Need help with hedging?

Does selling options have a role in commodity risk management? Many commodity risk managers would shy away from even using options in the more traditional risk sense - buying calls to protect against rising prices or buying puts to protect against falling prices. But a recent intriguing article ( https://iml.com.au/why-options-arent-as-risky-as-you-might-think/ ) from an equity fund manager in Australia, made an interesting argument about enhancing returns through intelligent

Would you drive your car by only looking in the rear-view mirror? Probably not, but that's how many companies approach risk management - only implementing hedging after  being hit by a major adverse price move. Reactive fixes in finance are far too frequent. Consider a few examples: Barings Bank - controls after the collapse Due to weak controls, Nick Leeson built up huge unauthorized derivatives positions which ultimately sank the 233-year-old institution. Reactive fix: Wid

“Fragility is the quality of things that are vulnerable to volatility.” - Nassim Nicholas Taleb John, our by now well-known Head of...

"Every dance is a kind of fever chart, a graph of the heart." - Martha Graham. John, the head of procurement for Fancy Gizmos, was just...

“The best way to predict the future is to create it.” - Abraham Lincoln It was that time of the year again at Fancy Gizmos – budgeting....

"The most difficult thing is the decision to act, the rest is merely tenacity." - Amelia Earhart. By now you should be well acquainted...