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Do you use the expensive ICE data for the trading of soft commodities options, or do you also benefit from the time-delayed data, for example from barchart.com?
I use delayed data (from Trade Navigator) for the chart. To enter the trade, there is the following possibility for customers of DeCarley (and perhaps other brokers): If you enter the option as a buy or sell, the tool shows the live (!) bid / ask, to allow for placing an order. This service is free of charge. It does not work at Interactive Brokers.
I noticed the LHJ C80 is very expensive (about 0.900).
Is that normal because it is so far out in DTE? Otherwise it looks quite overvalued, as it is close to the seasonal low then.
The reason is the long time until expiration and the many things that can happen until then. The hogs that will be sold against the April contract are not yet born.
In the meat markets, do you ever consider buying higher Calls for protection, as in CL?
E.g. in our example, buying the LH C90 for maybe 0.150 if you can get it for that price?
No, usually I do not buy protection in the meat markets.
There is a very small number of very large gaps, mainly caused by deseases. The problem in the meat markets is significant trends, that can develop and never seem to end. In this case it is a good idea to get out in time.
I like selling strangles to win at least on one side. But often it is necessary to leg in the two spreads, which is another risk.
For me the only reason to buy protection is if I sell these options in my IAB account. Here margin is extraordinary high for naked options.
I can see where this info is good to have. You pay much attention to fundamentals an i am trying to do more of it myself. Is there some place where you look to find reports similar to the USDA for other countries?