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Central Illinois | I am buying November 7.50 puts. They trade off of Dec, but expire at the end of October, giving me the protection I need to put a floor on my insurance bushels. They traded at 34 cents, about 13 cents under December options, but give the protection I need from a big drop in the fall insurance price period (October). If, for some unknown reason they rally further during October, I still get that higher price for my insurance bushels. I am estimating a 65 bushel/ acre shortfall from my guarantee, and I want to put that $7.16 floor (7.50 put minus 34 cent premium) on those bushels. And the banker will finance them since we are now locking in a profit, compared to having the fall price drop to the mid $6 range, | |
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7.60 Dec. corn calls
