Soybean marketing scenario for new crop 2021
Sell 1 November 2021 HTA @ 11.21
Buy 1 November 2021 11.40 call @ .72
Sell 1 November 2021 16.00 call @ .11
Net cost of call spread is .61, with potential upside of 4.01 (figured as the difference between 16.00-11.40 of 4.60, less the call spread cost of .61. So, 4.60 – .61 = 4.01.) Adding this to the 11.21 HTA puts a ceiling at 15.22, less basis.
The floor price is 10.60, figured as 11.21 less the call spread cost of .61.
Note that all of these are figured before basis is set. Basis @ Cargill Muscatine is currently -.10 for October 2021 delivery.
1/4/21, 4:22 p.m.
