CBOT Announces Strong Volume For Serial Options

The Chicago Board of Trade announced today that more market users are customizing their agricultural risk management with short-term hedging tools called serial options launched by the CBOT one year ago. Serial options are short-term, low-cost contracts which trade for 30 days and expire in months which do not have a regular option contract available. The CBOT developed serial options in response to suggestions by customers worldwide. CBOT Chairman David P. Brennan said, "The purpose behind these short-term hedging tools is to meet the needs of our customers. Serial options provide producers, millers, elevators and other market users with year-round access to options contracts at a lower cost and with greater flexibility and opportunity." Since the CBOT launched serial options on April 13 last year, about 375,000 contracts have been traded, representing nearly 4% of total agricultural option volume during that period. Soybean oil serial options in March accounted for 8.2% of total soybean oil option volume for the month. In January, serials on soybeans represented 7.1% of total soybean option volume for the month. Serial options serve the same fundamental function as currently traded standard CBOT futures-option contracts, with two main differences: * Serial options are listed for trading only on the nearby futures contract -- unlike a standard futures-options contract which can be listed for deferred, distant or back future contract months. This means some hedgers can mange their short-term price risk at lower cost -- because serial options might enable the hedger to choose an option month that matches the frame of his cash market risk. * There is a five-day overlap between old and new standard and / or serial option contracts. This time overlap allows market users to roll expiring standard and or serial option contracts positions into a new standard and / or serial option contract without gaps in option coverage -- thus ensuring seamless, uninterrupted coverage. Serial contracts are available for corn, soybean, soybean meal, soybean oil, wheat, oats and rice contracts. For more information on serial options, call the CBOT at 312-341 3257.