Calendar Spread Options are options on the price differential between 2 contract months, rather than on the underlying asset itself. Therefore, they offer alternative hedging capabilities compared to standard options, and can provide a more precise hedge against adverse movements in price spreads in the grain and oilseed markets.
Calendar Spread Options are sensitive to the value and volatility of the spread itself, rather than the price of the underlying commodity. They are more efficient than combining options on 2 different months in an effort to replicate the spread, and provide a better risk management device for hedgers and market participants exposed to calendar spread risks.
|Corn||Chicago SRW Wheat||KC HRW Wheat||Soybean||Soybean Oil||Soybean Meal|
|Dec-July||July-July (1 year)||July-July (1 year)||May-Nov||Sep-Dec||Sep-Dec|
|Dec-Dec (1 year)||Dec-Dec (1 year)||Dec-Dec (1 year)||July-Nov|
|Jan-Mar (different calendar years)|
* A consecutive spread is a spread between the two closest maturity months.
The consecutive futures calendar spreads and the longer dated spreads will be listed at all times. When the existing longer dated spreads expire the corresponding longer dated spreads for the following year will be listed.
Grain and Oilseed CSOs offer: