MARKETS NEWS
Jerry Gulke DTN Columnist
Mon Nov 26, 2012 06:29 AM CST

Throughout late spring and summer market analysts were trying to protect a precipitous fall in prices of grains that could happen with a change of weather. A popular strategy was to buy put options, putting a floor under prices and letting the upside run. If prices continued higher, the move would be rolling up the puts to higher and higher strike prices, doing so with each 50-cent rally. I tracked that strategy for new-crop corn using December futures and options as the guide. I found the results interesting.

I began tracking the strategy in early May after it became obvious ...

Quick View
  • Dealing with Diplodia After the latest spate of wet, cool weather in parts of the Midwest, plant pathologists are urgin...
  • Year-Round Cow Kelly Smith believes fetal programming through good nutrition for dams yields better steers and h...
  • Russ' Vintage Iron DTN staff reporter Russ Quinn takes a look at farm life nearly a century ago.
  • Cash Will Be King Years of $6-and-up corn couldn't last forever. Some proactive grain farmers are bolstering their ...
  • CWA Rule Pressure The Pennsylvania Department of Environmental Protection has asked the federal EPA to withdraw the...
  • COOL Appeal Likely in 2015 Agriculture Secretary Tom Vilsack said the U.S. might not file an appeal of the country-of-origin...
  • Ask the Taxman by Andy Biebl Readers ask if they can offset futures losses against cattle income, roll hedges forward tax-free...
  • Ranch Hands Two families take different approaches to building income from trail rides, roundups and real-lif...
  • Ask the Vet Why isn't my flea and tick control for dogs working?
Related News Stories
Harvest Revenue Insurance Prices
DTN Closing Grain Comments
DTN's Quick Takes
DTN Midday Livestock Comments
DTN Midday Grain Comments
CME Earnings Rise 23%
DTN Before The Bell Grain Comments
USDA: 132,000 MT Soybeans Sold
DTN Early Word Opening Livestock
DTN Early Word Grains