ACE Corn - August 12, 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, "Intro to Advanced Option Spreads" or "Trading Butterfly Spreads".  Learn techniques from a professional options trader to manage risk while speculating on futures markets.

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Term Structure

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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

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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: Click here to read a helpful tip about Corn futures and options


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* Tip: Click here on enlarging images


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

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Broken Wing Butterfly

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ATM Straddle

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Bullish Backspread

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Learn More

We look forward to answering your questions and helping you get started