Options Strategy

Futures; ChicagoVol. 37 Nbr. 10, September 2008

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Summary


With growing demand and carryout supplies getting smaller, there is little room for a disappointing corn crop this year. Since corn became both a food and energy product about five years ago, its value has risen, providing a floor much higher than in years past. Corn has a floor price of about $4.50; anything lower will spur demand at a very rapid pace. The condor call spread strategy has a known risk and reward potential and gives you the time to be right or exit whenever your thoughts change. You also can morph into another strategy based upon new fundamentals. This strategy allows clear thinking under extreme conditions.

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Extract


Options Strategy

Question: You have a clear idea of the upcoming range in a market, but not the direction. What do you do?

Answer: An intrinsic condor call spread

With growing demand and carryout supplies getting...

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