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.
08-30-2006
