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| Opinions and option strategies are like buttholes. Everyone has one, most stink. Take mine how you will, and know that I am saying this while simultaneously not following through with it. So worth what you're paying.
If I was buying a 4.65 July call for ~.20, I'd try selling the 5.25 Dec against it for even money. Still has the upside/cost offset effect, but the offset sells more time into the new crop at the same price. If price is truly going to run hard above 4.65, the NZ spread is going to close and you won't lose penny to penny. Additionally, if we go to 5.25 Dec, you take your N call profits, buy back that Z call, and sell some new crop corn for close to 5.25 which no one would be upset about today.
Now you have to look at the risk. If price rallies in July/August/September after the 4.65N call expires, you're losing a lot more upside. | |
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Are you sold more or less than previous years?