Posted 12/19/2006 06:49 (#75708 - in reply to #75130) Subject: RE: Pricing 08 crops
One strategy you might consider: Buy a $3.40 put and sell a $2.60 put and sell a $4.00 call. This gives you 60 cents upside and provides 80 cents downside protection with virtually no money out of pocket. However, just like shorting the futures, if we get dry in June, be prepared for frequent margin calls.
Pricing 08 crops
