Marketing 101 - Are options the right tool for you?
"If you are looking for a low risk way to protect yourself against prices moving either higher or lower, for example after you sell your cash crop, an option may be the right tool for you," says Janelle Guericke of Mitchell, South Dakota, a marketing educator who specializes in working with beginner to intermediate groups.
"There are never guarantees that something will make you money, but an option will let you test your marketing intuition with a minimal investment - and possibly a pretty good return!" she says.
With options, you are not required to be in the futures market, although it is important to understand how the futures market works as the two markets are related to each other, she adds.
In this article, which is the third in the Marketing 101 series for WomenInAgriculture.org, Janelle explains the connection between futures and options and offers advice on how to use options as a tool for better marketing.