Johnson says the spread can be a good strategy. “But recognize the potential margin call that comes with selling options,” he says. “Keeping the call option strike price high enough is key, even though the higher the call option strike price, the lower the premium you receive.”

Moss points out that “in the classic ‘collar’ (spread) strategy, where multiple ‘legs’ are involved, it's risky to partially execute or exit the intended position. “Likewise, always execute the entire position or none at all.”

It seems strange to fear setting a margin position at $8.50, says Henry. “It's astronomical to consider that. I'm setting up a different line of credit to handle the more aggressive marketing.”

He considers marketing as part of preparing his cash flow plan.

“We realize that the minute the ink dries on a cash flow plan, it's wrong,” says Henry. “Too many factors can change. The same can happen with a marketing plan. You just have to have confidence to develop a plan, implement the plan, then live with those decisions.”

MANAGE CROP REVENUE. That's a term often used by Johnson, who says the use of options and futures should coincide with the use of crop-insurance revenue products such as CRC or RA-HP. “Crop revenue products can be used in combination with preharvest sales that commit bushels to delivery,” he says.

“This is especially true when cash sales can be made when the futures sales price is higher than the government insurance spring base price ($5.40/bu. for corn and $13.36/bu. for soybeans in 2008). These amounts do represent the highest spring base prices ever recorded, thus the interest in preharvest marketing strategies.”

Johnson says a balanced portfolio of marketing and risk-management tools is critical in an age of extreme futures price volatility.

Henry uses his variation of the bartering system in matching sales with purchases. “I'm tending to make more cash sales as I buy my inputs,” says Henry. “I needed a load of diesel in June so I sold some old-crop corn for $6.02/bu.

“It's almost like bartering. It can feel like you're playing with Monopoly money. You make sales to buy inputs to hedge your bet,” he says.