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| HowardTyllas.com |
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| HOWARD TYLLAS ( Currently a member of The Chicago Board of Trade (CBOT) and registered with the Commodity Futures Trading Commission (CFTC) as a floor broker and as a Commodity Trading Advisor (CTA) ) |
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| FuturesFlight.com |
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Visit Our Brokerage Firm
Futures Flight
Visit The President Website
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Farmer services
No matter what you produce, no matter where you grow it, I offer solutions to meet the needs of producers and commercials around the world.
- Grain and livestock marketing
- Crop protection and inputs
- High per acre returns
- Hedge with upside potential left open
- Risk free price hedge with a known affordable maximum margin requirement
Hedging Research and Analysis
Trading is what I know. My daily numbers has been the foundation of my life’s work, my options knowledge has me considered an options expert, and allows me to provide known risk, and be a valuable market strategist.
At Futures Flight my brokerage firm which is an Introducing Broker for MF Global,
We Offer a full service commodity brokerage service.
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Hedging Services for Farmers
Full Cycle Marketing Management
Farmers prefer to spend their time and energy on production, rather than on marketing their investments. There view is mostly fundamental, but not with a realistic approach that can be used in pricing or marketing their grain in the volatile world of commodities, let alone the knowledge of the risks associated with futures hedge programs, even the ones at the elevators. This is where my 33+ years trading soybeans and corn currently a member of the Chicago Board Of Trade (CBOT) comes in. Let my 20+ years trading options (since their inception in Chicago) in agricultural and commodity futures trading experience work to help you market your products.
It is my opinion that I can provide the best strategy for your needs with my option knowledge and philosophy of using the markets to take the gamble away from your farm, instead of the risk (or gamble) involved without a sound marketing trade approach. Selling futures or calls is not the way to market your grain or livestock in today's world.
It is my opinion that my hedging philosophy, and consulting, is second to none. For independent farmers my goal is to help increase your net worth with relative certainty year after year. I market your products with insight and discipline from my decades of trading for myself, now assisting my clients, and plan a strategy based on THEIR thoughts, ideas, and needs; precision derived through superior trade execution services that I believe are second to none that even the biggest exporter on the CBOT trade floor can provide; and at the same time make it a learning experience for you.
Marketing & Hedging Consulting
As a registered commodity trading advisor (CTA) I can provide consulting services for futures and options markets, and I can advise you based upon your personal investment needs and goals in hedging your products. I will discuss every action with you before it is taken, and make sure you have an understanding of the strategy and get your approval.. not only your commodity futures investment goals, but you personally.
My goal is to help educate you on how a disciplined approach to hedging can enhance your returns; manage your price risk with certainty; produce better profits through analysis of your personal commodity futures investment needs; and allow you to focus on what you excel at: farming.
I want to help you market your products with insight, personalized analysis and discipline. I have an in-depth understanding of the farming business as well as the commodity futures markets.
Hedging Execution
Almost always will you be on the telephone on a 3 way call when we place the orders with the brokers on the floor. I not only have floor excess, I have friends who are fellow members that go into the pit of our needs to execute the time stamped order we just placed, and cries out the words "what's here in the November $10/$11 call spread?" and you can actually here the bid and offers from the locals in the pit. We can then listen to our bid or offer being made, if filled not only will you be confirmed instantly, but you will have heard the trade being made already! If not filled, we can cancel and replace our bid or offer instantly or just let it work, you keep the order number, and I will call you when filled. You can always cancel or change the price at any time. This is just one big reason that I think that my service is the best, and the rest could only hope to provide this level of service, let alone my knowledge and experience.
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| A BETTER WAY TO HEDGE FOR FARMERS |
Want to know what I think for tomorrow?
Free 1 day Trial For Howard Tyllas Daily Numbers & Trade Ideas.
| Attention all Producers
Are you still a victim of outdated hedging programs?
