Trying shorting beans with ratio bear call spreads

Discussion in 'Options' started by vanv0029, Aug 12, 2013.

  1. vanv0029

    vanv0029

    I think today's November Soybean future rise is
    overdone. I have been selling 30 cent 3 to 2 short bean
    future options spreads at various levels above the
    market.

    I think this type spread can be changed quite easily
    if I am wrong. I am for now effectively short some
    naked futures but I also have cheap wings.

    My thinking on the short is that nearly every year
    the August crop report is too pessimistic. I think beans
    are hitting a head and should top around 1230. South
    American crop was large. So I think today is just a stop
    hitting rally day. I am hoping to add lots of short deltas
    if beans weaken after today.