Appomattox/Fredericksburg, VA | How do folks decide to do a put or call option? I'm new to options and struggle deciding which option to purchase, which date of expiration. For a simple example; in Dec Corn, how would someone decide to either buy a put option or just sell the physical and buy a call option? OTM calls aren't too big of a cost and the put option doesn't gain in value as quick as the futures price loses. Yea if the price goes down the put option gains value but when I have to sell the physical, it doesn't seem like I'll net the same price vs. just selling the physical to begin with and buying a cheap call option.
Anyways as all can see I seem to talk myself out of doing things (though I did just buy my first put option). We'll see how that fares.
Thanks for any helpful input. Trying to keep my head out of the sand and try new things to better my marketing. |
Put or call?
