| GrainTrader - 12/8/2023 06:12
I have always felt like I didn’t have the best handle on options given my futures market experience/exposure. I’d like some better education on options and future expected valuations.
I’m looking for some sort of options calculator that I can enter some expected value of the commodity at X and Y date to get some of my own risk/reward ideas.
Something Like, the July 24 corn contract is trading at 508 currently. The July 650 call is at roughly 3.5 cents now. Of July corn is trading at 5.85 on May 10th, what is the expected value of the 650 call at that time?
Try CME group quick strike. You must register but it will allow one to do multiple what if’s and save them to compare.
Before you can answer your question you must first know interest rates and then Implied Volatility
Also keep in mind how IV tends to work, for grains it spikes typically during rallies. For the stock market it tends to spike when the market is under pressure.
Here is your example at 6% interest. With 35% IV and 50% IV
Makes a big difference
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Options calculator (if it’s X price at Y later time)
