So when the shit hits the fan close to your expiration date, you don't have to close at a loss, (or roll a loss forward?)
So why don't you just sell naked puts or calls on natural gas? Why bother hedging that? Don't be this guy. Go bass fishing.
This was the original post. So why trade futures if you're just going to hedge, it doesn't make sense but ok
Because isn't selling naked puts or calls the same as buying or selling unhedged futures? @destriero Need some help on this one.
Seems to me like futures+options it's the same as buying/selling two options but now you're going across markets which is fun.
The sticking point was about hedging. How is buying two options, or selling two options, the same as hedging, and how does that equate buying or selling a future unhedged? Sincerely yours, Confused.
I buy naked options all the time. I don't see why buying naked futures is problematic. But I don't trade futures, so I am speaking from complete ignorance, even more so than normal.