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Ottawa Canada | I think this is the place to discuss it. I have trouble with buying calls when we are in a carry market...It can work but need a fairly large run up to make any money.
For an example, if you bought a July19 $3.90 call for roughly 20 cents, it has to expire over $4.10 + commissions before profit(it could be worth more at some point through the trade if sold). The option value does not follow 1 to 1 with futures so a move up of 10 cents (futures) might only be 3-4 cents of option value.
I'm not trying to discourage you from buying calls because I feel the best way to learn is to try. If you lose the 20 cent premium, you actually lowered your selling price of cash corn sold.
I hope others chime in. | |
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Buying a corn option.
