Sometimes You Have To FEEL When To Sell Your Commodity Market Options

by David Jenyns on September 5, 2006

Sometimes You Have To FEEL When To Sell Your Commodity Market Options
DINERS’ CLUB had just split 2-for-l, and in the last week of January 1958 its weekly volume swelled to 23,400, which I considered unusually high for these commodity market options. As this increase in volume was accompanied by an advance in price, I decided to check the commodity market options fundamentals. They were reassuring. The company was a near-monopoly in an expanding field. The credit-card system, of which it was one of the pioneers, was firmly established. The company’s earnings were in a definite upward trend. With these factors in mind, I bought 500 commodity market options at 24 & a half. My stop-loss was 21 & five eighths.

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