|
| Cowboy, If you buy revenue coverage, that does not mean the need to market is over. It is simply a tool that now allows you to safely market. One simple rule of thumb I try to stick to, is sell the cash first. If I sell 25% of my guaranteed bu, that means I still have 75% of my guaranteed bu unpriced. Now, if the price goes up a dollar, I still made 75 cents, or 75% of the move.
If the price goes down, I will feel sick, but at least have 25% sold. Next, one simple approach might be to buy puts (provides a floor) on 25% of my bu. Now, I have 50% of my bu. protected, but still have 75% upside opportunity. And the total cost is the cost of puts on 25% of my bu., spread across (averaged) my total bu.
Just some thoughts. Rob Heyen
Edited by robheyen 2/16/2007 10:27
| |
|
Beginner marketing help????
