Texas Hedge

[Oliver88]

Crusher- I would consider it speculating if I am trying to accomplish adding to a sale.
Considering doing one of the following sales.

1) Adding more new crop fixed contracts for wheat a call option to capture gains.
(Not sure which month would be best)

2) Clean out a grain bin and try to gain some upside movement in futures.

[crusher]

Oliver88,

Calls would make a good replacement strategy. You can justify, for example, if you were cleaning bins to cover cash flow needs but still wanted to participate in the market. If you can get a premium now it adds more support to the strategy. I'd be less convinced if you filled a basis contract and replaced with a call. I don't see the need of paying the premium if you wanted to stay long. If prices were at the high end of the trading range then maybe.

Tom,

Still remember a little from the KenAgra classes.

[TOM4CWB]

Crusher,

Seems like a lifetime ago!

Good lessons learned... experience is still the best teacher... margin calls a good reminder how humble we need to be!!!

Cheers~!!!

[blackpowder]

Ken Strickland isnt farming anymore either.