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Northeast Arkansas | I done this about a three weeks ago in beans. Bought two 9.20 puts for .39 and sold two 13.00 calls at .39. So far I'm down .16 on the puts and .47 on the calls, for a loss of 63 cents. I seem to gain about half of what the market increases. If you can stand the margin calls, and stay in close to expiration, your top and bottom are pretty much locked, but they're beginning to get to me. If I had it to do over again, I would bow up and simply pay the premium for the puts and forget the calls, but hindsight is 20/20.
Another problem is exiting these positions early, you have to take the loss, which is deducted from your final selling price. | |
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Would you buy a put and sell a call...
