Using straddles in a sideways market, both new and review

first_imgShare Facebook Twitter Google + LinkedIn Pinterest CornCorn traded within a 10-cent range this previous week, ending 1 cent lower than last week. The Dec futures low at $3.44 continues to hold as the bottom for the year so far. If this holds for another week or two, there is a chance this will be the year’s low.Early yield reports indicate yields are as expected or better than what farmers were thinking a month ago. Prices of $4 will be difficult on the Dec or Mar futures if this yield trend continues. I’m looking for corn to be range-bound between $3.45 to $3.75 through Christmas. SoybeansDespite harvest getting into full swing this previous week, soybeans increased another 16 cents. Basis levels continue to widen to last year’s harvest levels. Spreads between contract months are still wide, indicating plenty of supply and encouraging storage. This type of market action doesn’t make sense from a fundamental point of view and could be an indication that beans might be looking at a seasonal top. Based upon futures being down 10 cents this morning the market might be paying attention to fundamentals.Brazil and Argentina bean planting has had a slow start due to weather, but there is still plenty of time. Forecasts suggest better weather is coming. Two weeks from now South American weather will be the most important market driver for soybeans. Market action: Added profits from selling callsLast Friday Oct options expired. The following details the results of my Oct trades affected.On 6/30 after the USDA report was released (Dec futures were around $3.85), I sold a $3.80 Oct call for 19.5 cents on 5% of my ’17 corn production. What does this mean?• If Dec corn was above $3.80 on 9/22 I have to sell corn for $3.80 and keep 19.5 cents ($3.995 total).• If Dec corn was below $3.80 on 9/22 I keep the 19.5 cents to use on another trade in the future.On 8/24/17 (Dec corn was $3.55), I sold an Oct $3.55 call on 10% of my production for 8.5 cents. What does this mean?• If Dec corn was above $3.55 on 9/22 I have to sell corn for $3.55 and keep the 8.5 cents ($3.635 total).• If Dec corn was below $3.55 on 9/22 I keep the 8.5 cents to use on another trade in the future.What happened? Corn closed at $3.535, so both options expired worthless. I keep all the premium from both trades that I will add to a future trade. Using straddles in a sideways market: New 2017 tradesLike many farmers, I wish I had more corn sold for above $4. But, I don’t and sitting around hoping corn goes above $4 is not a marketing plan. It’s time to analyze my options with the current market conditions. I had some success in 2016 with adding premium using straddles, so I reviewed my options for 2017. I think there is a good chance the market will stay sideways for a while. Using straddles can be complicated, but they can also be profitable when there is little price movement. Generally speaking, following details what happens with a straddle trade:Market sideways: I collect significant premium that can be added to a future sale, which will help me hit profitable price points in a sideways market.Market goes up: I have to make a sale at the top of a range I specify through the sale of a straddle.Market goes down: I will have to remove a previous sale, which would be a little disappointing. However, I still get to collect much of the straddle premium. If the market rallies in the future then this trade can still end up being profitable so I think my risk is limited with the added risk of this type of trade.As always, I’m hoping the market goes up, but I’m preparing if it doesn’t.Following are the trade details. Trade 1: On 9/19/17 I sold a Nov $3.55 straddle for 17 cents (I sold the $3.55 put and the $3.55 call and collected a total of 17 cents) for 10% of my production. The trade expires 10/27/17. The market will likely find a bottom and bounce off of it in the next month.Potential benefit — If Dec futures close at $3.55 on 10/27, I keep the 17-cent premiumPotential concern — Reduced or no premium if the market moves significantly in either direction.• For every penny lower than $3.55 I get less premium until $3.38. At $3.38 or lower a new crop corn sale is removed, but any profits gained on that trade can be added to a future sale. For every penny higher than $3.55 I get less premium until $3.72. At $3.72 or higher I have to make a corn sale at $3.72 against Dec futures. Trade 2: On 8/30/17 I sold a March $3.70 straddle for 38 cents (I sold the $3.70 put and the $3.70 call and collected a total of 38 cents) for 10% of my production. The trade expires 2/23/18. For late February, I’m expecting a small rally but in general I expect another sideways market similar to last year.Potential benefit — If March futures close at $3.70 on 2/23/18, I keep the 38-cent premium.Potential concern — Reduced or no premium if the market moves significantly in either direction.