Agricultural Options. November CME Group. All rights reserved.

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Transcription:

Agricultural Options November 2018

Ag Option Product Suite Highlights Livestock spread volume on CME Globex hit an all-time high of 35%, led by verticals, 3-ways and delta-hedged options Weekly options ADV was 6,111 contracts, the second best month ever driven by activity around the November WASDE and the G-20 summit 64% of all Dairy options traded on CME Globex as a spread Option Product Nov ADV Year/Year % Change Corn 73,062 0% Soybean 63,044 15% Chicago SRW Wheat 25,408 11% Soybean Meal 6,797-17% Live Cattle 7,729-34% Hogs 10,829 4% Soybean Oil 6,146-34% Short-Dated New Crop Option 844 5% KC HRW Wheat 2,569 102% Ag Weekly Option 6,111 58% 2

Livestock Market Structure In November, the most active strike for Dec Lean Hogs was the 60 call trading 9,952 times 3

Weekly Options Corn Weekly options increased activity around the November WASDE and G-20 Summit, below are the top three trading days 4

Historical look at March implied volatility at end of November 5

Dairy Market Structure 6

Contact Info Steven A Stasys Senior Director, Agricultural Options steven.stasys@cmegroup.com 312-648-3822

Disclaimer Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a percentage of a contract s value is required to trade, it is possible to lose more than the amount of money deposited for a futures position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade. All references to options refer to options on futures. Swaps trading is not suitable for all investors, involves the risk of loss and should only be undertaken by investors who are ECPs within the meaning of section 1(a)12 of the Commodity Exchange Act. Swaps are a leveraged investment, and because only a percentage of a contract s value is required to trade, it is possible to lose more than the amount of money deposited for a swaps position. Therefore, t raders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade. Any research views expressed are those of the individual author and do not necessarily represent the views of the CME Group or its affiliates. CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chic ago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. KCBOT, KCBT and Kansas City Board of Trade are trademarks of The Board of Trade of Kansas City, Miss ouri, Inc. All other trademarks are the property of their respective owners. The information within this presentation has been compiled by CME Group for general purposes only. CME Group assumes no responsibility for any errors or omissions. Additionally, all examples in this presentation are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. All matters pertaining to rules and specifications herein are made subject to and are superseded by official Exchange rules. Current rules should be consulted in all cases concerning contract specifications. Copyright 8