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Folks say they want this forum to be marketing again, then lets do it. I have a question
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SoDak Farms
Posted 11/25/2018 17:06 (#7127070 - in reply to #7126983)
Subject: RE: Folks say they want this forum to be marketing again, then lets do it. I have a question


EC SoDak
I’m taking a short position. I sold Dec 19 futures contracts at an average of 4.05, will buy them back likely next year (typically aug-oct) and immediately sell the July 20 when the spread widens to where I like it. When I sell the physical, after basis improvements, I immediately buy back my July 20 contracts.

Basically I’m figuring the 4.05 Dec19 then adding let’s say a +.30 spread to July 20 and subtracting a -.35 basis in the summer of 2020. So, $4 cash in the end.

If you’re looking for some decent winter reading, I’m a proponent of Ed Usset’s (U of MN) marketing books.

Here is a decent enough article that explains the differences:

https://www.investopedia.com/ask/answers/difference-between-options-...



Edited by SoDak Farms 11/25/2018 17:18
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