The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1918-07-26

TSluSttS CfLIief TO ADVANCE Or TO de-
cline, because brokers have been sup
plid with selling or buying orders in
excess of demand.
Privileges" Puts" and "Calls."
A putt is the privilege or option
which person purchases, of "put-
ting" i. e., delivering property Or
contracts for property to the seller
of such privilege, at a named price,
within a stipulated time-one or
more day, or weeks or months.
puts" are good (from the buyers
standpoint) when the market de-
clines below the "put" price within
the time covered by the privilege
contract. The buyer can then buy
the property at the cheaper figure,
and "put" it to the person who SOLD
him the risk, his profit being the diff
ference between the "put" price and
the quotation at which the property
Is bought with which to make the
delivery. A "call" is the reverse Of
put the purchase of a 'call" ac-
quiring the right to 'tcall" upon the
seller of the privilege for property,
or when the market advances above
the call price, and the buyer Of such
privilege is enabled to sell at a pro-
fit the property called" from the
seller of the privileges. Trading in
privileges is illegal in some states,
notably in Illinois.
"Pyramiding." Enlarging ones op-
erations by the use of profits which
one has made.
"Scalper." One who trades in OPP
tions continually, and, by reading the
temper of the market at the NOM
ent, tries to get a profit out of min
or fluctuations.
"Scalping." Buying and selling on
small fluctuations of the market
Taking small profit or loss.
"Short" or "Short interest" The
seller of a property which he does
not deliver until he has afterwards
bought the same is called "short"
He is, by necessity, 'bear." The
aggregate amount of such shortage
is called the "short interest"
"Short market" A market that is
0versoid; the volurne Of open con-
tracts to deliver property being In
dangerous excess of available supply.
"Short sellinga The process of
selling property for future delivery,
in expectation of being able to OBJ
tain the property cheaper before the
maturity of the contract, or Of being
able to close out the contract at a
profit without the actual delivery of
the property.
"Split." A transaction, one-half
at one quotation and one-half at an
| other. For instance: the quotation
So 5-8-3-4 means that one-half OF
the quantity traded in was at So 5-e
and the other half at So ga. This
quotation is just halfway between
So So and So 3-4. Only an even mum
Der of thousand bushels can be trad.
ed in on a split, as, for instance
1000, 5000, 10000, etc.
Spread" A spread" is 9
double privilege emitting the holdel
to deliver to, or to demand from the
signer certain amount of stock or
the terms specified. Differences il
prices, as between May and July
wheat, or between the "put" ant
"call" price, or between the price O.
the same option in different cities.
Squeezed" Sale of "short sell
ers," who, by reason Of having over
sold the market, are forced to pay al
artificially high, price for propert.
with which to fill contracts.
''Stop order" An operator ma,
give his brokers orders to close on
his deals when the market goe
against him, and when quotation
reach a certain point, and in tina
case he is said to have given
"stop order" When a declining mar
ket is filled with "stop orders" to sci
the bears may make extraordinar
efforts to force quotations down to
point which reaches the "stop OF
ders," and which will then throw O
the market more securities or com
modities. In the same way, on a
I advancing market, the bulls may er
deavor to raise quotations to a poir
that will reach "stop orders" of shol
5 sellers, and force their brokers
, become buyers.
( "Straddle." A trader who
"long" of one option and "short" {
: another option has "straddled' tn
market. For example: A buys cor
J for May delivery, and sells an equ;