• For every penny lower than $3.70 I get less premium until $3.32. At $3.32 or lower a new crop corn sale is removed, but any profits gained on that trade can be added to a future sale. For every penny higher than $3.70 I get less premium until $4.08. At $4.08 or higher I have to make a corn sale at $4.08 against March futures. Trade 3: On 8/30/17 I sold a July $3.80 straddle for 50 cents (I sold the $3.80 put and the $3.80 call and collected a total of 50 cents). The trade expires 6/22/18. I’m expecting another sideways market similar to last year in late February.Potential benefit — If July futures close at $3.80 on 6/22/18, I keep the 50-cent premium.Potential concern — Reduced or no premium if the market moves significantly in either direction.• For every penny lower than $3.80 I get less premium until $3.30. At $3.30 or lower a new crop corn sale is removed, but any profits gained on that trade can be added to a future sale. For every penny higher than $3.80 I get less premium until $4.30. At $4.30 or higher I have to make a corn sale at $4.30 against July futures.Trade 4: (Non-Straddle) On 8/31/17 when the market rallied off of the low for the year, I sold a $4 July corn call for 19 cents on 5% of my 2017 production.What does this mean?• If July corn is above $4 on 6/23 I have to sell corn for $4 and keep 19 cents ($4.19 total).• If July corn is below $4 on 6/23 I keep the 19 cents to use on another trade in the future.I hope corn rallies above $4 before July, but based upon the market recently and what I know today, there is a strong possibility it might not. Therefore, I want to collect premium on a small portion of my production if what I hope doesn’t happen happens. What does all of this mean?I have basically placed a “bet” on 35% of my 2017 production that prices will not be above an average of $4.15 (including carry on the Dec and March trade) at the end of next June. The following summarizes what happens based upon where the market is at the end of June:If corn is above $4.15 I have to sell at that price.If corn stays between $3.60 and $3.80 I will collect enough premium with these trades to still get around $4 for 35% of my production.If corn is below $3.30, that would be disappointing. I would still collect a lot of the premium from the straddle. However I would have to remove some previous sales. This could result in some additional profit, but it would be less than just keeping the previous sales in place. Because the markets typically don’t hit their low in the Spring and early Summer this isn’t something I’m overly worried about today with the information I have, but I’m prepared if it does.Most farmers are hoping corn futures go to $4.20 or even $4.50 by next summer. Me too! I will still get to sell a significant amount of my 2017 crop at those price levels and I could start locking in next year at the same prices or even better. If prices DON’T get to $4.20 or $4.50 I have a plan in place that keeps my farm operation profitable. Jon grew up raising corn and soybeans on a farm near Beatrice, NE. Upon graduation from The University of Nebraska in Lincoln, he became a grain merchandiser and has been trading corn, soybeans and other grains for the last 18 years, building relationships with end-users in the process. After successfully marketing his father’s grain and getting his MBA, 10 years ago he started helping farmer clients market their grain based upon his principals of farmer education, reducing risk, understanding storage potential and using basis strategy to maximize individual farm operation profits. A big believer in farmer education of futures trading, Jon writes a weekly commentary to farmers interested in learning more and growing their farm operations.Trading of futures, options, swaps and other derivatives is risky and is not suitable for all persons. All of these investment products are leveraged, and you can lose more than your initial deposit. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful, and in accordance with applicable laws and regulations in such jurisdiction. The information provided here should not be relied upon as a substitute for independent research before making your investment decisions. Superior Feed Ingredients, LLC is merely providing this information for your general information and the information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision. The contents of this communication and any attachments are for informational purposes only and under no circumstances should they be construed as an offer to buy or sell, or a solicitation to buy or sell any future, option, swap or other derivative. The sources for the information and any opinions in this communication are believed to be reliable, but Superior Feed Ingredients, LLC does not warrant or guarantee the accuracy of such information or opinions. Superior Feed Ingredients, LLC and its principals and employees may take positions different from any positions described in this communication. Past results are not necessarily indicative of future results. He can be contacted at [email protected]last_img read more

