Posted 9/9/2010 12:37 (#1352693 - in reply to #1352395) Subject: Re: buying calls as insurance
S.E. Nebr.
Hedge to arrive contracts. You locked in a price on the board and play the waiting game to see if the basis will narrow. I locked in wheat at 7.31 at the time basis was 1.35. I'm gambling that the basis by next July will narrow. So if by July the basis is .60 I get 7.31 minus .60 for cash price.
buying calls as insurance
