Neutral Nick made an update to his position today; see
below for some of the information.
Keep in mind eventhough he is trying to stay even he is trading plenty and has outragous margin requirements; it appears his system should work provided he doesn't get stuck with some fast moving options; but his risk isn't exactly a small one.
The one good thing that he has done nearly everytime has been to collect premium; today he added nearly $400,000 in premium to his account.
As for the cost of the margin to have an accout like this; I will be getting a portfollio quote from who we hedge our grain with. The scary thing is that I really don't know where to even guess it might be. I do know that on the first day his margin requirement was about 2 1/2 to 3 times that of the same number of bushels being sold via 20 futures contracts of each soybeans, corn, and wheat.
The above screen shot doesn't show that on a break of $4.00 to $6.00 with out adjuting he has the potential to be out millions; perhaps not even single digit. So this type of style has plenty of risk and I guess over time we shall see if the risk out weights the reward or vice versa.
below for some of the information.
Keep in mind eventhough he is trying to stay even he is trading plenty and has outragous margin requirements; it appears his system should work provided he doesn't get stuck with some fast moving options; but his risk isn't exactly a small one.
The one good thing that he has done nearly everytime has been to collect premium; today he added nearly $400,000 in premium to his account.
As for the cost of the margin to have an accout like this; I will be getting a portfollio quote from who we hedge our grain with. The scary thing is that I really don't know where to even guess it might be. I do know that on the first day his margin requirement was about 2 1/2 to 3 times that of the same number of bushels being sold via 20 futures contracts of each soybeans, corn, and wheat.
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