OTC Exotic Structured Products
Straits Financial LLC is proud to offer clients access to our 24/7 over-the-counter (OTC) desk through our Structured Products Division. These OTC products are designed as a tailored risk management solution for commodity based consumers and producers. This risk management tool complements our existing product offering, allowing end users and producers the ability to customize their hedges through a tailored product offering.
OTC Exotic Structured products are agreed upon contracts between two counterparties that allow full customization and creativity to meet your risk mitigation needs. Exchange-traded options have fixed strikes, expirations, and characteristics that create many layers of limitations. This complimentary tailored risk mitigation approach allows for a fully flexible hedging tool used to enhance profit margins for all risk profiles. Our team works directly with you to identify your unique risks and needs and then develops a tailored strategy around those needs, thus limiting your exposure to price risk.
These products can vary from swaps that function like classic futures and options, to structured products which use multiple products or contracts to achieve specific targets.
Benefits of OTC Exotic Derivatives:
● Customized Risk Management
● Immediate In The Money Accumulation
● Liquidity
● Profit Margin Enhancement
● Transparency
● Flexibility
OTC products available include, but are not limited to:
Agriculture
Corn
Soybeans
Wheat
Oats
Rice
Softs
Coffee
Sugar
Cotton
Cocoa
Orange Juice
Metals
Gold
Silver
Platinum
Copper
Iron Ore
Livestock
Live Cattle
Feeder Cattle
Lean Hogs
Poultry
Dairy
Energy
Crude Oil
Heating Oil
Gasoline
Natural Gas
Coal
We have a full range of product offerings for all risk profiles
Types of OTC Exotic Derivatives:
Accumulator Structures
Barrier Structures with in the money accumulation
Range Structures
In the money accumulating swaps
Collar Structures
At the money risk elimination with additional profit participation
Old/New Crop Structures
Utilizing new crop leverage to generate cash from old crop
Short Dated Options
Early custom expiration
Vanilla Options
Exchange-traded look a-likes with custom strikes
Strips
Daily, weekly, and monthly frequency
Swaps
Futures look-a-likes
Digital Options
Cash payment at expiration or one touch
Barrier Options
Reduce hedging costs by adding knock-out characteristics to a structure
Work with our OTC team to establish a new solution for your risk management needs.
Corey Folske
Senior Vice President, OTC Exotic Structured Products
Corey Folske is a highly skilled exotic OTC Market Maker and OTC Derivatives Trader with more than 18 years of experience. Before joining Straits Financial, Mr. Folske was the head OTC trader and market maker for a major brokerage firm and managed risk for one of the largest domestic poultry producers. Mr. Folske has a successful track record in risk management with commodity based exchange traded and exotic OTC derivatives, investment management, as well as training teams of market maker and sales team trainings to successfully grow deal flow while enhancing our clients profit margins. Mr. Folske has an extensive history of exceeding business performance and profitability targets while growing departments and meeting quarterly goals. He has proven experience for building and maintaining strong relationships with senior-level partners and cross-departmental team leaders utilizing existing relationships. His deep expertise in the agribusiness and poultry sector, trading a wide variety of markets including sugar, coffee, cocoa, soybeans, oil, meal, corn, wheat, livestock and energies attributes to his past success.