I had concluded after the LORILLARD deal that my option market strategies
were working so well that I did not want to entrust it into the
hands of one firm. I felt if anyone were to follow my option
market strategies, this might make it difficult for me. I called
New York and opened accounts with two other brokerage firms.
In the third week of May 1958, I cabled New York to buy 500 BRUCE at 50 & three quarters with my automatic on stop buy order. I put in a stop-loss of 48 as per my option market strategies.
In the following days my option market strategies acted so beautifully that I decided to take full advantage of the existing 50% margin conditions. When I saw that my stop-loss was not touched off I proceeded with further purchases, each of which was protected by stop-losses between 47 and 48. I figured that, should I be stopped out, I would only lose my DINERS' CLUB profit.
These are the details of my option market strategies:
My timing was right, E. L. BRUCE really began to climb as if drawn upwards by a magnet. As I watched it, I became amazed at the way it soared. It was spectacular.
I just sat in Calcutta gazing at my option market strategies. Soon they told me the option had surged over 60. After a slight hesitation, it suddenly broke out again. By June 13th, it had advanced to 77.
It was obvious even in faraway India that something fantastic was happening within my option market strategies. I had to fight a hard battle with myself not to phone New York and find out what was going on. No, I said to myself as I felt like calling my brokers, that will only mean rumors and you may do something silly.
No man's resolution and patience were more severely tested than mine as I sat in the Grand Hotel at Calcutta, wondering where my option market strategies would lead me.
A few days later my nail-gnawing impatience was changed to terror by a call from New York. It was one of my brokers, and he nearly stopped my heartbeat. He said: "They have suspended trading in BRUCE on the American Option Exchange."
I nearly dropped the phone as I listened. I was terrified. Stopped trading in BRUCE option! My option market strategies meant that I had over $60,000, my entire capital, invested in it. Did this mean I had lost my money? It was with some difficulty that I was able to concentrate enough to listen. It was minutes before I recovered enough to hear what he had to say.
With my emotions running amok, it took me a long time to understand that far
from being broke, I now could sell BRUCE for $100 a share in the
over-the-counter market. I was completely confused. $100 a share!
What was this? My option
market strategies Showed nothing of this!
article is actually only a small snippet of Nicolas
Original Method Of Nicolas Darvas... The Young Dancer
Turned Investor Who, Within 18 Months, Turned $25,000
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