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South Central ND | I regrettably sold a futures contract a week ago for wheat at a less then desirable price. 5.67 with .85 basis. I'm looking to protect that contract against higher prices by buying a call option. I wish I would have done it sooner but to late now. I haven't done it because I am new to it and don't fully understand it. If I buy a 5000bushel call option now at 5.99 futures and set a strike price at 6.50 and the premium is around .11, where do I break even or begin to make money? I guess my question is how would that work? I'd rather hear it from someone with experience then from the broker himself even though he's probably doing his best to explain but every scenario doesn't seem to come up. Tia | |
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Educate me on call options
