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NC | My market protection was being in the makret constantly. What I lost on one calf means I made that much more on another.UNLESS the market went so bad that I could not keep buying(banker pulled the plug). Which happened(good ol dairy buyout)
Now I am buying two or three times a year- so I cannot count on the constant balancing act to work any more.
Futures worked good for a few years- I could lock in a great profit and sleep happy(I knew I could keep up with margin calls)
Now I am using puts knowing that if all goes well I just gave some money away-- it was a good choice as I could not lock in a good profit at the time and I may not have been able to keep up with the constant margin calls if this thing keeps going up.
I wonder- if my pockets were so deep that I could manage market risk on my own (as much as cattle cost now) why would I still be in the makret that hard???
A few calves and lots of beach time sounds better. | |
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puts and calls-feeder cattle
