About the Editor:
Kirk Donsbach, the cattleman behind The Cattleman’s Advisory, was born and raised in production agriculture in Central Montana. He graduated from Rocky Mountain College of Montana in 1998 and started his career in the power industry, concluding at Duke Energy. After 5 years, he desired to return to his family’s operation in Montana to raise his family in a rural setting. Upon returning he developed and implemented the strategy that he has used over the last 14 years on his own production. This is the strategy he will share with his readers and clients through the pages of The Cattleman’s Advisory.
The Cattleman’s Advisory is a newsletter designed for producers of cattle by a producer of cattle. All subscribers can expect a weekly update of the Fundamental and Technical conditions of the cattle markets, setting the table for the week ahead. If you like what you read and want to become a client, you would then get additional emails/alerts throughout the week where Kirk comments on and/or adjusts the positions in the portfolio. Once a client has initiated a hedge position, our system relies on the mathematical inner workings of options to determine when/if it makes sense to reduce the risk to hedge profits or capture additional value in the cattle. When he feels the time is right to adjust the positions in the hedge account or make physical sales, you will hear about it through the insider email service or your personal advisor, if you would choose to have one. Most importantly, readers need to know this is an active long option strategy and there are no margin calls when purchasing options*. Our goal is to manage risk, both to potential hedge profits and cash sales, and not fix a sales price open to daily margin requirement.
*Exercising an option results in receiving the underlying contract, which would then be subject to potential margin calls.