ACE Corn - May 22, 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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cme virginia

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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


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 weekly

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 iron condor if prices were to rebound. It would benefit if volatility were to trail back to historic levels after markets have priced in a push higher. Strategy has positive time decay.

zc ironcondor

If prices hiked up 15 cents, the position could be adjusted as below.

zc ic adjust