Stock Market Warning to Cattle?

[grassfarmer]

Errol, what do you see as the advantages following your strategy versus using the price insurance program?

[Braveheart]

Just talked to broker. He agreed strategy was sound. His advice on currency was spot on your analysis. He said buying the in the money put would be easy but, selling the out of money put on the same session might be hard depending on strike price.

[errolanderson]

grassfarmer . . . advantage of working with a broker versus government programs is 'flexibility'. You control the shots, not how the program was designed.

You set your own targets and you can modify at any time.

[ALLFARMER]

I see they are ripping out the Grande Prairie cattle auction mart this week.

[TOM4CWB]

Braveheart

You can put an order in to sell the put spread as a package, buying and selling the puts at your spread price... Both done or no order fill. Market Makers will usually tell your broker what they will do the spread for... Put the order in... And wait. The spread usually gets filled in a couple of days.

Cheers

[cottonpicken]

The bad news is it is a straight up parabolic rise,that will someday correct.

The good news is that cattle are setting there new trading range finally like most commodities already have.

The trick is to time your selling into the rise.

They could easily pull a spring wheat and make a 600% rise.

[TOM4CWB]

Braveheart,

Selling the Put spread is going short.

Most people sell twice the number of out Of the money puts vs the in the money puts they buy to hedge their position.

If the market does continue up, double the number of the original out of the money puts sold... Can then be sold again to buy back the first ones sold.

And so on.

And iron stomach and good margin account is all you need.

Then you can ride the market up till it tops.

For those who are interested in risk management with need to be in the future s trading.

Cheers