Our new Matrix Review blog was developed to show producers how Silveus Financial and our nCompassTM software helps producers visualize risk and scenario plan. We will show hypothetical examples based on real risk management strategies we have developed with our clients.
Standard Matrix: Note the fall in profitability from +107 to -13 if the price of CZ17 goes from $3.91 to $3.31.
The matrix + test: Note the improved profitability on the downside below $3.60.
The trade itself: Buying 40 CZ17 3.70 puts, Buying 40 CZ17 4.50 calls, Selling 40 CZ17 4.10 calls, net cost of 10 cts per bushel.