Northeast Nebraska and Candelaria Philippines | although I'm not a producer, I've been speculating a bit lately. Up 3x my investment in last 3 weeks
For a producer wanting to do something far out, i would consider selling call options. The premium is through the roof.
For instance, you can sell a $16 nov soybean call, and collect 46 cents per bushel.
If bean are below 16, you keep all 46 cents. You lose above 16.46....
If beans go to $20, you'll lose $3.54 per bu in your trading account, but you'll have the cash beans to sell.
If beans go to 12, you'll be getting the extra 46 cents, so you'll get 12.46
Edited by kggonzo 5/7/2021 00:21
|
Dang it’s getting bullish around here...
