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north central Oklahoma | Pofarmer,
you said - "If you want to hedge production, sell it, and buy a call. This protects your bottomside and leaves the top side "open" minus the cost of the call."
Are you referring to sell to local buyer for delivery or sell short a position. I understand how it would leave the topside open less the cost of call of contracted local and he still owns the call. But if he sells via a short hedge position, how is the top left open with both a short and a long position owned. It's the beer I tell ya, so be gentle on me | |
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Using Options as Margin??
