I think today's November Soybean future rise is
overdone. I have been selling 30 cent 3 to 2 short bean
future options spreads at various levels above the
market.
I think this type spread can be changed quite easily
if I am wrong. I am for now effectively short some
naked futures but I also have cheap wings.
My thinking on the short is that nearly every year
the August crop report is too pessimistic. I think beans
are hitting a head and should top around 1230. South
American crop was large. So I think today is just a stop
hitting rally day. I am hoping to add lots of short deltas
if beans weaken after today.
overdone. I have been selling 30 cent 3 to 2 short bean
future options spreads at various levels above the
market.
I think this type spread can be changed quite easily
if I am wrong. I am for now effectively short some
naked futures but I also have cheap wings.
My thinking on the short is that nearly every year
the August crop report is too pessimistic. I think beans
are hitting a head and should top around 1230. South
American crop was large. So I think today is just a stop
hitting rally day. I am hoping to add lots of short deltas
if beans weaken after today.