| Donald - 5/25/2019 09:18
How do you suggest we do just that ?
Thanks
Hi Donald,
There is no one size fits all but for me, most likely the best route will be HTA's at my preferred delivery point. For sure you want to know the rules of rolling but most allow you to roll out one year. So you could sell your APH with a HTA 'Z' futures of crop year, and if you end up short physical, you would roll the remainder into the next crop year and deliver those then. I would expect a carry market to return as well, so HTA's would allow you capture the carry - if it's there- and can be done without any margin calls. Futures would be another option, but because of the margin requirements - they wouldn't be for everybody. Options will be too expensive for my liking without some fancy spread - which will open you up once again to margin calls. If the inversion - assuming it happens - doesn't get too big, some spreading could be done but again - margin is the problem with that as well.
Take care |
$7.00 Sue is on M to M
