Lesson 37: Mrs. B - "Buys Wheat"
On Monday morning, September 24th, 2001, before the markets open in Chicago,
our hypothetical Mrs. B plans to call her hypothetical commodity futures broker
with the following hypothetical order,
"Buy l contract of Chicago May Wheat at $2.87 or lower, day order only".
Chicago May Wheat futures closed on Friday, September 21st, at $2.86.
Mrs. B is willing to buy the May Wheat Futures contract and pay a premium
of 1 cent above Friday's close to do so. There is no certainty, however, that Mrs.
B will be able, on Monday, to buy the May 2002 Wheat Futures contract at this
price since the market may not trade at that level. With a close on Friday
of $2.86, it is likely, however, that this hypothetical trade will hypothetically
take place. We will know once the markets open and close on September 24th.
Mrs. B will try to buy Chicago May Wheat on Monday, September 24th, and
she plans to use the "Choppy Market
Method" to trade her position once she has acquired it. If Mrs. B is
able to assume her hypothetical wheat position, you will be able to follow her hypothetical
trade on this Web site. A new lesson will be posted Monday, after the markets
have closed for the day.
To order a copy of Bruce Gould's "Choppy Market Method" to understand
"Mrs. B's" reason for picking May Wheat Futures at this time, at this
price, click here.
Proceed to lesson 38 by
clicking here.