Indian women create history, win 4×400 relay gold

first_imgIndian women’s 4x400m relay team celebrates after winning gold during the CWG at the JN Stadium. PTIIndia won their second athletics gold at the Delhi Games with the women’s relay team’s stellar show in the 4×400 race at the JN Stadium here. Medals | WATCH VIDEO On the same day, India also collected four athletics bronze, taking their tally in track and field to an unprecedented 12.Indian women’s 4x400m relay team added another gold to the one won yesterday by discus thrower Krishna Poonia as medals rained for the home country in front of a cheering near-capacity crowd at the Jawaharalal Nehru Stadium.VIDEO: HEENA, ANNU GIVE INDIA 31ST GOLDPaddlers keep medal hopes aliveBreathtaking closing show on cardsThe men’s and women’s 4x100m relay teams, triple jumper Renjith Maheswary and javelin thrower Kashinath Naik added a bronze each.After today’s events, only men and women’s marathon remained in the athletics competition.In terms of number of medals won, it turned out to be the most productive day for India. Yesterday, India swept women’s discus throw with Poonia winning gold to break a 52-year-old drought, while Harwant Kaur and Seema Antil bagged a silver and bronze respectively.The 12 medals, including a gold, is more than the 10 medals the country had won in the earlier editions.The women’s 4X400m relay quartet of Manjeet Kaur, Sini Jose, Ashwini Akkunji and Mandeep Kaur set the track ablaze by winning the race in 3:27.77, ahead of Nigeria (3:28.72) and England (3:29.51).Manjeet was running second at the end of first leg and Jose maintained it. Akkunji then took India to lead with a fast run in the third leg before Mandeep saw off a late surge from a Nigerian to cross the finishing line ahead of the rest.advertisementThere were scenes of wild celebration among the Indian officials present at the VIP stand and among the vociferous crowd. National coach Bahadur Singh termed it as the beginning of India’s emergence as an athletics power.”We have shown that we can win medals at the highest level. Athletics competition in the Commonwealth Games is of high standard. If we maintain this level for another 3-4 years, India can become an athletics power,” Bahadur told PTI.The medal-surge began with the women’s 4x100m relay team of Geetha Satti, Srabani Nanda, P K Priya and H M Jyothi finishing third in a photo finish with a timing of 45.25secs, just one-hundredth of a second behind second-placed Ghana (45.24secs). England won gold in 44.19secs.It looked like India’s final-leg runner H M Jyothi would cross the finishing line at second but Ghanaian Janet Amponsah did better and the home team had to be content with a bronze.India clocked 45.25secs, while Ghana clocked 45.24secs.The men’s quartet of Rahamatulla Molla, Krishnakumar Rane, Shammer Mon and Mohd Abdul Qureshi smashed the national record with a timing of 38.89secs.The same quartet had set a national record of 39.00secs in the semifinals yesterday.India were lagging behind in the first and second legs but Mon took them to fourth place by the end of third leg in the field of eight. Qureshi beat a runner in the final leg to take India to bronze. England won the gold in 38.74secs while Jamaica settled for a silver in 38.79secs.Triple jumper Renjith Maheswary broke his own national record by clearing 17.07m in his third of the six attempts.His earlier national record was 17.04m.Till the fifth and penultimate round, Maheswary was second, behind eventual gold winner Tosin Oke (17.16m) of Nigeria, but Cameroonian Lucien Mamba jumped 17.14m in his final attempt to win silver.”I though I would win a silver but I am happy that I won a bronze. I dedicate the bronze to my daughter Jia (born in August),” he said after the race.In the men’s 4×400 race, India finsihed seventh in 3:07.60.”I am too happy to say anything. We worked very hard and by the grace of God we finally got our prize. We practised non stop for one and a half months to get our coordination right.We have improved a lot and we have broken the national record,” he said.But the surprise medallist of the day was Kashinath Naik, who cleared 74.29m, in men’s javelin throw. The gold and silver were won by Jarrod Bannister (81.72m) of Australia and Stuart Farquhar (78.15m) of New Zealand respectively.”I am not satisfied by my performance as I could do better. But I am happy that India won its first medal in javelin throw,” Naik said later.advertisementlast_img read more

