Posted 9/9/2010 11:25 (#1352618 - in reply to #1352400) Subject: Re: buying calls as insurance
Texas Panhandle
No our elevators are loaded with wheat I guess... Our basis is -1.53 for July 2011 last I checked. The way I understand if I use a hedge instead of a 'full contract' and the price goes up, then I can take the higher price minus the .30 which is sorta like a penalty. They are also charging .05 per bushel to hedge in 2011.
buying calls as insurance
