Years ago, I was talking with a research guy who called himself the director of story telling about harnessing grain options for financial stability. He always said that he knew if someone was on the right side of the market or the wrong side of the market. How? Because if they were on the right side, they never cared why the market was doing what it was doing. Why? They just kept on collecting the money! (until the market changed!) But, if the wanted to know why the market was doing what it was doing, he knew that they wanted to know why they were losing money. The big question was if he told them why, would it get them their money back? Point being, for decades, it is simply normal to try to get on the right side of the market. Unfortunately, that is easier said than done. How can we emotionally deal with the financial impact of markets heading in the wrong direction? To gather as much information to quantify your present position, shock out your position to determine potential impact to further erosion of prices, and utilize all instruments to build a risk profile of your potential revenue stream.
A word about options: How often have I heard that options are too expensive or I was told to buy something and it expired worthless? Frankly, for every put option that I buy for clients, I hope you lose money. Why? That means that the market is heading higher and that is good for you. That is very simplistic, however. Options are a very dynamic financial instrument that when modeled appropriately, become a dynamic component of managing the risk reward profile of your revenue stream. This component and the corresponding financial modeling is in the Heartland Revenue Management model. Let us model your risk assessment at no charge. Fill out a questionnaire and see what harnessing grain options for financial stability means for you.
Thanks for reading.