Menlo Investors Soar in National Competition

By Michael Brown '12

It's been 7 trading days for the Menlo Finance and Investments trading team, trading Gold and Oil futures contracts in the CME trading competition. The traders have hovered in the top 30 for most of the national competition. As of Thursday, Feb. 24, 2011, the traders were nearing the top 25 at number 26 in the country.

The traders say the timing of the Middle Eastern crises couldn't have been better, shooting NYMEX crude oil past $100 dollars a barrel this week and gold entering the $1400 an ounce range. The team says many will agree that this is a very volatile time. For example, during London Trading Hours, oil peaked at $103 dollars per barrel.

The next day, rumors surged that Libyan dictator Muammar Gaddafi had been killed, sending prices back down to $97 dollars at the close. This might not seem much, however, if you had bought ten futures contracts at $98.50 dollars a barrel (contracts are fixed at 100 barrels and sold at 103), which the traders did, you would see a profit of $45,000 dollars. Unless you got out, the next day your $45,000 dollar profit would turn into a $15,000 dollar loss with prices closing at $97 dollars.

The traders will analyze this weekend to get the best feel, and then place trades Sunday night at market opening for the home stretch of the first round of the competition. If the traders succeed in their analysis and trade executions, they will advance to the final rounds, representing Menlo with the other top 10% of the schools in the nation. Trade up, Menlo!

See Photos of the Investment Team

As of Thursday, Feb. 24, 2011, the traders were nearing the top 25 at number 26 in the CME trading competition.