Here you will find past OnlyDoubles trades. This blog's purpose is to update the public on recently completed OnlyDoubles trades. If you would like to learn more or subscribe (for real time access to new OnlyDoubles trade ideas) please visit our Subscription page.
Sugar #11
Sugar prices have been trending higher (according to CRI's CTS) for 7 weeks now. When prices first broke CRI suggested one ought to pick up the October $.20 call options for $.0032 ($407US). As the chart to the left above shows, prices have moved dramatically higher over the past month. Indeed, price has moved up so much that our $.20 call option has doubled in value (.72 bid / .79 offered as of writing this AM).
While I do believe there is still more room for this market to move higher (and for the option to continue to move higher in price), the prudent action by all investors is to sell at least half of your position should it double in value. Today's blog entry then is a testament to this time tested principle.
If one sells at least half their position today (at .75 or better) then the absolute worst case scenario on this trade will be to see the remaining half of the position expire worthless (which we of course will endeavor to avoid). Should you decide to sell the whole position today then your profit on this 7 week trade should be just about 100%.....not bad at all!
Now what you do with the profits is up to you, but you might want to check out the latest edition of CRI's OnlyDoubles to find out where CRI sees the next potential double out there.
That's all for this issue of CRI's OnlyDoubles,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com
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