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central ontario | Kencat if you want some coverage the July 3.50 has an about 3 months left on the time value and is in the money about .14 cents ,the cost last night was around .24 cents giving you coverage for three months at about .10.This option has risk as do all options but will move just about penny for penny and is priced at fair value,but still cheaper then the outright futures and has limited risk associated to it's cost .
I would not go past the 4.00 call which is about .07 and priced at about half the value of say three weeks ago,buying on a pullback is at least giving you some edge of a better entry point then say 3 weeks ago.Depending on the amount you want to purchase ,you do not have to buy everything all at once,there may still be opportunity to buy going forward also. | |
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Corn calls?
