|
ND | In our area, we have a broker that encourages this alot. Sometimes it is a big pain in the @ss, when you write you are responsible to margin it, just like buying a futures contract.
I did a bunch of $10 dollar bean puts last spring, nov. contract, when they went against us then we wrote some cheap calls against them,, making a spread trade. Got to trade and work your options however you buy or sell them or you join the 85% club.
At the end of the day, just buying or selling straight futures is still my preference, you just have to have plenty of margin money. True hedging is just insurance and insurance costs money so there you have it. Hard to have your cake and eat it too,,,sometimes you get lucky. Speculating is easier, cuz I only do it to try and make extra cash, plain and simple as that.Much easier to trade stuff that you do not own or have a bond too. | |
|
Well, someone had to take the other side.
