Casey IL. ( I -70 ) then south on rt.49 | I miss with grain and I do not like options. Here is why option only works in a big fast move and usually not penny for penny. The farther out you go more time you are buying and time depletes price the closer you get to settlement. My experience is the house makes the money. You could look at selling a call and pocket the money ( by selling you become the house ). Then if the price goes down you keep the money if price goes up and uses the money they paid you then get out at least your not playing the hole game on your dime. By selling a call you have this time thing on your side and that usually makes it work for you. This is a margen account so be very carefull. I thought that the way peolpe made it sound that you was locking in a price ahead of time at buying the calves. Like selling corn ahead of time( on contract ). Maybe sence last week this is not a oppertunity time so then sell a call tell you get the price locked in. As you no better then I ( bull makes a little and the bear makes a little and the hog gets ate ) another words to make some is better than loseing alot. |
back to basics-feeding cattle -protecting your bottom line