Are you paying $20,000 for advice on hedging that is nothing more than another person's view about where the market is going?
Find out how to take the gamble out of your marketing, and find out how to implement YOUR thoughts and ideas with a realistic strategy.
| Sign Up for the Free Farmer Hedging Program Webinar By Howard Tyllas
CLICK HERE
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Do you pay $10,000 or $20,000 for a big name firm, let alone if you can profit beyond your hedge the % they take out of your profits, and all you get in return is an opinion where they think the market is going, and outdated ways to take advantage of the market? Break the cycle of being part of the herd mentality. What is right for your neighbor is not always right for you. Each farmer is an individual and should be treated as such. Each farmer has a different story in everything from is he renting or own, where has he locked in costs, how far from the elevator and so on. I have been trading soybeans and corn since I bought my first membership in 1976, and spent the first 13 years trading them daily in the pit for my own account. I started trading options since their inception in Chicago over 20+ years ago and I am considered an options expert. Being a current member of the CBOT, a Commodity Trading Advisor (CTA) and currently trading over $1 million in a fund account, I am no stranger to the soybean and corn market, I know the best strategy to implement based upon your thoughts, ideas, need for risk protection, with known margin money strategy (I will be your market strategist). I also educate you to my strategies so you will know exactly what you are doing and understand them.
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It is my opinion based upon what I see offered out there, that the service I provide stands above all others. More important than the fact my costs are more reasonable, I feel that my strategies using options outperforms all the rest. I feel the best they could do is equal what I provide.
Other services it seems, concentrate on the fundamentals, but my clients tell me there is a big difference when it comes to the reality of trading, and that is where they see the biggest difference on what I provide. My options knowledge provides what many others have not even thought about, and after a market moves up or down, how to better the position to maximize profits. My daily numbers service makes it a complete learning experience and the ability to know exactly what I am thinking and actually trading, is a big plus.
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I also provide psychological guidance to help clients except reality of locking in a profit that they are happy with and still have upside potential, rather than do nothing and gamble looking for even more profits. I am a trader and use the market to gamble, I make sure my farmers know that I want them to use the market to take the gamble out of their equation.
I work with each producer directly, spend time learning exactly their needs, and explaining what it is they need to do in order to accomplish their goal in marketing. Almost always when I execute their options strategies, I use a 3 way call with the client on the phone when I call down to the trading floor, and they can listen when I tell my friend (CBOT member) to time stamp an order, tell him the account number and what I want to do, then he goes into that option pit and calls out and asks what's there (quote the bid and offer) on let's say an option spread, and we can actually hear the bid and offer for that right now, we can work the order and move our bid and offer, and we almost always get a much better fill than a market order. You can hear what is there and know just how good a fill price you got. No "man behind the screen", or I have to call the desk, which then takes it to the pit, and then the broker tells the bid and offer, and by the time your "guy" calls you back, the market is nowhere near where it was before.
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Do yourself a favor, and look for a better way to market than what you have now.
Make sure you do not gamble with your farm. Sometimes that means to lock in just enough profit to get you to next year. But at the least you will still be here next year. The person who gambles and looks to sell higher, could see prices so low when he is forced to sell, he loses everything. I tell all my producers, if you think the market is going higher, use your 2nd account to place that gamble, but let the farm be the one to sell it to you, we will see at harvest who is right, but the farm hedge will never be wrong.
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| WHAT FARMERS SHOULD KNOW ABOUT MARKETING THEIR PRODUCT? |
Farmers are always focused on fundamentals, not price. This is the first and biggest mistake a farmer can make.
Farmers are always focused on fundamentals, not price. This is the first and biggest mistake a farmer can make.
The future exchange was created so the producer would not have to also be the gambler, not only gambling on his crop yield, but what the price will be when it gets out of the ground.
