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Buxton ND | Hoff I talking about those fancy dancy marketing plans selling options, NOT me.
Selling calls, if the market moves against you will need to margin these.
This is what I'd like to do, IF corn does take another step lower. I'm going to look at BUYING ZCU16 4.00 calls for a .10-.12 There currently trading @ .185
I "call" these weather insurance calls or courage calls. Courage to pull the trigger on rallies knowing those calls are there to help cover or COVER your margins call. I did this in 2012 wild market. One should buy calls when the market is crashing and no one wants them. If the market does not rally the call expire worthless.
One could use calls re-owning your bushel prior sold bushel for some kind of a weather scare rally into summer.
Using U -Sept gives you more time for a weather rally
July options expire too early (later June) in the season for a 2012 style drought. | |
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The 2016 Dice
