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Volatility
Below illustrates where implied volatility is slightly below statistical levels.
Term Structure
Notes:
Contract Size - 5,000 bushels (~136 metric tons)
Tick Size: Outright: 1/4 of one cent per bushel ($12.50 per contract)
Trading Hours: CME Globex: Sunday - Friday 8:30 a.m. – 1:20 p.m. CT.
* Tip: Understanding what the numbers mean when looking at Soybeans prices. The quotation you see is U.S. dollars and cents per 1/4 of one cent per bushel. Each contract you are buying or selling is price per contract 5,000 bushels A 1 tick move is $12.50. Notional value of 1009'4 USD per contract.
?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here to read a helpful tip about Soybean futures and options
Soybean
Below are weekly and daily charts for reference.
Directional Strategy -
Below is calendarized diagonal spread starting neutral with a slight bias to the downside. It can be adjusted as price reaches extemes or reversed if prices suddenly run higher.
The % yield shown in the diagrams below represent an estimated return on margin from projected dates shown below. The structure has positive time decay which is an advantage over holding outright options.
Beneath is a bear put spread.
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