Date
|
Cash
|
Options
|
Basis
|
October
|
Expected Minimum Selling
Price = $78.70
Expected Maximum Selling
Price = $84.70
|
Buy $80 FEB LC Put
for $2.50/cwt
Sell $86 FEB LC Call
for $2.20
|
Expected
-$1.00
|
January
|
Sell Steers
for $81.00
|
FEB LC @ $82
Put Option Expires with $0 value
Call Option Expires with $0 value
|
Actual
-$1.00
|
Lose $.30/cwt
|
|||
Net Realized Price=Cash Price +/- Gain/Loss in Options = $81.00 - $0.30 = $80.70
|
Date
|
Cash
|
Options
|
Basis
|
October
|
Expected Minimum Selling
Price = $78.70
Expected Maximum Selling
Price = $84.70
|
Buy $80 FEB LC Put
for $2.50/cwt
Sell $86 FEB LC Call
for $2.20
|
Expected
-$1.00
|
January
|
Sell Steers
for $90.00
|
FEB LC @ $91
Put Option Expires with $0 value
Must Buy Call Option for $5.00 value
|
Actual
-$1.00
|
Lose $5.30/cwt
|
|||
Net Realized Price=Cash Price +/- Gain/Loss in Options = $90.00 - $5.30 = $84.70
|
Date
|
Cash
|
Options
|
Basis
|
October
|
Expected Minimum Selling
Price = $78.70
Expected Maximum Selling
Price = $84.70
|
Buy $80 FEB LC Put
for $2.50/cwt
Sell $86 FEB LC Call
for $2.20
|
Expected
-$1.00
|
January
|
Sell Steers
for $73.00
|
FEB LC @ $74
Sell Put Option for $6.00 value
Call Option Expires with $0 value
|
Actual
-$1.00
|
Gain $5.70/cwt
|
|||
Net Realized Price=Cash Price +/- Gain/Loss in Options = $73.00+ $5.70 = $78.70
|