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| Selling calls or puts can be a dangerous proposition.
You have limited reward against nearly unlimited risk.
You have to maintain a margin on put or call sales.
I have friends who know things that one needs to know and they say the ones that are carried of the floor without their wallet or their dignity intact are option sellers. Don't get lulled into thinking they are safe or easy money or overpriced. They are chuck full of peril.
One could sell calls against grain he has on hand if not sold and wait for it to be called away at least that way you won't get your head chopped off. And limits don't apply . You sell a bean call or corn call and it frosts or freezes and corn or soy lock up ,they are coming after you and your calls with no limit and your getting a margin call. Sound like fun? Gonna stick till the next day?
Missing a market and trying to reinvent the wheel mostly leaves you with a square wheel.
My thoughts anyway ,be careful
Edited by sealkiller 9/10/2014 18:16
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When do you sell a call vs. buying a put??
