News > CFE News Folder > JULY 2021 FLEX FLOOR

JULY 2021 FLEX FLOOR

Jan 14, 2021

I would encourage everyone with old crop corn left in the bin to take a close look at this contract. 

Summary:  This is a long option strategy; therefore, you pay option cost to completely protect your downside risk AND having unlimited upside potential.  This contract is for corn to deliver in June or July of 2021 & increments of 5,000 bushel.

The reason I like this contract is because we have prices that are worth protecting, but at the same time there are still bullish factors in this market that could drive prices higher.

Details below. 

Please reach out to CFE with any questions!!

Thanks.
Austin Behrendsen 712-720-7431
Mike Rosenberg 712-330-8014
 
 
 
July 2021 Flex Floor
 
When this example below was created the July 2021 futures were trading 5.24 & the option cost was .34 cents.  That would give you a net floor of 4.90 July 2021 futures (net cash floor would be roughly 4.70). 

Check out three possible outcomes below:

FlexFloor.png

FlexFloor2.png

FlexFloor3.png

FlexFloor4.png


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