Futures Market - Palladium Highlight #3
Acceptance of delivery suggested for March palladium positions.
(COMMENT # 249)
UPDATED 19980324
COMMENT 1998-249
1. If you are still holding a March palladium contract (or contracts) in addition to the pyramid in June, you might want to consider taking delivery of the metal in manner similar to the delivery strategy presented for silver in the "TRADE OF THE YEAR" in last year's "The 1997 $upertrader's Almanac - 2nd Half Edition".
2. The key is to work out the nuances with your broker.
3. Each brokerage firm will have a department that specializes in delivery, storage, insurance, fees and so on.
4. Options can be sold against the position to produce income to offset storage fees.
5. The way out of the position is to sell a deferred contract when a price objective has been attained and to deliver the metal back to the market.
6. The objective of this process is to have your equity denominated in an appreciating asset instead of a constant fiat currency.
7. The (hopefully) appreciating asset is then used to produce the collateral that will support your normal trading positions.
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