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Posted: 12/18/2016 8:59:42 PM EST
What did they do to break the Dukes? I can't tell what they did in there if they were both buying and selling or what it was Dan Acroid yelled out to start a fury of trading. I just saw it on tv and was curious. Thanks
Link Posted: 12/18/2016 9:13:12 PM EST
I dunno, but JLC's tits were spectacular in that movie.
Link Posted: 12/18/2016 9:14:08 PM EST
Holy shit OP i was just watching too and ready to start this exact thread!! LOL
Link Posted: 12/18/2016 9:16:18 PM EST
In.
Link Posted: 12/18/2016 9:17:40 PM EST
[Last Edit: 12/18/2016 9:20:40 PM EST by KaiK]
They drove up the price of OJ by giving the Dukes a false crop report. The dukes bought at this high price. Then when real report came out. Everyone started selling like fucking crazy and the price dropped. The dukes couldn't sell theirs so they had to pay for what they bought at super high price.



On the other hand Dan and Eddie sold high what they didn't have and bought low. And made insane amounts of money.
Link Posted: 12/18/2016 9:18:33 PM EST
Pump and dump.

Link Posted: 12/18/2016 9:26:05 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By KaiK:
They drove up the price of OJ by giving the Dukes a false crop report. The dukes bought at this high price. Then when real report came out. Everyone started selling like fucking crazy and the price dropped. The dukes couldn't sell theirs so they had to pay for what they bought at super high price.



On the other hand Dan and Eddie sold high what they didn't have and bought low. And made insane amounts of money.
View Quote

Actually, they let the Dukes drive up the price buying all the way to the top, aided by the lemmings that figured out the Dukes were trying to corner the market, driving price up even more.  When the real crop report came out indicating there would be no shortage of OJ, the supply/demand v. price curves worked as designed.  Supply went way up (over the traders' assumption), demand wouldn't change, price drops.
Link Posted: 12/18/2016 9:27:05 PM EST
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Originally Posted By Mariner82:

Actually, they let the Dukes drive up the price buying all the way to the top, aided by the lemmings that figured out the Dukes were trying to corner the market, driving price up even more.  When the real crop report came out indicating there would be no shortage of OJ, the supply/demand v. price curves worked as designed.  Supply went way up (over the traders' assumption), demand wouldn't change, price drops.
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That's what I fucking said.
Link Posted: 12/18/2016 9:27:56 PM EST
[Last Edit: 12/18/2016 9:39:30 PM EST by grady]
Link Posted: 12/18/2016 10:25:40 PM EST
Remember the old trading adage buy low, sell high? Well that's what happens in Trading Places, although, from the perspective of the good guys (Murphy & Akroyd), in the reverse order: they sell high and then buy (replace) low.

Our good guys steal the real orange crop report (predicting that the orange harvest will be good) and replace it with a fake (opposite) crop report (orange harvest will be bad).

The Dukes get the false report and, thinking that the orange crop will be bad (and thus the price of concentrated OJ will rise) start buying OJ futures contracts. Everyone else on the floor sees what the Dukes are doing and buy as well, further driving up the price of OJ futures.

Eventually our good guys start selling OJ futures contracts at some price (can't recall the strike); thinking the price will go even higher, everyone on the floor begins buying our heroes contracts.

Next the real (good) crop report is read and everyone realizes that they're screwed and start selling the contract they just bought. The price drops and eventually our good guys buy back all of their contracts at a much lower price.
Link Posted: 12/18/2016 10:35:52 PM EST
Meanwhile, Harambe was ravaging Clarence Beakes' corn hole all the live long day.
Link Posted: 12/18/2016 10:38:53 PM EST
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Originally Posted By KaiK:


That's what I fucking said.
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LOL, because that is exactly what you said. 
Link Posted: 12/18/2016 10:55:33 PM EST
I think I would have bought options on futures the day before at market price ($108 if memory serves). Those options would have been fairly cheap. I would then have sold futures at $140ish then exercised those options to cover those trades and pocketed about 30 ish per future.

I say that as someone that has only done option trading on equities, not futures.



Link Posted: 12/18/2016 11:00:28 PM EST
Nowadays it's probably all insider trading. Its RIGGED.
Link Posted: 12/19/2016 4:59:52 AM EST
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Originally Posted By BladedRonin:
I dunno, but JLC's tits were spectacular in that movie.
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Link Posted: 12/19/2016 5:21:25 AM EST
Link Posted: 12/19/2016 5:41:59 AM EST
Link Posted: 12/19/2016 5:52:29 AM EST
The were short selling.  
Link Posted: 12/19/2016 6:18:10 AM EST
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Originally Posted By BladedRonin:
I dunno, but JLC's tits were spectacular in that movie.
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Outstanding !
Link Posted: 12/19/2016 6:21:35 AM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By BladedRonin:
I dunno, but JLC's tits were spectacular in that movie.
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It's a man, baby.gif
Link Posted: 12/19/2016 6:45:29 AM EST
To clarify for the OP, you don't have to touch the commodity to trade futures contracts. You sell a contract. Someone else buys it. The contract says that at a later date, you will sell X amount of frozen orange juice to the other guy. It could be a month from now or three months from now. In order to cover your sale, you must have the contracts, or you must buy them from someone else before they're due. If you sell orange juice contracts for March, you're okay as long as you can buy orange juice contracts before March. If the price fell, you made a profit. If the price rose, you lose.

Winthorpe and Billy Ray sold short; they sold something they didn't have because they believed they could buy the contracts later at a lower price.

The Dukes tried to corner the market; they bought everything they could because they believed that the price would rise and therefore everyone who had to cover their own contracts would have to buy from them at the price they wanted.

The Hunt brothers tried this trick with silver in 1979. It didn't work. It was obvious from the amount of trading that they were manipulating the price and they got caught. Trading Places also inspired the "Eddie Murphy Rule" that makes it illegal to do what the Dukes and Winthorpe/Valentine did.

In the real world, Southwest Airlines traded fuel futures and did very well in 2007, when the price nearly doubled. Someone will eventually take delivery of the thing in the contract, but you can buy or sell the contracts until that happens.

http://www.nytimes.com/2007/11/28/business/worldbusiness/28iht-hedge.4.8517580.html
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