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West Central IL | 07- buy a dec 3.50 put currently trading @.14, sell a 5.30 call for .15. Guarantees a price between 3.50 and 5.30. .50 down side with 1.30 upside protection for little cost, I think is a pretty good deal. There is a lot of time value in 08 options, I don't know if I would do anything just yet but if you wanted to, you could lock 3.50-4.50 with very little cost. The thing is, I don't know if 4.50 would be a good ceiling on that crop. The so called experts say that if we have a widespread drought, the sky is the limit. | |
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Any ideas on setting a floor with options
