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Ne Nebraska | If board goes below the $9 short put your short and long positions would offset each other for every penny the market moves lower. Basically you would be sold $1.20 over current price as a long and short position will both be executed and offset each other with $1.20 profit. If price goes over the $11 sold call you will be sold at $11, just as being short a futures position. Price goes over $11 will have to margin position but when grain is sold will cover the difference as physical has higher value.
Edited by cornncows 1/28/2017 16:01
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