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| I sell calls during high volitility and usually during spring and early summer. Make sure you have the grain to back it up. A $5.00 call for $.13 premium may be a better strike. I would be more than happy to sell $5.13 corn on Nov 20th. I hear a lot of chatter here on margin calls and the margin killing you. Margin is cash flow. If corn goes to $6.00 on option expiration your hedge account will have a .87 loss. You will be selling cash for $6 to pick that up. We as farmers need to be thinking more like elevators. If you don't want to have margin calls than don't excpect to get the best price or better yet reduce risk.
I have made a ton more money selling options than buying them. | |
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Selling Corn calls
