Quote:
Originally Posted by Spoon
Have a question for some of you who trade futures.
I've been holding on to some BAC but would like to take some off the table at $29-$30 range. However, I don't want to take the capital gains for 2017 and would prefer to defer my gains to 2018.
If that's the case, should I be buying calls with for example:
Expiry date: Dec 29
Strike: $29.50
Anyone want to educate a futures noob?  |
You want to get rid of the shares after the new year, so you would buy puts, giving you the right to sell at an expiry date after the new year. Calls give you the right to buy.
You could also sell a put (look up "protective put") if youd still like to get rid of it at a minimum of $29, collect a small fee, and still have room for upside.