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Wcks | I have lately began thinking about selling out of the money calls to pay for or reduce the cost of new crop wheat hedges(puts). My broker strongly discourages this practice and i have scars to support his case. In that time frame( 2007 ish) I did just that to buy puts on corn. I could make the margin calls, there's no way corn is going above $7.00 right? Right! I made margin calls to the point I cried uncle. Fortunately my broker said at the time, after reminding me this was why we don't do this, he asked me to stay with the position for a couple more days. The market turned and all was well in the end. But it was a great education. | |
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Be careful w/ exotic grain marketing contracts
