By SIMON CONSTABLE
It’s time to flee the trees. Lumber prices have rallied mainly for reasons that don’t seem sustainable for much longer.
Active-month futures contracts for random-length lumber were recently trading at $435 per 1,000 board feet, up nearly 30% from $337 early last spring. Investors holding lumber-related futures should take profits. Those wanting to profit from a likely retreat in prices should sell May-dated contracts. Alternatively, they could write out-of-the-money call options with the hope that they expire worthless. Read more here.
Photo by Óscar Salgado on Unsplash
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