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How's a small guy trade?
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Farmer Ed
Posted 1/22/2008 23:13 (#290278 - in reply to #290083)
Subject: Re: How's a small guy trade?


dogs nest ontario
good suggestions beh, but selling the call could be an exiting adventure, in this volatile market. [Prolly the most volatile in History!]
My addendum, would be to sell a further oout call[$11], then also sell a lower strike price put against your long put. [I call this a wedge hedge]
It gives more upside potential, albiet limiting the downside protection.
My inherent problem with buying puts is that you buy protection from say $8.00 down to zero. When in all likelihood you only need protection down to $7.00.
If wheat makes it to $7, then you can buy a put spread to get protection down to $6 etc.

just a thot.
Ed oout
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