Selling Options in Times of Extreme Volatility

In periods of extreme volatility, option sellers often enjoy unusually rich premiums — but those same conditions can turn a routine credit trade into a landmine if the market overshoots. That’s why disciplined premium sellers treat protection not as a cost, but as insurance.

Buying a cheap out‑of‑the‑money “disaster wing” or long‑dated hedge can dramatically reduce tail risk while still preserving most of the credit collected. In fast markets, the goal isn’t to squeeze every last tick of premium; it’s to stay in the game.

A small debit for protection can turn a potentially catastrophic move into a manageable one, allowing traders to keep selling premium consistently rather than recovering from a blow‑up.

July Bean Oil

July SoyBean Oil resumed its rally and established a fresh contract high. This has the chart taking aim at its third upside PriceCount objective to the 72.25 area. It would be normal to get a near term reaction from this level in the form of a consolidation or corrective trade, at least. IF there were to be another leg up to this bull move, it would be significant as the low percentage fourth count would project a run to a new all-time high over 97 cents (current record high was 91.40 from 2022).

The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved.

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk.

Learn more at www.qtchartoftheday.com

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

Cannon Edge — Your Daily Futures Snapshot for April 22nd

Daily Levels for April 22nd, 2026

Economic Reports

provided by: ForexFactory.com

All times are Central Time ( Chicago)

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on Apple, Spotify, Amazon

or wherever you listen to podcasts!