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| You are right, but like other posters explained buying back sold grain with calls or straight futures is considered as a speculative transaction thus it is marked to market unless you have a use for the commodity you are buying back example: corn farmer buying corn back to feed cattle. Another downfall of this type of strategy is that if you are wrong and the sum of the capital loss is more than $3000 you will have to carry over that loss and write off $3000/year till the total lost is written off unless you have capital gains that offset the loss. | |
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Taxes and call options
