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McLeod County, MN | I am thinking of selling a May 14 put for $4.65.
Gets me roughly 14.3 cents.
Take the money from the put and finance (2) 570 or 580 Sept calls. (6.7 cents and 7.7 cents).
My thinking is that market will remain fairly well supported until the put expires on April 25th. Then I get to play with some house money in case drought conditions intensify or planting conditions suck because of wet weather/snow or the rivers didnt thaw and nobody could get fertilizer or grain shipped, flooding, etc.
I would be sure to put a floor in just in case.
I did something similar last year closer to planting, and was up probably near 3 times the investment and never cashed in. The options pretty much expired worthless, but it didnt cost me anything to play and I learned a lot as it was my first trade.
I am not really bullish or bearish right now, just holding steady. My biggest fear would be something more develops in Ukraine or soys tank for some reason, but I am optimistic. | |
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