Near-north Ontario, French River | Buying or selling options could be considered spec'ing, just as taking a position on the CBOT could be, it all depends on the context of the trade. If redoak is looking to lock in a floor price for his wheat, then buying a put is clearly a hedge ( ie not a spec move) assuming he sells that option when he sells the physical grain. If he sells the grain, and holds the put option then he's in a spec position. If he stores the grain and holds the put he's still hedged. Alternately he could forward contract his wheat and buy a Call option, thats a hedge as well. |
selling srw now???
