Nick's Margin Requirement's - WOW!!!!! Good? Bad? Lot of Cash either way!

I asked Country Hedging for the margin requirements that they would have for the mock marketing character Neutral Nick; so I sent them (Joel the main contact for MWC) all of Nick's trades and prices of his trades.

Here is the response I received

"Here is what I got from the back office:

Corn:

Initial margin $6.796298 million

Cash $5.351587 million (incoming cash from the sales of options)

Margin Deficiency $1.444710 million

Soybeans:

Initial Margin $5.201993 million

Cash $5.201993 million

Margin Deficiency $1.518638 million

Wheat:

Initial Margin $6.420553 million

Cash $4.781843 million

Margin Deficiency $1.638710 million"

Now when I first look at it my response is ouch that is alot of money; but then I look back at Nick's projections and look at a rate of return.  Just for rounding previous posts indicate that Nick has a chance to be up 14 million; let's say we take off slippage and fees and come up with a 13.5 million number.  Which it could be alot worse or better when things are done depending on his actions and more importantly the market movement and volcity of that said movement.  But if we take 4.5 million roughly out of pocket margin requirment and use the 13.5 million as an target for profits; that is a 300 % return.  Nick started this program or plan about the last week of Dec; his options expire the last week of June.  So if I look at it under those terms Nick has a chance (assuming the risk associated with futures and options doesn't break him first, his banker held in there, and his wife didn't pack up in leave because of all the stress) a chance to have an annualized return of about 600 percent. 

This blog and the works therein are hypethetically and don't mean results will be similiar.  But so far if he can beat the things working against him he has a good chance that both in dollar terms as well as percentage terms things good go rather well for them.