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Post by Dave-ECIA on Aug 22, 2012 13:54:02 GMT -5
One other thing. You mentioned dropping $1/bu on an option. Keep in mind, you could lose that $1, lowering your net cash price by the same amount.
It's one of the biggest things new options users overlook.
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Post by wheatfarmer on Aug 22, 2012 14:12:59 GMT -5
Yes, that part I have understood since day 1. This is not to be treated as sales of commodity but more of an insurance of price, hence the desire to get a little ways out of the money and keep the costs to minimum. I am looking to capture a big move up or down over a 3 to 4 month period, not worrying about small moves which are easier to obtain, but not very favorable to profit from.
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Post by Dave-ECIA on Aug 22, 2012 18:25:48 GMT -5
Ok.... Glad you have that straight. I run into many, many others who do not and I wanted to make sure you understood that.
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