 April 1020 Calls 19.5

Macquarie Bot 1800 April 1050 Calls 9.625-9.75/ Sold 494 May futures 1016

Obrien Bot 300 March 1000/990 Put spds 1.875-2 db

Macquarie Sold 300 May 1030 Calls 26.25/ Bot 132 May futures 1013

Rosenthal Sold 500 March 1010 Puts 8.5

Rand Bot 1000 March 1000/990 put spds 1.75 db

 

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

 

Data source: Jon Karmin and Jeff Pogonitz bean option brokers