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Buxton ND | YES HTA's were a dirty word in 1995/96. Some farmers went bankrupt and some commercial elevators went bankrupt.
It was a whole cluster mess.
Commercial X started pushing them.
Commercial Y had to start offering them to keep up with X
Then Commercial Z was forced to offer them because he was simply losing too much grain origination to X and Y
The MASSIVE troubles came from making sale 2-3 years out at low prices when corn shot up to over $5.00
Present day, THE SAME THING IS HAPPENING AND HAS BEEN HAPPENED SINCE LAST FALL.
I call these the fancy dancy marketing programs.
They have working very well the last 3 years.
Their selling options in a back months, as far out as July 2017 back months on contracts that YOU SIGN.
As with 1995/06 I do not feel producers understand just what they are signing.
Given and UN-foreseen rally for what reason I feel it is VERY UNWISE and RISKY selling very cheap call options.
If the market rally SOMEONE will pay fro those margin calls with selling options.
Selling cheap options IMO is very risky at low prices. | |
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I'm about as marketing basic as you get...
