IF:Sugar Futures Shine as Options Volatility Blows Out: Options Price Sheet Leads the Analysis
Sugar rallied almost a cent and a half on Friday to areas not seen since the July Futures Contract was still on the Board. Implied Volatility blew out as Options Buyers abounded. Sugar capped off a week with prices extending to October contract highs. In addition, the October/March spread closed at 144 points; it is the largest difference since November 2010. Sugar is not only experiencing a tremendous rally but its spreads are extremely volatile.
The Volatility in Sugar enables Options Traders to focus on Implied Volatility and the Skew to establish positions which can meet their Risk/Reward profile. On a nightly basis, Options Strategy Network provides an Options Price Sheet like the one below for Sugar. The Nightly Options Price Sheet provides Settlement Information for 10 different commodities including Coffee, Corn, Cotton, Crude Oil, Euro, Gold, Soybeans, S&P, Sugar and Wheat. Contact us at info@optionsstrategynetwork.com and we’ll be happy to add you to the list of nightly recipients.
By examining the information below, one has the ability to decipher what type of strategy makes the most sense given their market bias. One can compare the Historical Volatility to the Implied Volatility. In addition, one can get a good idea of how the Implied Volatility Skew affects overall options pricing. (Look at the Implied Volatility of the 26 Puts Compared to the 36.75 Calls; the Skew has blown out substantially recently). At Options Strategy Network we work to Educate and Train clients to improve their understanding of the Options Markets. Our Options Traders’ Essential Outline provides a look at topics that Traders need to know in order to get the best execution and value when trading Options Markets. Contact us to see how our methodology can bring your trading to the next level.
Whether the proper trading strategy involves being Long or Short Options or whether a ratio spread might be more effective than a Call or Put spread; a lot of information should be analyzed before a position is established. There are numerous permutations for picking the ideal strategy; Trainers at Options Strategy Network provide the insight and training necessary to make the decision process second nature. Call us at 917-656-1767 to set up a Personal or Group Training profile. Use the Table below to see what type of Strategy you might choose with added information.