About a century and a half ago, the Mid America Commodity Exchange (taken over by the CBOT several years back) offered futures contracts that were backed with exchange held money, which would allow banks to feel secure to lend money to the producers to buy seed, fertilizer, and all his needs until he could get his crop in the bin. Before then, it was very difficult to get a loan not knowing what the price will be when harvested. With the futures contract, the bank was secure in their loan no matter the price at harvest.
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With that being said, I see many advisors, brokers, elevators, tell farmers their take on the market and where prices will be in the future. Well guess what? That is not what the farmer needs to know, he needs to know how to market his grain, same as 150 years ago, and so he can sleep at night. He wants to be a farmer, not a speculator. He listens to his never-ending optimistic fellow farmers, who do nothing and wait until harvest, and he seeks advice from the grain elevators, brokers, trade publications, and they always give THEIR take on predicting the future. Some or most even tell the farmer what to do based solely on their ideas but not the farmers, and the farmer becomes a gambler waiting for the price levels that the advice says they will be able to obtain if they wait to market. They NEVER talk about what the farmer should do if the market heads lower, even turning into a bear market, where is the advice then? What was the strategy if corn does not get to $5 and does turn down, can the farmer take that gamble? The answer is simple, he went for advice on how to market his grain so he does not gamble in the future price, and any strategy that does not protect the downside completely to his needs, makes him a gambler until the price for his grain is locked in. He does not need a plan to sell 10% here and 20% there; he needs a plan to sell all his grain especially at these levels that were never seen until last year. He needs that risk taking out of his hands but still have the potential for further gains.
I say, the farmer can lose his own money; he does not need to let someone else lose it for him. If there is any gamble to future price, he should decide on his own fate and not listen to others. He should take all the information he has gathered and make his own decisions.
What I recognize is the need for a farmer to be able to get solid advice on how to lock in the current price, have upside potential, and not have a margin call. He will be able to know what he got for his crop and not have to worry about margin calls that could bankrupt him, or if the market plunges to below his costs.
Selling calls or worse yet futures is the wrong thing to do in today's world. Look at last year and the disaster that occurred when a major gain firm that has a huge grain elevator base recommended selling twice the needed CZ '08 $6 corn calls. When corn went to $7.50 and higher in both June and July '08, the calls were worth $1.50 in the money or $7500 for 1 contract, and worth a lot more than that for the $6 calls. When any futures market is in a bull market, the margins are raised to hold a futures contract. This combination, and an amazing rally never seen before in the corn market, forced producers who at this point had no money and the banks refused to lend any more to hold their position, were forced to buy back those calls, take a beating in losses, and then were faced with an un-hedged crop. To refresh your memory, corn had a high of $4.21 in November and December '08, with lows of $3.38 and $2.90 respectively. He could have hedged his crop for a low of $4.59 since the start of 2008 until the high in June '08 at $7.62 1/2, and July at $7.50. Instead, he saw the lows of the year at harvest time.
I warn you with all my knowledge the one thing for certain that you should be concerned about is MARGIN CALLS. When someone tells you "Do not be afraid of the margin calls when hedging"; this way of thinking insures that you will be an accident waiting to happen.
Why would you put a farmer who is looking for protection in harm's way? My 20+ years of option knowledge and trading, has earned me the right to be considered an expert. I market your grain based on your thoughts and ideas, because in the end it is your money and you should be in control. I can lock in a given price, with no margin calls, known cost, and still leave unlimited upside potential. I can market December corn at $4.50 for $.10 1/2 cents plus commission, if the market is at where I did so at that price on 100,000 bushels on Friday 5/22/09.
My clients all have told me how pathetic their grain was marketed in the past, after learning from me in a few hours of what I am doing; they feel empowered.
Lastly, all doctors, lawyers, and Indian chiefs are not equal. Just because they passed the exam, got a license, does not make them equal. You do not expect a general practitioner to do brain surgery; do not expect people who give good intended advice to be brain surgeons.
My services are second to none. Do yourself a favor; inquire about my hedging services Tel. 312-573-2699.
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