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Buying GRIP instead of puts
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sparrell
Posted 3/10/2008 23:05 (#331104 - in reply to #331037)
Subject: Re: Buying GRIP instead of puts



If I was going to spend 50-60 dollars/ acre on GRIP, I would not do any more cash forward sales, just as I would not do any more cash forward sales if I bought at the money puts at the CBOT. I am trying to set a floor with unlimited upside under the terms that are most economically benefical to me. At this point, I am way more concerned with price drops causing loss of revenue than yield declines causing the loss of revenue.

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