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western iowa,by Denison | because 40.000 lbs only covers about 28 head-then commissions etc. plus and old trader told me you are running naked on those un hedge numbers as you really have not sold the board-anytime I see a close breakeven for a cost of $1 to $2 put I buy them if the cattle have not been sold on basis contract-so for about every 100 head I carry around 5 puts or $20-$40 a head-75% of the time I can buy a put for $20 a head and relax and lift them when I get a basis contract or cash sold
I'm willing to give some profit up to be able to go again next year-the markets now have not really gave anyone a chance and puts and calls are not workable like they were precovid.
I'm heavily in on corn on puts and calls as they have little cost to swing a big gun! | |
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Garvo
