| humblefarmer - 1/28/2024 20:08
Keep buying? Have you ever heard the phrase "insurance poor"?
I am saying instead of buying the expensive Dec OTM ones, buy shorter dated ones against the nearby March or May contracts……if the market goes up…..you can make a sale at a higher level or use some of the money you saved to get a higher strike or higher floor
Typically if markets go down the spreads widen out…..so it might make more sense to buy better shorter term insurance (less deductible)……then longer dated more expensive insurance (bigger deductible)
It is just a consideration that the OP may want to look at……overall I prefer to sell options then buy them…..
|
Buying 4.50 puts for corn..
