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Oklahoma | Run me through this hypothetical if you don't mind. I'm still trying to learn futures. I'm HRW wheat so that's the terms I'll use.
Say I buy a May 17 $4.50 call and pay $.15 for it. Come February that call is worth $5.50 on the board. I'm guess the call is now worth something like $.75 due to time factor? So if I sell the call in February but the board price goes to $6 before expiration, will I be paying a margin call? Kind of thought once I was sold, I was out.
Edited by farmerbyron 8/29/2016 14:04
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Call risk?
