CBOT options

[ray]

I am trying to make sense of the CBOT options quotes (ie) The 30 min. delay snapshot of option quotes @ www.cbot.com/mplex/quotes/13opt/13dwy9n.htm What are the units and what do the "a" and "b" and "n" stand for ?

[Mufferaw]

A very good question! They seem to defy common sense don't they? <pr> Since we've been talking about wheat we'll use July wheat calls as the example. For Chicago, the units are $/bu. (in US$). It is very confusing because they leave out the decimals, so you have to put in a decimal. It is also very confusing because if you look at the table of settled values the decimal is two units from the right (ie. 310 = 3.10). If you look at the table of 30 min delays, it is three units (ie 3100 = 3.100)!! It gets worse! When they use 3 decimals it is because they are showing in eighths of a cent. I'll come back to that. (This is the way satellite systems report too.) <p> No matter what source you used, there will be a series of numbers in order at the border of the table. In this case they are across the top, in other tables they are down the side. They are the "strike prices". So 2600 is $2.60/bu strike price, 3200 is a $3.20 strike price. In other tables (e.g. the table of settled values) 320 would be $3.20. The rest of the table tells you about the trading activity that day — the high, low, "Net chg" is the change from the previous day. Most of the time it is the last trade (or in the case of the closes, the settled price) that you care about. <p> So, right now a July 3100 call (3.10) shows a "last1" of 84. Move the decimal over one. The "4" stands for 4/8 of a cent (blame the Americans not me!). So the July 3100, 84 means a July 3.10 call is 8 4/8 = 8 ½ cents a bushel. To pick another one: July 2900 shows 132. That is a July 2.90 call and it costs 13 2/8 = 13 1/4 cents/bu. <p> The "a" "b" are indications of price, but nothing has actually traded at that price. "A" is for "ask", "b" is for "bid" or "buy". So if it says 10a, that means someone is willing to sell the option (is "asking"for that price) at 10c/bu. <p> I don't know about "n", or "c". Those seem to be on the settled table and probably indicate nothing actually traded at the value. The "n" might mean there were no bids or asks and the "c" might mean it was calculated. Perhaps someone else knows. In the meantime, I sent an email to the CBOT through their "contact us" link. I'll let you know if I find out. <p> Do you want to take a stab at reading soyoil puts?

[Mufferaw]

Here is the answer I got back from the CBOT, about what "c" and "n" mean: <p>"The c stands for cabinet, which is used to designate a trade lower than the minimum tick fluctuation. In Corn options for example, the minimum tick is 1/8 of a cent or $6.25. A cabinet trade in this option can be priced at $1 to $6. So a price of 1c does not indicate 1/8 ($6.25) but rather $1. These trades are generally done by options traders who have a large amount of contracts in a particular strike price that is quickly nearing expiration. It allows them to liquidate positions in strike prices where the option's value is at a minimum. A "n" designates a nominal settlement price. This indicates that a particular strike price did not trade that day and was settled nominally by the Clearing Corporation." <p>

[Mufferaw]

I am a broker at the Chicago Board of Trade specializing in the agriculture markets, and new to Agriville. I will be happy to answer any questions that you may have regarding our garin markets here.