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NE SD | Ltfire
Last year the poet plant here was offering what you are describing. They are not real open on how they are getting this done but from what I under stood they were buying a at the money or close to at the money call and selling 2 put contracts to make this deal work. I did a LOT of them last yr at this time for .07 crop figuring I had all summer to get any weather rallies. Well as it turned out the real rally came after the dec. 07 calls expired and now I am taking all my corn in at about 3.50. This year I believe they are buying a at the money call and selling 2 out of the money calls. They are actually only taking the risk on 1 of the calls since they will have my corn if they get exersiced on 1 of them. I am scared after last yr to do this deal again but it still sounds good and I have done some. I just can't see us staying at 5.50 to 6.00 corn long term. | |
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I have a marketing question...
