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Red River Valley | becuse as of todays close you need to be below 3.40 march puts to get them for .05 yet I can sell a $7.00 call for the same price. yes I have a marginable position but you have a loss at the start and have to hope for corn to go way down in order to see a profit. in my case either I make money or I get to sell my corn above $7.00 .
I should be so lucky and if corn goes to $7.00 as a producer I can sell Mutiple years worth of corn also if I allow the option to be exercised then I'm short at $7.00 and I can roll the position to future crop year, if I have sold al of this years production.
of course there is the most probable option that like the last 15 months that we stay range bound between $3.30 and $4.90 and both our postions expire worthless in which case I collect my .05 and you pay .05
in your case you need extreme cheap prices to collect and I need extreme high prices to lose but then again as a producer I have never been hurt by high prices for my crop.
please tell me where I'm wrong. | |
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march calls
