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central MN | Rather than spend .17 ($850) on a OOTM 5.20 call buy a mini. If corn goes up .75 you will be ahead $750 (1000 bu x.75 =$750) or .15 on 5000 bu. The $5.20 call value would have to go to .32 to be equal. Not likely with loss of time value.
If your wrong and the price goes down you have time to get out. The price has to drop .85 to equal the $850 spent on the 5.20 call.
Edited by milks 10/14/2013 15:51
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call strategy
