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| Good day,
I've been looking at the 1x2 contract by ADM, has anyone used this and felt like it was a good option?
Basically, it sets a floor and ceiling. At the end of the pricing period, the settlement on that day is the deciding factor. For instance, the floor may be 4.55, ceiling 5.02. If price is 5.03 or above, the contract bushels double, and are priced at 5.02. If price is between the two points, the contract is priced at that level. If price is below 4.55, the contract bushels are priced at 4.55.
Looks like a decent option if you're bearish the market but want 50 cents of upside potential.... Bad thing is it ends pricing in a traditionally lower priced season.
Thoughts?
Thanks. | |
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ADM 1x2 contract--anyone done this?
