Interdum stultus opportuna loquitur...

Wednesday, October 20, 2004

Blast... Cattle Tanked Too Early

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I wanted that Live Cattle December04 89 option at$1.90-ish (or lower) - thinking that Cattle might open with a little pop upwards just to let me get set. After all, the last half-hour of the previous session had been a little bit bouncy. Too bad; it opened down (Live Cattle opens at midnight, our time) and went further and further. It closed off its low - which was 2.35 (2.6%) lower than the previous session close - but that's little solace.
Note that the market was closed when I posted (the chart below shows two days of price action - the vertical drop in the middle happend in the 15 minutes after the open, and almost all of it happened in the first 2 minutes.
Opened down anddropped like a rock
Sadly, the option I wanted (which closed the previous session at $2.15, but was $2 bid) ran far too fast. It closed the session at $2.60 bid/$2.90 offer.
Oh well. Sometimes you get to the check-in just as the plane is leaving he ground.
At least the direction panned out - I should've been less tight-assed and just sold a futures contract... the margin is $1620 and it's $4 per .01c move. Last night's move was an $820 move from open to close.