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I almost got burned selling corn puts per a bullish recommendation from Hightower. Fundamentally it may be the right direction due to the hot and dry weather affecting pollination and potentially lowering yields; but the ups and downs are a bit too pronounced for my taste. Managed to get out unscathed; but I'll be more careful this time of year with grains.
What about meats? What are your thoughts on selling puts on hogs?
A couple ?'s
LCV p100+p106/c136
Did you sell a p100 and a p106 for each c136?
I am not experienced enough understand spreads very well. Examples RB-HO is the trade based on some seasonality in the markets? Then the LHG-LHZ is that based on the difference in price between the months?
Don't mean to ask too many ?'s as I have been reading a couple of the books you recommended. Just slow at reading and maybe haven't gotten that far.
In the process of legging into the LCV strangle some time ago the LCV P100 got too cheap compared to the LCV C136. Thus, I added some LCV P106. Recently I took profit of more than 90 % on the LCV C136. Currently I am thinking about building a strangle again by buying back some of the puts and selling some calls.
My motivation to buy the RB-HO spreads is the seasonal chart. I will sell them soon as the seasonal window is closing.
Correct, the LHG-LHZ is based on the difference in price between the months. Meat prices for different months trade more or less independent from each other, whereas these prices for many other commodities are closely related to each other. Reason is the difficulty to store meat.
Please feel free to ask as many questions as you have. And ask again in case my answer is not clear.