Volatile Markets Create Wide Price Swings In Option Prices.

The recent volatility in the grain markets, such as, Soybeans,  has caused many of the option prices to swing wildly. For example, the November 2012 Soybean $17 call option could have been purchased for as little as $75 on June 1, 2012. When November 2012 Soybeans peaked on July 20, 2012, the November $17 call option was worth $4,250 at one point during that trading day. Yesterday, July 24, 2012, with the big sell-off in the grains, including Soybeans, the value of the November $17 call option had fallen to an intraday low of $150. It just goes to show that with this kind of volatility, any trades have to be managed very, very carefully. Profits can accumulate-and vanish-extremely fast in these very volatile markets.