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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