And the emitting institutions ? Are making money - the faster the market the more.
And the hedge fonds - drive the market by having to buy after selling short - creating volatility thus driving the value of their options. (options are climbing on increased Alpha)
And if they are going long ? It’s getting to expensive to buy calls for the customers in real need for the underlying bean. So putting them on stock gets a cheaper alternative. Buying and selling increases with the hedge fonds in control of the cycles.
Volatility is expensive for those who have to buy a good.
Options are traded with high leverage and with borrowed money and with increasing speed - maybe it’s all meant to be symmetric but you can sell one side of the ballance and hold the other one and cover your debts from yesterday with the turn over of today because the derivative market is convex.
I have not understood all the details - but it all looks like a giant chain mail. (they are better the more complicated they are)
I'm not familiar with this phrase. Please explain further.