Texas/New Mexico Stateline | Just like buying and selling a futures contract. Once you have it bought, you can send in an order to sell it back. Set an asking price or market order. I would not do a market order as the bids and asking are usually pretty far apart and there is no telling what you might get.
You can buy an option and sell it right back the next minute if you want. The challenge though is the market is pretty thin, and it may be hard to get a bid.
In your scenario if you had not bought LRP but a put option instead say with a strike price of $140. It would be pretty far out of the money now, but theoretically it would have a little time/volatility value* and you might be able to salvage some of that value by selling it back. Then buying the $150 put that is closer to the money. As it gets closer to expiration, the value would eventually be $0 if it was out of the money. We are 3+ months away from expiration, so it has some value even though it is below the market.
* Price today is around $.975 for a $140 put Jan feeders. So it is worth about $480.
edit: I don't want to sound like I know more about this than I do. I have not bought and sold very many options, but have a few times. I'm like coyotehunter down below, options generally are fairly expensive for the amount of risk they cover. About the only time they really pay off is when the market has a huge drop.
I like using puts when the market is in the lower trading range, and I have a feeling there is still a lot of upside potential. I can set a floor, but keep the top open for higher prices later. Otherwise when the market is high, you might as well just do a futures contract.
Edited by milofarmer1 9/18/2018 15:07
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Question on feeder cattle puts
