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Red River Valley | not for me -- but more so than the money is the volatility
volatility = Risk premium
At this point there is NO risk to the Wheat crop at some point that should change if it does these price levels should be breached and volatility will also increase about the only thing you are collecting on at this point is time value and rare is the case that One should be willing to accept only time value in options selling.
the only caveat I would say in that strategy is if your storing the wheat and would gladly sell it for $5.26 then maybe it is worth it the option would expire around mid April so your getting .26 to store your wheat tell then. | |
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chi wheat calls
