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You may want to scale into a position using the mid-am contracts. You are
wise not to chase the options at these premium levels.
Regards,
Tom Alexander
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From: Terry S. Smith <tesla@xxxxxxx>
To: Terry S. Smith <tesla@xxxxxxx>; realtraders@xxxxxxxxxxxx
Subject: Re: GRAINS HEADED FOR A DOUBLE BOTTOM
Date: Monday, August 02, 1999 10:52 PM
Just an update to my grain trade mentioned last week "LEFT IN THE DUST"!!.
Was correct in the direction of grains but to date do not have a trade in
the markets. Trying to buy options at the very bottom was a bad strategy
because I was never filled. With Beans up limit today no sane trader would
buy options at these prices. Two weeks ago when everyone thought beans were
going to 3.00 a bushel you could buy all you want. I learned a valuable
lesson: I can be correct on the direction but incorrect on my entry and not
make any money. Next time beans go to 26 year lows I will scale in Call
options as they collapse. Will have to change strategy as soybean call
options have become way overpriced. Happy trading.
-----Original Message-----
From: Terry S. Smith <tesla@xxxxxxx>
To: realtraders@xxxxxxxxxxxx <realtraders@xxxxxxxxxxxx>
Date: Tuesday, July 27, 1999 6:16 PM
Subject: GRAINS HEADED FOR A DOUBLE BOTTOM
GRAINS- It is my opinion that the grain markets are headed for a double
bottom. Here is how I will capitalize on this opportunity. Will attempt to
buy the March 550 soybean calls on a limit order of 4.5 cents per call,
$225.00 an option. If filled will sell half of the position on a double and
monitor remaining position. I have witnessed over the past 6 months markets
making multi-year lows on double bottoms. Oil and Copper are a few
contracts that come to mind. Happy trading.
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