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At 05:03 PM 2/17/98 -0500, Walt Downs wrote:
>Hi all,
>
>Well, a few weeks back, I was bullish on SoyBeans. My indicators were
>showing a strong possibiliy of increased volatility, and higher prices.
>
>In view of the possible increase in volatility, and low premium cost,
>I deceided to be a bit defensive, and implemented Long option straddles
>in May Beans.
>
>1. I was wrong about the mid term direction. Beans did trade up, but
>then collapsed. In my bullish bliss, I totally ignored signals that
>were telling me to get out of the long side.
>
>2. I carried out this entire trade like a total fish. If I had been
>trading futures here, they would have had to fill the body bag with
>tooth-pick sized remains.
>
>Fortunately, the flexibility of options saved me here. Because the
>market volatlity has continued to increase, my straddles still show
>a $100 profit per straddle after commissions.
>
>Man. wrong market direction, and trading with the technical sensitivity
>of a grapefruit, and I still lived.
>
>I LIKE OPTIONS.
>
>Walt Downs
>CIS Trading
>
Walt,
Hang in there. Consider new longer positions. Grains could be our
opportunity. Just a little "fundamentalist" input:
El Nino is still affecting agricultural areas of the country. There
is very little snow this year overall. Yes, we'll get "dumped on"
in March. But ground moisture is low. Many watchers say a lot of
rain will be needed for most crops to do well later in the spring,
especially corn.
Pete
petena9090@xxxxxxxxxxxxxx
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