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VolatilityOptions fall into the category of being slightly undervalued in non-volatile markets in the weekly options report.
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.
Below are illustrations of strategies. Given the upcoming WASDE on Aug 12th, one could trade the outright options. Butterfly trade below would benefit from markets moving rangebound and adjustable. Both the straddle and backspread are not meant to be held beyond the report given time decay and would receive optimal benefit from a large directional price move.
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.
Long Call or Put
Broken Wing Butterfly