| Markwright - 9/1/2010 11:19
a floor.
Generally those puts will expire worthless and you'll sell net cash for more dough.
The guys at the CME are pretty sharp and it seems like the options are priced about where they really won't make you any money unless something crazy happens. Then it becomes a matter of insurance (a floor) and whether or not it's expensive. It seems like options as insurance in grains are usually pretty expensive insurance compared to just getting higher priced crop insurance. Is it worth the peace of mind, does it make the banker more comfortable - maybe for those purposes it works, but I'm less and less impressed with options unless we are in crazy times (ie. I should have figured out a way to buy puts, put/call, something when corn was $8 and do it for as many years as the high price was available, but those were 'crazy' times)
Thanks,
Pat
Edited by Pat H 9/1/2010 14:32
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Where do you feel Fat cattle prices are headed?
