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Holland, Indiana (SW IN) | Jon on market talk options are rarely thought of as insurance --they are talked about being sold -or other schemes -scares me
IMO options for farmers should be thought of as insurance
You are thinking of insurance--probably thinking of a year like 2012 --we had some calls bought in 2012 helped for sleep at night
IMO odds are 1 in 8 you will need the insurance-- BUT insurance is not bought to be used just for protection
My above statements are a long way of saying got to make up your mind yourself
We own some November calls-- paid more per bushel than you are talking about for $11 strike price--probably will expire worthless
If things get weird market wise the calls we have bought will seem pretty cheap
we are planting a bunch of beans this year $10 will make us money--- which after selling the beans and buying the calls we will get $10 +
Hope this helps Dan
Edited by Dan Loehr 4/24/2018 09:12
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Buying and out of the money call on already contracted 18 crop
