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New Mexico | sense generally to use options with a naked position.
Selling a call, and/or selling a put are not different than a raw live hedge, thus subject to margins if your wrong.
If you would have BOUGHT a put, it's the same position, but your at risk money is what the put costs the day you buy it. If your wrong just let it expire.
For you to collect both sides of the coin so to speak on your contracted $9.11 beans, perhaps one would have bought some calls cheap and out of the money say May 010 ( cost say 5 cents ), And bought some puts cheap deep in the money say Mar 010 ( cost say 5 cents / bu ). Then your total cost with no margin exposure would be 10 cents per bu.
Since you sold 50% at $9.11, that must have been a fair price or you would not have done that.
Heck with half sold at a profit...seems odd that a guy would do anything with the other half regarding futures / options anyway. You said 010 beans so that should mean that you have not planted that crop yet.
If you do not get an 010 crop and this bean deal runs to say $18 that would be a BK scenario for some growers in the position your currently in.
Might be best to get out of those bad positions now, take the hit and chalk it up to education ( another tax deduction ).
NEVER take or offer a naked options position. It's no differnt than playing the live board.
What I like about non naked options is that you buy your positions...then FORGET about it...don't have to babysit the darn board.
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Margin calls are getting old!
