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| Hey, a few weeks ago in one of the threads you had made the comment that on 1,000 hd of feeder cattle you would hedge them with 50 put contracts. I was going to ask the following question at the time but was swamped with some other stuff and forgot. I'm curious why you arrive at that much coverage,? I usually figure about half that much for my operation of 1,000 hd.
50x40,000/1,000 hd would be 2,000 lbs of coverage per hd. Not disagreeing with you, just trying to learn/understand what your thought process is there. this year that would have been a great move if hedged early on. thanks | |
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Garvo
