AgTalk Home
AgTalk Home
Search Forums | Classifieds (83) | Skins | Language
You are logged in as a guest. ( logon | register )

so when should a guy take his hedges off?calls and puts
View previous thread :: View next thread
   Forums List -> Stock TalkMessage format
 
td1
Posted 7/23/2014 22:49 (#3983123 - in reply to #3981616)
Subject: RE: so when should a guy take his hedges off?calls and puts


SW MN - mt. lake/windom
About 16-18 months ago I put some fixed positions on lean hogs. This spring as LH started to rally, margin management indicated that I could be at risk for some extreme margin calls. I used calls to open up my top side as a margin management tool that proved to be important. Anyways what I did is rolled calls 2-3 times to keep current and harvest premiums. Comes at a cost by only obtaining 75-80% of value in roll-ups but may be a compromise approach to still be able to capture upside potential if rally continues and if at top your roll-up ultimately lifted positions off but only for 75-80% of full potential. In my particular case, I would have been better off not rolling positions since june/july didn't drop below last roll-up. For me, it was hard to pass on known returns if only 75-80% of full potential vs. unknown of losing all. Just an idea, may fit your style, may not.
Top of the page Bottom of the page


Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete cookies)