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explain to me using put options, please
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Pofarmer
Posted 12/8/2009 13:25 (#955523 - in reply to #955367)
Subject: Re: explain to me using put options, please



O.K. Doh. I was thinking CALLS. What I want to do is put a floor in with forward sales but still have the potential for some gains on that grain. Of course, there's a price for this. For instance, a COK 450 call is running around $15'6. That would give you 5000 bu for less than a thousand bucks, and gives you a chance with any big price runups. To get into anything I'd be considering on soys, for S0K, you've got to get to $13.00 at $25'4. or, around $1300 per 5000 bu contract. Is it worth it? Beats me.
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