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Northwest Iowa | Too far out in time. You may have the right idea but coverage will be less than desired. If the market falls, the first part of the move will just be to pay back the original cost of the option. Garvo may be right to use the live cattle options rather than the feeders, but likely you will need to use a march contract for now and roll it later. When buying options, time is your enemy. Each successive day is a little time value eroded. As it gets closer to expiration that moves even faster. Livestock markets tend to wash out and then recover sharply as well. If feeders act as normal, there should be better opportunities for selling next fall's calves at a later date. | |
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Oct feeder cattle puts
