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<DIV>Nothing hard about position trading although the position trader needs
to be better capitalized than the day trader. The road map is often quite clear
for those who know how to read it. The sugar GIF I posted a couple of hours ago
happens to contain a complete roadmap which identifies all 3 possibilities and I
know exactly what I will do in each case. If I can't prepare a roadmap which
covers all the bases I don't trade. And if I can't see my way to a good night's
sleep with position on, I don't trade it or I cut my size.</DIV>
<DIV> </DIV>
<DIV>I'm happy that day trading suits you just fine but the tone of superiority
combined with digs against the position traders really get tiresome.</DIV>
<DIV> </DIV>
<DIV>Earl</DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A href="mailto:t-bondtrader@xxxxxxxxxxxxx";
title=t-bondtrader@xxxxxxxxxxxxx>t-bondtrader</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:realtraders@xxxxxxxxxxxxxxx";
title=realtraders@xxxxxxxxxxxxxxx>realtraders@xxxxxxxxxxxxxxx</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Thursday, March 23, 2000 1:43
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> [RT] Telegraph Pole on the
Hill</DIV>
<DIV><BR></DIV>
<DIV><FONT face=Arial size=2>Well the bonds closed down, but leaving what
might be thought slightly too much of the pole above ground. However,
with the benefit of the overnight tonight, we may see what might turn out to
be a good down-bar to prove the point. On the other hand we might
not! How you position boys ever get to know what the market is
really going to do, I know not! I really
don't</FONT></DIV></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Thu Mar 23 15:05:37 2000
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Date: Thu, 23 Mar 2000 14:58:32 -0800
From: Ira Tunik <ist@xxxxxx>
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Subject: [RT] Re: Sugar revisited
References: <39.2849294.2603a291@xxxxxxx> <006e01bf9024$77620c40$e5c5b4d1@xxxx> <02a701bf902c$5928cc70$63ceead8@xxxxxx> <030101bf903c$f80a3800$63ceead8@xxxxxx> <01e701bf93fa$2cc924f0$2c2a42cf@xxxxxx> <04cb01bf9505$18b0ac70$2c2a42cf@xxxxxx>
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Status:
I have posted this message before for both option, stock positions; options
futures positions and spreads. You should always put them on for a net price.
About 5 years ago I had one heck of a time getting the bean pit to understand
what I wanted to do. I finally was able to get it done. It is a common
practice in stocks and stock options.
Earl Adamy wrote:
> Having been previously burned by stop running in the sugar pit, I
> learned my lesson this time. A bit of investigating turned up the
> information that there is what is referred to as a "lay-up" which is
> similar in concept to a spread but employs a futures contract and an
> option. This combo is ordered for a net price and insures that both the
> future and the hedge (put or call) are executed simultaneously.
>
> In this case I feel reasonably sure that either a bottom is in or a
> significant correction (rally) is underway. I put in a lay-up order to
> purchase the future (closed 22Mar at 525) plus a May 550 put (closed
> 22Mar at 34) for 560 (10 cents premium to strike or 112.00 per contract)
> and was filled. Because the put is already deep in the money, I have
> dollar for dollar protection on the downside and will give up nearly
> dollar for dollar on upside to 550. If sugar rises to the 565 (5 cent
> position margin) area and fails, I will sell the future and maintain the
> short with the put. If sugar rises toward the 601 (41 cent position
> margin) area indicating the beginning of a new trend, I will likely sell
> the future, hold the put for the retracement, and sell the put. In the
> meantime, I don't have to worry about stop running or limit moves in
> the pit.
>
> I have a similar position with different trading tactics on in silver
> (another NY pit) using silver future and a 525 put. I believe silver
> will either drop significantly (through today's 510 low at 62%
> retracement followed by 506) where I will sell the future and trade the
> put, or blow out to upside. Based on time measures, I believe the
> bullish case has higher probability.
>
> Earl
>
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