SK Option trader has yet again provided its subscribers with another winning trade of 43.46% in only 14 days!
On the 28th of July 2011, we told our subscribers that “We hereby signal to buy the GLD Jan-12/Oct-11 $170 Calendar Call Spread @ $2.37.” This was in accordance with our views that gold would go to $1800.
The rally in gold to $1800 was partly a result of the decrease in US real rates and the inverse relationship that this has with gold. “...most importantly we think US real rates will likely head significantly lower, sending gold to $1800+ within a matter of months.” Another factor was the flattening of the US yield curves and the increase in expectations of “...another round of monetary easing which will send gold prices past $1800."
After gold met our predictions and passed $1800 we felt that it was time to take profits off the table “We hereby signal to close our Long GLD Jan 21 ’12 / Oct 22 ’11 $170 Calendar Call Spread Trade, that we bought for $2.37 on the 18th July 2011 with 5% allocated, for $3.40”. This closed the position with gains of 43.46%, taking our model portfolio to overall gains of 389.58%.
As the graphs shows, SK OptionTrader has once again provided a wining trade for its subscribers, generating a profit of 43.46% in just 14 days!
A calendar spread is an options trade that is similar to buying simple calls but with a decreased price of entry. One simultaneously opens a long and a short option position on an asset with different expiration dates, but the same strike price. We explained to our subscribers that “…The idea of this trade is that selling the nearer dated call can cheapen the cost of buying the longer dated call, especially if the nearer dated call expired worthless. If gold prices rocket upwards faster than we anticipate then this trade should still be profitable since it benefits from an increase in implied volatility as well as an increase in gold prices…”
This type of trade can be opened by anyone with the ability to trade options, making our simple and straightforward service available to anyone that wishes to maximise the profitability of their options trading portfolio. In fact, if one were to have invested $1,000 in this trade they would have had gains of $434.60, paying for a six month subscription more twice over with a single trade.
In the past SK OptionTrader has significantly outperformed other vehicles for trading gold. The versatility of options trading allows us to limit our risk while having an aggressive trading stance. This has resulted in SK OptionTrader outperforming both the HUI and GLD more than 7 times over. We have also had more than double the performance of DGP, a double leveraged gold ETN. This versatility has continued to prove the benefits of options trading, with our latest trade closing profits of 43.46%.
Currently the SK OptionTrader model portfolio is up 389.58%, which means a $10,000 portfolio invested in accordance with SK OptionTrader signals would now be worth $48,958.28. On average position gains 42.47% in 45.33 days, which provides an annualized return of 119.37%. We currently have trades open which are showing gains of over 260%, and we see these positions as well as others in our portfolio gaining further! So now is the perfect time to open a subscription with SK OptionTrader and begin increasing the profitability of your options trading portfolio.
For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with Global AutoTrading and therefore auto trading is now available for SK OptionTrader signals
Subscribe for 6 months- $499
Subscribe for 12 months- $799