Posted 4/24/2018 17:30 (#6728523 - in reply to #6727307) Subject: RE: Buying and out of the money call on already contracted 18 crop
NW Indiana
So say you are 50% sold. If you buy calls and the market goes down you are not only loosing money on those calls but also the other 50% of production. Your insurance doesn't guarantee a full crop either so actually he is 100% correct. As someone producing a product the risk isn't higher prices even if you have sold some at a previous margin.
Buying and out of the money call on already contracted 18 crop
