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| Risk management to them likely meant "how far OTM?". Foolish and reckless.
I know there are people who tell farmers to implement a short option-heavy delta-weighted hedging plan. Basically to load up on short options (multiples of their bushels produced) and peel them off to manage deltas on a rally. In my opinion, while this isn't a naked position they will one day have a nasty meeting with the hitmen known as Mr. Gamma and Mr. Vega. | |
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Hey Conan Remember These Guys?
