Yes it's that simple, although as long as you know the markets going up there is no need to buy a call. Generally speaking they work ok if you are paying storage. Usually close enough to buy and option,hold the paper and sell the grain. Where guys get in trouble is playing both ends. Holding the grain and buying an option,then the market turns against them and you lose on both ends. best way to get a start is buy one. Makes you keep a better eye on the market. With the wild price swings in recent months a good broker is tough to beat. They are watching all the time not once a day. All kinds of options and spreads out there. Just remember 90 percent of options expire worthless. Sometimes thats a good thing. Means you sold your grain for enough to cover the loss. Course if you like to wash cars like SC and have the same deep pockets, can sleep well with lots on the line,broker calls and margin calls don't bother you then you can jump right into futures. Least with options you know your losses up front. |