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NE Oregon | However, if you have sold cash grain for whatever your reason may have been. And you suddenly believe the futures price is going to go much higher, you can spend money to buy a Call and do what is called "re-owning your sold bushels". And if the market does indeed go much higher above your Call's specific price, you make money on your trade and add it to your "cash price" you sold for. If the market never goes up, or doesn't go up above your Call's specific price, you only lose the amount you originally spent to buy the Call. And you should subtract that cost from the "cash price" you sold your bushels for, to be most accurate. Otherwise we're just speculating. | |
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Futures trading
