A put or call option can be purchased thru a licensed commodity broker. Infinitytrading.com has many tutorials as well as a good commodity menu. In simple example Today you could buy a December $4.00 put for about $.28/bu all paid upfront. These are ussually 5,000 bushell contracts. Your put will increase in value if the market falls to say $3.25. You then would sell your corn for the $3.25 at the local market. You then can sell your put option for hopefully $.75. Still grossing your $4.00 minus your cost of the option purchase. Sure it cost the 28 cents but it beat the 75 you would have lost with out protection. On the otherside Corn went to $4.50 your put would probably expire without value. You just sell your cash crop for the $4.50 and will lose most all value of the put option. Still you netted $4.22 on your corn. The other part to consider that the weather goes against you and don't have enough crop to cover a cash contract, in a option situation there is no delivery so you are not left holding the bag to cover a short crop. In essence you can lock in a floor on 100% of your crop today and still gain from any market up turns tommorrow. Calls are used in reverse. We use them primarily for commodities that we intend to purchase such as feed or feeder cattle. I'm not an expert or broker so take time to research and visit with a local broker. My first time I asked my banker for a reference of a commodity broker. After meeting with him he gave me some great education materials. We only use the options are price insurance not as a speculation.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - Sunday Drives - by Cowboy. Summer was finally upon us here in Northern Maine. We have two types of industry up here, one being "Forestry" (Wood Products) and the other "Farming" (Potatoes). There is no shortage of farm tractors and equipment around here! I have been restoring old Farm Tractors for the past 6 years, and have found it easier and less expensive to hit all the auctions and purchase whole tractors for parts needed. My wife who works at a local school, and only has weekends and summers off, while on t
... [Read Article]
Latest Ad:
1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
