What Is Commodity Options | agriculture

Commodity options are options based on commodity. Commodity option is a right but not an obligation to trade a commodity at a specific price. Commodity options are used by agricultural producers, commodity purchaser, investor, and speculator. Each of them has their own goal for using commodity option. Agricultural producers and commodity purchaser buy option for hedging. Investor and speculator use this option to make profit.Agricultural producers or farmer uses commodity options to reduce their risk of loss because of commodity price change. A farmer who planted wheat buy options so they can sell their wheat at a specific price. At the time he planted the wheat it was $300 per bushel and he hope that the price stays at $300 per bushel in order to make profit. If for some reason the price drops to $250 per bushel the farmer won’t be making any profit. To reduce his risk the he bought put option so in the future he can sell at $300 per bushel.You now know that you can buy a right to sell commodities at a certain price. This right is called put option. If there is a right to sell, then there is a right to buy. The right to buy is called call option. Commodity purchaser who wants to protect their self from the wheat price increase will buy call option. There are many companies which buy wheat. One of them is flour producer. Flour is made from wheat, so to produce flour they need to buy wheat. If flour producers want to keep buying wheat at $300 per bushel, they will buy call option. If wheat rises to $320 they will need to spend more money to buy wheat and this will reduce their profit.Commodity option is similar to stock options. It also has premiums, strike price and expiration date. The concept is similar with stock options. Strike price is the price at which the underlying commodity can be bought or sold. Premium is the price of the right. Expiration date is the last date which the option is still valid.After the option passes the expiration date and were not executed, it means that it expire worthlessly. Here’s an example. The farmer bought a put option at strike price $300 for $50. $50 is the premium. When the option expired the wheat price is at $305. So the farmer does not execute his right because he can sell it at higher price than strike price. The farmer will gain by selling his wheat at $305 but loss his $50 money from the options premium.

Affordable SEO Service Will Help Business Owners | SEO

If you are looking for high quality SEO service for your business, then you may want to read this article. In this article you will find out what kind of SEO service providers will provide. Why amateur SEO service is still good for business and some appropriate strategies for business owner who choose SEO service provider. After reading this article, you will be able to get a clear understanding on finding good SEO service partner who is suitable for your need.First, SEO service can be divided into two parts: on page and off page. On page SEO means your website will be optimized to be findable and indexed by search engine, such as adding appropriate title and meta description. Off page SEO means to have some links from other high reputation website pointing back to your website. For example, a link from CNN or NBC is much powerful then having a link from a newly created website. Some SEO companies will provide 3 ways links. This is done by having 3 websites in place, and one website link to another one. It forms a triangle linking wheel so that all 3 websites have a one-way link to each other.When Comes to SEO service, some company is quite new to this market and therefore they may not have enough experience. However, they may still be able to provide good service to you. For example, you can have those service providers write some content for you so that you can post it as a blog post or article directories in order to get back links. Or let them do some web publishing that, if they do good, their skills can be sharpen and since they have completed some jobs for you, you can treat them as a long term partners in SEO service.Finally, here are two strategies that you can take to find a good SEO service provider. First you need to clearly understand what you are really looking for when you are searching for those services. You do SEO because you want your website to be findable by searching engine and have people find you and do business with you. Moreover, some of the service company will provide full Internet Marketing solutions for you. Therefore, instead of just doing SEO, try to ask what other service they can provide and see how their service enhance your competition level in the market.Now that you understand how to find a good SEO partner and what they can do for you. Don’t forget that SEO services are mainly about two things: on page SEO and off page SEO. On page SEO means to optimize your web page so that search engine can easily find you, while off page SEO means having a lot of different website linking to you, without you link to them. And even amateur service provider is still good not only because they may become long-term partners, but also they can provide some fundamental SEO services, like writing content and web publishing, for you. And you also need to know what you are really looking for and find out what the service provide can provide other then SEO service, so that you can leverage their effort to help your own business.