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| Would option buying or selling be considered a spec position
Why take the risk??
Lower capital exposure perhaps, but still a speculative risk with your available farm capital
9 of 10 options end up as losers - I think that is the accepted %
Somebody can correct me if I am wrong
Why spend money on a loser spec position
I used to think options was the way to put a floor under my crop price
Instead, all it did was subtract the option cost from my sale price
9 of 10 times-at least that seemed to be my experience
If I wanted to spec, I and most option writers know the profit is in selling options
So who is your typical loser??? specs and farmers-many farmers who follow industry marketing newsletters
Don't need a newsletter if you can market as well as you can grow the crop
Time spent on marketing is very rewarding, financially
100-150/acre/yr is entirely possible
How much would you spend to increase your yield/acre by 5 bu. next yr???
And how much does that add to the total bottom line, after expenses???
Follow the money - somebody is selling in the bottom 1/3 of the market, | |
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selling srw now???
