Texas/New Mexico Stateline | I've said it before, but the reason options are relatively inexpensive right now is because the market is a very steady bull market. Whenever the top is found, and the bear comes out of its cave put options for a "floor" will suddenly be very expensive again.
Looking at it from an insurance perspective, insuring against priced dropping below say $180 for feeders is a pretty safe bet right now. Therefore it doesn't cost much to transfer that risk to somebody else.
Now if the price falls from $205 to $185 in a couple week's time put options will get very expensive quick. |
puts and calls-feeder cattle
