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so-even though I bought a put and screwed up-now what?
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Gary, Eastern Iowa
Posted 7/6/2014 08:12 (#3953445 - in reply to #3953279)
Subject: RE: so-even though I bought a put and screwed up-now what?


Gary Edwards Anamosa, Iowa

+1 on MU1979's comments

From down below:

 If beans go to $10, you can expect your put to be worth $.90, so with your sale price of $10 plus puts of $.90 minus your $.19, you have a total sale price of $10.71.  I guess at this point I would watch the market and if it gets down close to that $10 price before fall I would roll the puts down to where I still have $.19 invested and pocket the profits at that time and still have some protection in case they go down more.  The big money will be if the price goes below $10 so you will have to watch the market and if you think the market could go to say $9.00 leave your $11.00 puts in place and roll down when you think they have hit bottom.  (keep in mind you will most likely miss the bottom)


In an up market puts are a purchase and forget, but in a down market you have to watch closely to capitalize on any profits. As far as selling your beans, if selling post harvest, I always like to have them priced before July 1.

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