Below is an illustration trading futures options on Soybeans. Our post shows bullish and bearish positions using a combination of call and put options.
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Trade Options on Futures
Soybeans * Directional & Neutral Positions
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Soybeans
Term Structure
Volatility
Notes:
Contract Size - 5,000 bushels.
Tick Size: Outright: U.S. dollars and cents per bushel
Trading Hours: CME Globex: Monday – Friday 8:30 a.m. – 1:20 p.m. CT
* Tip: Click here to read a helpful tip about Soybean futures and options
Charts
* Tip: Understanding what the numbers mean when looking at Soybean prices. The quotation you see is U.S. dollars and cents with 1/4 of one cent (0.0025) per bushel = $12.50.
2021 WASDE Report Release Dates: March 9, 2021 12pm ET. April 9, 2021 12pm ET.
Latest, Biggest, Busiest
Below is a snapshot with what's going on in the world of options with the most actively traded spreads.
Enlarge by right clicking mouse over each image and select 'open in a new tab'
Below is a May OZ 1600/1800 Bull Call Spread shown in the middle column above with ~6,050 positions on the spread. I've listed alternatives below.
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Option Strategies
* Tip: To view a larger chart image, simply right click on the image with your mouse. Next, select Open Image in New Tab.
Below is a quick glimpse on particular spreads that stand out in the markets. You can see this from the number of bid - offer activity and open interest as we explain in our podcast.
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.
Calendar Call
The alternate position illustrated below is a calendar call. Position has positive time decay (Theta) and negligible impact from changes in implied volatility.
Strategy Target Range
Vertical Swap Put
Below is a variation if the market were to move directionally lower. Position has positive time decay and benefits from an increase in implied volatility.
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