can I lock in FPC with put option?

[MBFarmer1]

Congrats, toughgoofit!!!! You have just done something considered a sin by most farmers. Admitted you didn't know something??!! Shocking!!! IF we were all so honest things would be better. At university I took courses on the futures market and could still likely explain how it works theoretically. But if you asked me to apply that information to my on farm in a hands on, practical basis like how to set up a futures account, who to call, what does it cost, how can I use it as a tool on my farm, the silence would be deafening. I do not have a hot clue. Nada. So if there is room in the classroom for one more I would be pleased to join !!

[carebear300]

Keep this up!!!!!!!!!!! There is something starting to sink into this thick head for a change. Have learnt more here on this subject this morning then I learnt the last thirty years. Thankyou again.

[Ron]

So I can buy a july put @ 4.20, wait untill FPC becomes available, ride the rally up untill I like the FPC, lock in a price, then sell my put for the intrinsic value. This will cover me if the CWB misses the ball and I cant lock in a decent fpc before the rally ends my put will have value untill June (end of options trading?), it will be worth the difference in price plus time value which will erode untill expirey? (I rememer just enough from college to be dangerous so please correct me before it costs me real money)

[Ron]

I had earlier asked my question to Melvill, I would post it now to anyone. How do I go about finding more out about this stuff? I've asked at my local elevators they know less than me. Any help?

[melvill]

toughgoofit, are you in Alberta? If you are, my two colleagues and I put on in-depth marketing courses all the time where we teach all about this futures stuff and puts and call and strategies for using them, etc.

For a little night time reading have a look at the Alta Ag. Marketing Manual at

http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sis8570

We're gradually getting it updated and posted to that new page.

Want more info send me an e-mail at

lee.melvill@gov.ab.ca

and I'll see what written material I can send you.

[melvill]

Thanks Melvill, no I'm from Sask, but I went to that website good stuff on there.