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| Pleas hear me out before you shun this.
Looking at July KC HRW it closed today at $8.14 3/4. An AT THE MONEY CALL OPTION ($8.20 stike closed at $.75
Question, do any brokerage firms exist where I would be albe to sell the July Futres and Buy an AT THE MONEY CALL OPTION and use the call as margin rather than a cash margin??
This would give me a $7.40 floor for JULY KC 2008 (even though I would rather be in DEC but the options are too expensive are non existant) with unlimitied ceiling AND I am not committeind ANY ACTUAL bushels to any particular elevator.
I realize this is a very expensive propostion BUT so is outright selling and then not having the bushels to cover in the event prices are higher down the road. I use CRC CROP Insurance but it doesnt cover much any more at my beat up APH and 70% coverage level.
Need pros AND cons.........
Off to High School Basketball...........Let the games begin!!!
Buckwheat | |
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Using Options as Margin??
