Long and Short of Futures Options: Diving Back into Ags
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What to Know: Discussing crop reports and their impact on the ag options. Breaking down the recent volume trends in corn & wheat options - significant interest in upside protection in corn right now. Many traders, hedgers and speculators migrating into the weekly options vs. longer-term options
What\'s New: Corn and wheat volatility are on nearly equivalent levels - an unusual development that holds a great deal of potential for options traders. At these price/volatility levels, can wheat be an effective feed substitute for corn? How will current corn & wheat volatility levels impact planting decisions for the coming year? Volatility is a new asset class and corn & wheat VIX will be the latest additions to the VIX family of volatility products. Are more professional traders/market makers flocking to the corn pits?
What\'s on Your Mind: Taking on listener questions: Is the CME shifting the focus of its options team away from institutional customers and toward the growing audience of retail options traders? Is there someone on the CME options team tasked with addressing the needs of retail traders?
Does CME plan to begin analyzing unusual options activity in future episodes of LSFO?