EC Nebraska | biggens_ia - 6/20/2018 14:55
how is putting a floor under yourself with the long put and a ceiling with the short call an accumulator contract? are you sure u know what your talking about?
It's what the other side does to offset the contract. That's why bushels double up when the price goes up. They need those bushels to offset the call. When the price drops enough to generate enough profit from the puts, the contract kicks out and they take their money and go home.
If you know of a current accumulator contract being offered, can you get the relevant prices and post them? It shouldn't be too hard to see what strikes are being used. |
Accumulator contracts
