January 7, 2025

If you are considering but not willing to sell on a HTA or cash for fall delivery this early, but feel you need some protection heading into the crop report on Friday, consider the following option strategies to protect and floor some new crop bushels.

The put options get you through several reports and risk points.

Jan - WASDE, final yield and Quarterly Grain Stocks

Feb - WASDE

Feb - Ag Outlook Forum planted acres

March - WASDE and Quarterly Grain Stocks

March - Prospective Planted Acres

April - WASDE

Corn:

Buy a sd May $4.50 put - 20 cents

Sell a Dec $5.00 call - 19 cents

Soybeans:

Buy a sd May $10.00 put - 30 cents

Sell a Nov $11.00 call - 30 cents

Selling the call option is marginable and caps upside to $5.00 and $11.00 in this example

^{The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Clear Focus Hedging believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.}