The Soda Trade

Discussion in 'Stocks' started by eagle488, Oct 20, 2006.

  1. Here is another seasonal trade to consider. Soda is always most successful in the summer time. People tend to drink more soda during the summer then anytime of the year. Wall Street usually looks forward six months. In January, they start thinking about whats hot during the summer time.

    So I present to you Jones Soda. Since it has been traded, it meanders at the end of the year and then takes off from Jan to April. I believe the correct entry will be in December and then exit in late March.

    Since the volume is a little bit light, it seems logical to sneak in the entry over a period of days using limit orders trying to get in as low as possible. Conversely, a short position might be considered in May-June.

    If it starts trading over ten, then options might be offered and you might consider puts or calls depending upon where you are at.

    I have not finely tuned the data points here yet, just a consideration.
     
  2. my take.

    btw, lovely chart.