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onida, south dakota | implied volatility is at about 18%...........for nov beans..................that is very cheap
bottom end of the range for the last 5 years
last year it got to 45-50%...................at one time
so a longer term call option could make you very good money even without a bounce in the board
as example if you bought a 14.00 NOV call for 54 cents.............and in a month implied volatility jumped to 30% in theory the call option would be worth 91 cents...........and thats if the board doesn't do anything
i would note that my experience has been grain commodity options tend to see volatility jump when the markets bounce...............about the opposite as stock option volatility
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Soybean calls??
