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SW MN and Gold Canyon AZ | In these volitile market times use puts. Before you say they are to expensive lets look at the options you have with puts. Locks in a futures floor, leaves topside open ,leaves basis open, leaves carry open, leaves location to sell corn open. On the opposite side a cash sale , sets the price, no upside potential ,sets the basis, no addtional carry can be earned, and the option to sell at a different location is gone. Now are puts REALLY to expensive in these volitile times??
My puts expired worthless last year, good thing I lost that .25 because if I would have cash contracted that corn at the same time I would be looking at a $1.25 loss.
Buy puts on your insurance guarentee bu. and hope they expire worthless!! | |
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Contracted Corn Yesterday. Somebody kick my butt!
