Video: Understanding Options

[marketeye]

Steve Johnson, ISU Extension, offers up a great example of how to participate in the options markets. You actually don't get glossy-eyed about the subject the way he explains it.

Watch here on protecting your price floor.

Mike

[booked]

Ok marketeye and forum

Am I the only one that cannot play these clips that are put up?

I get this response after about 10 seconds "201 unable to load stream or clip file , connection failed"

I use firefox 3.6.18

Thanks............

[marketeye]

Booked,

It plays for me in Firefox. Anybody else?

Thanks,

Mike

[booked]

Ok I tried it with explorer and it will play there.......

But not firefox...........

[Jim Meade / Iowa City]

I think understanding the mechanics of options is pretty easy.  What is more difficult is understanding the circumstances when options are a good marketing strategy as opposed to doing nothing, selling futures, forward contracting the grain and so forth.  

We need to remember that there are people who make a living selling put options.  They don't do that by losing money consistently.  So, you do not have the potential for making as much as you do with other strategies.  That doesn't mean the put option isn't any good, just noting that we need to think about when and why to use it.