Somdev falls as India’s singles challenge ends

first_imgQualifier David Goffin from Belgium lowered Indian superstar Somdev Devvarman into the coffin as he posted a stunning 6- 2, 6- 4 first round win in the Chennai Open on Tuesday.With crowds filling the stadium and rooting for Somdev, fans hoped for a miracle.Runner- up in 2009 at the Chennai Open and second round loser in 2010, Somdev could not reproduce the magic which he has shown in the recent past. India’s singles challenge ended with Somdev’s loss.They say the first event of the year is always a tricky one. Somdev realised it as he was unable to come up with the big shots. As one who had become the toast of the nation after his efforts in the Commonwealth Games and the Asian Games, this was a night of deep disappointment.To his credit, Goffin, just 20, soaked in the atmosphere and finally won when Somdev hit a forehand long. Overall, the way Goffin served and churned out the groundstrokes, there was no doubt he deserved to win.People will talk of Somdev loving the ambience, but his inability to string together big points made for bad viewing on Tuesday.” I am very disappointed with the result. Hopefully, the season will get better for me,” Somdev said at the press conference.” I was hitting very well in practice.That obviously doesn’t count when you are playing a match. I do not want to make any excuses but I can tell you it was a bad day. I am not going to kill myself over it,” added Somdev, with a laugh.advertisementTitle favourite Tomas Berdych came out all guns blazing as he demolished Frederico Gil of Portugal 6- 0, 6- 1 in the first round.After Kei Nishikori dumped second seed Marin Cilic on the first day, no one wanted another shocker.Berdych, who is playing here for the first time, treated the audience to top quality tennis and was aggressive to the point of being ruthless.It could have been a total rout had not Gil, ranked 101, won a game after being down 0- 5. ” It is important to start well in the new season and I am happy I was able to do that tonight,” said 25- yearold Berdych. He next faces Ivan Dodig of Croatia.From the Indian point of view, there was mixed news with Yuki Bhambri losing. However, Rohan Bopanna, who plays singles rarely, showed once again he can trouble the big players as he By S. Kannan in Chennai played his heart out before losing 4- 6, 4- 6 to third seed Stanislas Wawrinka.The more one sees Wawrinka, the more one is certain that the Swiss player will never give the opponent a free point. On Tuesday, Rohan, playing on the same court where he won the Davis Cup tie for India against Brazil in September, played as well as he could.Lack of singles play was evident, but the tall and strapping Coorgi tried hard with his serve against a top class singles player.The scoreline may suggest it was a routine match, but Bopanna put his heart and soul into it.Where the Indian came short was when he made some loose sorties to the net and got passed or when Wawrinka was ripping some incredible forehand drives.One such shot came in the eighth game of the second set when the Swiss faced a break point. Wawrinka hit a full blooded forehand cross- court pile driver which had a touch of class.” It was not an easy match tonight. After losing in doubles, I was keen to do well in singles. I was playing Bopanna in front of his home crowd and I couldn’t take it easy,” said Wawrinka.Fourth- seed Richard Gasquet of France, ranked 30th in the world, ousted compatriot Edouard Roger- Vasselin 6- 1, 6- 3 to reach the second round. The Frenchman next plays Bjorn Phau of Germany for a place in the quarter- finals.Seventh- seed Xavier Malisse of Belgium, who won the Chennai event in 2007, outplayed Marsel Ilhan of Turkey 6- 3, 6- 1 in another match.last_img read more

History made as women to referee men’s AFC Cup clash

first_imgYoshimi Yamashita alongside assistant referees Makoto Bozono and Naomi Teshirogi become the first all-female cast to officiate an AFC Cup match!READ: https://t.co/L5NcULCPbv pic.twitter.com/5PaiKSECqr View comments Private companies step in to help SEA Games hosting Bucks have Milwaukee dreaming of first title since ’71 Assistant referee Teshirogi said her appointment will inspire female referees in Asia while Bozono said the experience will help in her preparations for the FIFA Women’s World Cup in June, where the trio will be among 12 officials from the AFC.“It is exciting to work with Yoshimi and Naomi. They are very experienced and have been very supportive. I will learn a lot from them,” Bozono said.Sports Related Videospowered by AdSparcRead Next — AFC Cup (@AFCCup) May 14, 2019Women officals have only previously been employed as assistant referees in AFC Cup matches, with Australians Sarah Ho and Alysson Flynn becoming the first in 2014. “This is one of my dreams,” said the experienced Yamashita, who officiated in the 2016 and 2018 FIFA U-17 Women’s World Cup and 2018 Women’s Asian Cup. “We’ve worked very hard and this is the result.”ADVERTISEMENT Female referees for the AFC Cup Final. photo from AFC Cup websiteThe Asian Football Confederation announced Tuesday that for the first time an all-female referee team will take charge of a men’s continental club cup clash.Japanese referee Yoshimi Yamashita and assistants Makoto Bozono and Naomi Teshirogi will officiate the AFC Cup match between Myanmar’s Yangon United and Cambodia’s Naga World at the Thuwunna Stadium on Wednesday.ADVERTISEMENT LATEST STORIES Cayetano: Senate, Drilon to be blamed for SEA Games mess Ethel Booba twits Mocha over 2 toilets in one cubicle at SEA Games venue Trending Articles PLAY LIST 00:50Trending Articles00:50Trending Articles00:50Trending Articles02:42PH underwater hockey team aims to make waves in SEA Games01:44Philippines marks anniversary of massacre with calls for justice01:19Fire erupts in Barangay Tatalon in Quezon City01:07Trump talks impeachment while meeting NCAA athletes02:49World-class track facilities installed at NCC for SEA Games02:11Trump awards medals to Jon Voight, Alison Krauss Philippine Arena Interchange inaugurated “This will be the first time three female referees preside in the Asian Football Confederation’s club competitions, marking a new milestone in Asian refereeing,” the AFC said in a statement.The AFC Cup is the second-string Asian club competition, a rung below the AFC Champions League. FEATURED STORIESSPORTSPrivate companies step in to help SEA Games hostingSPORTSPalace wants Cayetano’s PHISGOC Foundation probed over corruption chargesSPORTSSingapore latest to raise issue on SEA Games food, logistics SEA Games hosting troubles anger Duterte Duterte wants probe of SEA Games mess Hontiveros presses for security audit of national power grid DA eyes importing ‘galunggong’ anew Don’t miss out on the latest news and information. MOST READlast_img read more