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| I don't believe it is texas hedgeing. I did this exact strategy last year using courage calls so I would feel comfortable selling my ins guarantee bushels and .which also equals the amount of oorn that I don't have storage for. Sometime in May I bot $4.50 sept corn options for 10 cents then corn futures dropped down to around $3.60 sept so the I bot the same amount $3.90 sept calls. for 8 cents. As you remember corn rallied up to around $4.50 dec futures. I started selling cash corn when the sept futures was at $3.99. Sold some more at around $4.40 sept. Rolled my 3.90 calls up to $4.50 for a 20 cent profit . With the amount of calls I had bot I could have sold more cash corn actually over my ins guarantee, but the market dropped quicker than I thought it would. Timing can be the biggest downfall of this strategy I bot the first calls to early also if you are waiting for a rally which I did to sell some cash corn you could be out the price of the calls and still not have any cash sold. | |
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Starting to Market 2016
