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Sunday
Jan292012

SK OptionTrader Subscribers Enjoy 71.58% Profits in 43 Days

As 2012 begins, SK OptionTrader subscribers can enjoy banking a profit of 71.58% on our recently closed GLD $155/$150 vertical put spread. For those of you unfamiliar, a vertical put spread is a strategy put in place by buying a put at a lower strike and selling a put at a higher strike, both for the same month. This results in receiving our net credit of $2.15.

After gold prices became heavily oversold in December we saw a buying opportunity and opened this position on the 12th December 2011. We signalled to our subscribers to “...sell GLD Feb 18 '12 $155/$150 vertical put spreads at $2.15 with 10% of our capital allocated to this trade”.

As gold prices recovered the profits on this position grew, so on 27th January 2012 our subscribers received this, “We hereby signal to close our short GLD Feb 18 '12 $155/$150 vertical put spread positions at $0.11”, meaning that we had banked a 71.58% gain in just 46 days.

That means that if you had invested $1000 in this trade, you would have paid for a 6 month subscription more than 3 times over!

As you can see from the above graph, gold rose around 10% over the same time period that this vertical put spread made over 70%. This kind of performance demonstrates that options are one of the best vehicles for accessing the gold market.
Our options trade outperformed gold by 7 times!

We are happy to have banked profits of 71.58% and 33.97% by closing our short positions on the GLD Feb-12 $155/$150 vertical put spread. We placed these trades when gold was just above and just under $1600, in the midst of a correction which had many calling an end to the gold bull market. We did not think the bull market in gold was over and therefore placed these trades. In our opinion we think we were rewarded handsomely for essentially just speculating that gold would be trading around its 200dma in early 2012. We took on what we viewed as a limited, low-medium risk trade in return for a reward that we would more consider appropriate for a medium-high risk trade. As always we look for trades with attractive risk-reward dynamics and this was a textbook example of the type of trade we look for.

Currently the SK OptionTrader model portfolio is up 446.55%, which means a $10000 portfolio invested in accordance with SK OptionTrader signals would now be worth $54,655.11. On average our positions gain 36.68% in 50.48 days, which provides an annualized return of 98.38%. If you would like to see a full record of our previous trades, feel free to check out our trading record. With exciting new opportunities like this arising, 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 eOption, therefore auto trading is now available for SK OptionTrader signals.

 

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