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Portage Des Sioux, MO | buy a put option. only thing your out is the cost (premium) of the option, but you will need to watch this option. Ideal route is buy the put and then sell cash when you think market is at it's high you can then ride down the options premium. Put options gain in value as the market goes lower. If you are not comfortable using a broker to buy these options, and you are going to grow a crop and deliver to Elevator A. Most elevators offer Min price contracts. This is an example of a min price contract. Options may not be the most effective or efficient risk management tool, but when you are buying them and you know exactly what your worst case scenario is they are a very low risk tool. | |
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Wheat 2008 protecting price?
