northern edge of north central Missouri | SoDak Farms - 6/28/2024 18:09
Offers to sell a hedge(short the market), I can pull at anytime if they don’t hit, buy back if I think we will have a major adjustment. Options have tanked too many farms. Options make marketers for farmers rich typically it seems….
Sorry but now I really want to know.
1. Is an offer to short (sell) futures a position. Does having an offer provide a floor?
2.“Buy back if I think we will have a major adjustment”
This assumes you are short and you will just buy back if you think we will have a major adjustment. This will require very good timing in order to profit and avoid margin calls. And you will not have a position on anymore. What woukd you do next to insure your 4.50 floor?
Let’s say you sell futures at 4.50 (close to current) and the market rallies to 5.00. You simply buy back your position. (Because you sense the trend change or whatever) What is your net at this point if you take no other action with options or price physical?
Do you have a floor price at this point with no options or cash sale?
This is a marketing forum and it is interesting to me to learn. Part of what I want to learn is who may know something useful and who just talks a good talk. A floor implies a guaranteed price with upside potential. Can you explain please? I would like to know more about your response to that cowgirl person who asked a very legit marketing question.
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