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western iowa,by Denison | I will respectfully disagree-the options give you a chance to hold your money together in case something happens
I don't know how big your pockets are but when you have lots of money on the line-say a young guy with a 100 head of fat cattle or feeders-he can buy two puts for $1500 on those feeders-if the market goes south he still has a chance to be whole
protecting basicly his investment -running naked as you suggest is not a good stragey
Why for the life of me mn feeder are you so worried about the put seller making money-and would you not say the same about the call seller then-If I bought a call and the market went up $10 and my call went up $8 did that make the seller of the call wrong-it just simply reflexs where the market went
There's nothing wrong with buying a outa money put or call-its protection just in case-and its realitively cheap-
buying puts you only offload $11 of profit that covers $1400 or now $1389
If your idea to buy puts is to make money -you have no idea what puts are suppose to do as a feeder
they are a cost-that's all-you hope they never do make a profit-you have the actual cattle to do that
it's cheap insurance-treat it as such-if that options seller makes money so be it-he is takin the risk that I will let him have | |
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puts and calls-feeder cattle
