ACE Corn - Mar 30, 2019

Below is an illustration trading futures options on corn.  Our post shows bullish and bearish positions using a combination of call and put options.


Trade Options on Futures

Corn * Directional & Neutral Positions

Get your copy of Paul Forchione's book, "Trading Calendar Spreads" or "Strangle Swaps".  Learn techniques from a professional options trader to manage risk while speculating on futures markets.

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Volatility

Options fall into the category of being slightly undervalued in non-volatile markets in the weekly options report. 
Ask about the Weekly Option's Report for more information or watch our video.

ZC OptV

ZC Quickstrike Vol


Notes:

Contract Size - 5,000 bushels (~127 MT)

Tick Size:  Cents per bushel. 1/4 of one cent per bushel ($12.50 per contract)

Trading Hours: Sunday – Friday, 7:00 p.m. – 7:45 a.m. CT and Monday – Friday, 8:30 a.m. – 1:20 p.m. CT.

* Tip: Understanding what the numbers mean when looking at Corn prices. The quotation you see is U.S. dollars and cents per 1/4 tick. Each contract you are buying or selling is cents per bushel.  A 1/4 cent tick move is $12.50 USD.  Options move in 1/8 cent tick or 0.125 cents which is $6.25 USD.

?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here to read a helpful tip about Corn futures and options


Corn

Below are charts for reference.

ZC daily

* Tip: To view a larger chart image, simply right click on the image with your mouse. Next, select view image. Be sure to click the back arrow on your browser to go back to the original page.

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Strategies

Below is an illustration of a directional calendar spread if prices were to rebound. Strategy has positive time decay and Vega if implied volatility were to increase.

ZC calendar bull

Below is a Strangle Swap covering a range with both positive time decay and Vega as above.  Structure begins delta neutral and would be adjusted as markets move.

ZC sswap