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| there isn't as much risk in using CRC as some would have you to believe. In ECIL you will pay ~$15-20 extra for RA-HPO and it will take an extreme situation for you to make that money back if the price moves higher. Lower, that is another story(you will make it back fast if we exceed $1.50 to the downside), BUT the downside is protected w/ FORWARD SALES.
If no one has explained the way CRC compares to RA-HPO when the market moves more than $1.50 higher, then you should get a different agent that will explain it, or have your current agent explain it again. No reason to spend the extra $'s from my perspective.
P.S. I had the same opinion as everyone else(RA-HPO is better than CRC) UNTIL I did my homework! CRC STILL HAS THE UPPER HAND IF THE PREMIUM IS SUBSTANTIALLY LOWER! | |
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crc- forward contract
