tom4cwb, I don't disagree with you that an out-of-the-money put will help protect against some of the possible slide downward of U.S. wheat futures. They work pretty well if held for a short time before the time value erodes. Put options only protect against part of the downward slide. Some of my farmer-clients don't like them for that reason.
I also am sympathetic with the potential stress of sell calls to cover part of the cost of the puts. Sometimes I think brokers encourage people to buy the call at a strike price that is too close to the strike price of the put they're buying.
I also am sympathetic with the potential stress of sell calls to cover part of the cost of the puts. Sometimes I think brokers encourage people to buy the call at a strike price that is too close to the strike price of the put they're buying.
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