Whats everybody think about selling aug 102 straddles in cattle? Around 20 days till exp and based on today's closing prices all the market needs to do is stay between 106 and 98 and we can make money........ Thoughts? I called the floor on that oct hog butterfly and they were quoting my like 3-4 cents for that trade........FUCK THAT!!! Anybody else doing anything in meat options?
Why not sell a condor and collect the premium that way. At least your risk is limited. I'm short the 96 puts and looking to cover as a spread. I like selling options but think there are ways with less risk than selling straddles.
Trying to sell some aug 97 puts in cattle today for 1.00 Cattle has absolutely plummeted due to slow cash and poor boxed beef prices......however I think that hardly jusifies a 9 dollar drop in cattle. Good support at 97 and with only 14 days left till exp I really like this trade but don't want to pay the spread to get it done. So im just sitting on the offer.
If you are attempting to place an option spread in the meats market make sure you are getting a bid/ask from the floor. Execution is King. I am a broker at Global Futures and would be able to assist you in the quoting and placement of any trades that go directly to the floor. Devin Brady Senior Market Strategist dbrady@globalfutures.com 877-367-3177