Wheat call options

[Kstater85]

Because the final US yield is sure to not be zero.

[Shaggy98]

I understand that the final yield won't be 0, but won't X number of wheat yielding 0 correlate to the final yield?  Or are you saying that these acres will be abandoned and not used in the final result?

[Farmerjoe79]

10 dollar corn and 13 wheat. The big bull run is coming so hang on to your ankles if your short the market:).

[Shaggy98]

What is your predicted time table Farmerjoe?

[Farmerjoe79]

I will say them prices could be around by march. I think we are the only exporter left for the next 5 months and we have very little to export.

[Doug N]

If corn goes to $10 there will be plenty to export because it will not be getting used domestically. 

[jeremey.frost]

a call option is a good way to re-own and right now Implied volatility is rather cheap despite wheat's movement the past couple of days

the problem with wheat in general is the lack of demand.............and the fact that the story..........(dry story) is not new news..........it is part of the reason wheat is close to it's highs while beans are still 3.50 off of their high's

so if you buy a call option perhaps have a good idea what you are trying to make on the thing............unless we are going to really get demand the cost might not be worth the reward...............

typically guys want to see a 4-1 risk reward............if you think that wheat has that type of potential then it isn't a bad move..........but personally i would rather see a jump in demand before i got too bullish wheat..........potential is extremely high.........but right now it is just potential

[Hobbyfarmer]

Welcome back Jeremey Frost.
Always nice to have another market savy poster here.