Show OPTION DEALING ON 52 an interesting interview Inter vOW on the subject HOW OPTION DEALS ARE MADE A place where money Is made or lost quicker than any other place an ogden office established 1 within the last few weeks there b has a 3 been established in this city an inetie institution U which when it attains the proportions it should attain will be one of the leading institutions of ogden this is the branch board of trade office established here by W D valentine aco co members of the chicago board of trad trade who have offices in the board of trade building in chicago and wh who being members of the board do thell their trading directly with the board abent bix IX weeks ago this firm pent a representative to ogden attracted by the central location of this city instructed to locate an office here if the outlook should ba favorable this representative looked over the of situation t nation and finding it to his liking appointed mr A E koch as the local manager of the company with offices in the basement of company the utah ah loana loan trust building since the first of the month when the office waso was paned opened mr koch Kocl bs abse bult up quite a trade and when the me method thod of trading becomes better an understood der stood by the business men of ogden the bue buol ineas will doubtless grow rap idly to the proportions usual in eastern citie ci thinking that the readers of THE tur STANDARD would be interested in knowing about the matter in detail det a il a reporter yesterday interviewed mr koch and ad obtained from him the facts about as follows it is well known that the prices of cereald and meat products for this country are governed by the quotations ions from trading doncon done on the cacagno board of trade and the prices on railroad stocks by dealings on the new now york stock exchange change from both these bodies mr koch receives telegraph quotations every hour in which they are in a salon W D valentine co are also members of the new york stock exchange and they furnish mr koch with all bis his quotations from chicago be he receives the hourly prices on oa wheat corn oats pork and lard and from new york the price prices on silver and juenger rio grande union pacific and burlington railroad stocks the method of dealing in these articles named is quite a study and the man who starts lh m to deal in options will very likely keep it up until he understands the ins and outa outs of the business pretty thoroughly and it is to a flae study too the method of dealing ii Is similar Z r i to option dealing in real estate with this exception the option deals in these articles can ba be closed at any moment the dealer de desires alres there bing boing always a market either long or short on the produce or stock exchange to illustrate suppose a man should decide to deal in wheat beat w the price of wheat is regulated to a gre great at extent by the amount of that cereal stored in chicago and other tributary warehouses by the years production in athis this and other countries and by the consequent demand of course outside of these influences the price is varied either up or down by speculative trading on the board I 1 ione one heavy grain dealer should corner the market that ie is bay buy in all the grain in sight eight be he could sell his grain at auy price he might name this was illustrated very viory clearly four years ago when Hu of chicago bought on option all the k known n 0 wn wheat in tha the country other dealers deals were compelled to have the grain and when they came to buy they found that old hutch owned it all ue he said to those dealers boye you can have the wheat but you must pay me my price and his price waa was 2 per bushel by this tra tie action he made something over all within sixt sixty Y d daye aye on a an n investment vestment in of less than t h an tZ smaller deals are operated on the same principle suppose mr jones should think th I 1 to himself now wheat Is worth 80 cents per and I 1 belicove that by 1 july it will ill bring 90 cente 11 acting I 1 upon this thought he buys bushels efrom from the board of trade putting Kup up a margin or option of 5 cents per bushel or as a guarantee that bo ho will buy the wheat and pay the full market price P rice in cash at the time or in the month that th at be he promises to pay it it in the meantime wheat advances 10 cents per bushel be cells sells his bushels and clears 1000 besides getting back the option money he put up this transact transaction loa ia is always possible because the board of trade practically guarantees a purchaser at any moment the bolder of the grain wishes to sell on the other band hand suppose that mr M r jones in looking over the markets some som morning sees that the price of wheat is 80 cent per bushel he ile knows there is is a large supply of wheat stored in the elevators of the country and knows that there is an extra heavy acreage of wheat sown for the next crop he ile thinks that brinly by july or possibly september wheat may sy be 10 or 15 cents cheaper II 11 hagoes a boea M to his broker and says 1 I will sell on the tile board of trade bushels of wheat at 80 cents the grain to ba be delivered in bay say depte september aber and puts up a guarantee of one cent or more per bushel lie he does this because be he believes stat between now and september be he can buy in that wheat at 65 or 70 cents per bashel and baliver it to tha the purchaser at tha the profit of 10 or 15 cents if it the market price drop down to sey enty cents he can buy it in the wheat and deliver it without any other cost making by the transaction 1000 profit broat so it goes A dealer can either buy or sell bell wheat oats corn pork railroad or mining stocks without ever seeing se eang or handling he the artiel articles the board 0 of f trade keeping them in bond so to speak for him the only money invested being the option money or margin which is put up ai as a guar guarantano antao that when hia his con contract cornea comes tin due 0 be he will meet most it of conre course if ho he does not want to meet it be he simply forfeits his tile margin or option the earns same as the man doea does who pays 1000 for f or a sixty day option on real estate and then fails to raise the balance of the purchase price there are many things about these trant transactions actions which cannot be explained 1 I 1 0 1 I 1 1 Y I 1 I 1 1 1 I 1 a 01 ii 1 4 A in a a bert article bat but which are interesting in the extreme when whoa fully investigated and explained |