A grain trading expert is encouraging farmers to use options as a risk management tool.
Brian Wilson spent 25 years as a pit trader at the Chicago Board of Trade. He’s now using that experience to help farmers use options.
“And have them be knowledgeable on it so that they can then go to their broker and say, look, I now know that the skew has come up,” he says. “I know the put volatility has come up and I want to structure a position with your help that will best protect me.”
Wilson says revenue and crop insurance programs can only go so far.