Posted 7/10/2012 14:33 (#2477627 - in reply to #2477291) Subject: Re: Options to protect crop ins.
central MN
If he buys the $6.90 put for 45 cents and sells the $8.80 call for 18 cents and the market goes down you will be 18 cents ahead of just buying the put. If the market goes up buy the $8.80 call back when it doubles for 36 cents by then the futures price should be $8 or more and sell the remaining value of the $6.90 put. Your total cost should be close to the same as buying just the put.