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| If I read that right Don these are 08 contracts (unless they are the 07 crop for 2008 delivery?)
Regardless, I personnaly agree with your theory. If a person was to "buy-back" calls would be the best way since total amount of risk is known. Probably better to buy calls if another sale was executed.
And yes, CZ8 corn did trade at 2.60. Beans were not that low I dont recall but if they are cash prices these could be bonafide 2008 hedges. Keep in mind, 2008 corn ws $2.60 at the end of 2005 and the first part of 2006. I will bet there is a fair amount of corn sold after comming off of sub $2.00 prices in 2005. Maybe not large %'s. My first hedge for 08 was a 3.20 put, futures looked pretty good at the time but so far the put has done it's job. | |
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Should a guy buy back some bad contracts?
