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    How do I know that this can happen?

    Simple: It has happened to me! Let me show you the play-by-play…

    Summary of trade:

    * Name of Company: Cemex (ticker:CX).

    * Opening Trade: Bought 20 contracts of CX on January 31, 2005 at $2.40 a contract (March 2005 expiration, Strike: 35).

    * Closing Trade: Sold 20 contracts of CX, two days later, on February 2, 2005 at $4.00 a contract for a profit of $1.6 a contract, or 40%.

    * Between the time I bought and sold my options, the stock moved $1.32.

    This was my first time my options “popped” in such a short period of time. A “freak of nature” type of incident? I don’t think so! So why did this happen? Now I do admit, however, while I would love

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    ompany: Cemex (ticker:CX).

    * Opening Trade: Bought 20 contracts of CX on January 31, 2005 at $2.40 a contract (March 2005 expiration, Strike: 35).

    * Closing Trade: Sold 20 contracts of CX, two days later, on February 2, 2005 at $4.00 a contract for a profit of $1.6 a contract, or 40%.

    * Between the time I bought and sold my options, the stock moved $1.32.

    This was my first time my options “popped” in such a short period of time. A “freak of nature” type of incident? I don’t think so! So why did this happen? Now I do admit, however, while I would love

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    ke: 35).

    * Closing Trade: Sold 20 contracts of CX, two days later, on February 2, 2005 at $4.00 a contract for a profit of $1.6 a contract, or 40%.

    * Between the time I bought and sold my options, the stock moved $1.32.

    This was my first time my options “popped” in such a short period of time. A “freak of nature” type of incident? I don’t think so! So why did this happen? Now I do admit, however, while I would love

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    , or 40%.

    * Between the time I bought and sold my options, the stock moved $1.32.

    This was my first time my options “popped” in such a short period of time. A “freak of nature” type of incident? I don’t think so! So why did this happen? Now I do admit, however, while I would love

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    a short period of time. A “freak of nature” type of incident? I don’t think so! So why did this happen? Now I do admit, however, while I would love to have all my trades profit this quickly, there is always a little luck when it comes to how quickly things move. But what was not due to luck were the reasons that I entered into this trade in the first place.

    Three factors led me to believe that this setup looked ripe for the plucking.

    First: The trend is always your friend.

    This is a simple, yet, often overlooked statement. Higher highs, and higher lows indicate an up-trending graph (I’ve circled the higher lows in the graph). The reason why this rule is overlooked is because people try to speculate - a stock can

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