Ethanol Margin Management & Golf Outing – Minnesota

This workshop is designed to help ethanol producers manage forward margin exposure and protect equity from excessive market risk.

Join us for an optional 18 hole golf scramble at 1PM on day one. Golf is limited to twenty eight golfers so please register early to assure your spot.

Tuesday, August 7

8:00 Welcome and Introductions
8:15 Best Practices of Effective Position Management: Overview of the
margin management approach and initiating positions complimentary to
historical margin percentiles as well as a discussion of position
management and evaluating how much risk the operation wants to retain
at any given time
9:00 Introduction to Options: Types of options, definitions, contract
specifications, terminology. A specific conversation on time value and how
implied volatility will impact option premiums will also be discussed
9:45 Break
10:00 Group Exercise 1: Using futures and a basic option strategy, teams will
attempt to manage a historical forward corn price by initiating coverage
and managing those positions
11:00 Group Exercise 2: Using futures and a basic option strategy, teams will
attempt to manage a historical forward ethanol price by initiating coverage
and managing those positions
12:00 Adjourn
1:00 Optional: The Meadows Golf Course at Mystic Lake
5:30 CIH Hospitality Reception – The Meadows Bar and Grille

Wednesday, August 8

8:00 Review of previous day’s material with Q&A session
8:15 Core Strategies: Core strategies to manage the risk of both higher and
lower prices using futures and various option combinations. The features,
advantages and disadvantages of each will be discussed along with cost
and benefit tradeoffs. A specific conversation on delta of the various
positions along with how those positions will impact the operations entire
portfolio will also be discussed
9:30 Break
9:45 Core Strategy Adjustments: Discussion of position management and
making tactical adjustments to strategies over time to manage both delta
and volatility to take advantage of opportunities that may arise
10:00 Price Management Simulation: Integrated online simulation incorporating
both futures and options strategies to manage an ethanol plant’s price risk
through a historical market.
1:00 Closing Remarks: Scott Gerig, Manager – Business Development

NASBA Continuing Education Credits: 8

Commodity & Ingredient Hedging, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org

Learning Objective

Participants will be introduced to the mechanics of the futures and options markets and the terminology related to the futures industry. Participants will also learn how to utilize risk management strategies to manage commodity price risk.

Learning Level

Basic

Prerequisites

None.

Delivery Method

Live

Enroll

If you’d prefer to enroll by phone,
please call 1.866.299.9333.

Price

$550

Dates & Time

Aug 7th, 8:00 AM – 12:00 PM and
Aug 8th, 8:00 AM – 2:00 PM

Location

Mystic Lake Casino
Prior Lake, MN 60603

Call 1.800.262.7799 until May 31 to book your room directly. Mention CIH room block for $139 rate for nights of August 6,7.

Golf Registration

Join the 18-hole golf scramble starting at 1:00 PM at the Meadows Golf Course at Mystic Lake on August 7th.

Golf Scramble
The charge is $100 per golfer and is limited to twenty eight golfers, so please register early to assure your spot. Please email sgerig@cihedging.com to request the members of your golf party.

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