|
NW Louisiana | Bon has a point, but options are a tool that fit some marketing regimes. He is right in that you will more times than not lose money.
We use a lot of forward contracting when we can lock in reasonable profits at expected production. At the same time we will buy out of the money calls for a small premium to cover any major moves to the good in the market. Our floor is set and we have upside potential.
You have no margin risk as well. It's not going to make you rich, but can help you have some peace of mind when making a sale. We currently have no storage so this is the tool we can use to prolong our marketing year. | |
|
Educate me on call options
