Friday, January 28, 2011

Yesterday's trading alert results in almost 108% profit!

I think this one can go in the books as my most accurate and profitable trade ever! I once in awhile issue trading alerts (marked by a red rectangle box in the post). On Thursday I issued a trading alert regarding the VIX trading low and I quote myself

"I think it's the calm before the storm. In fact, there hasn't been a major storm in quite some time. One is bound to happen,"

And it sure did.. The option I mentioned in the alert rose to $2.70, a 107.69% increase to be precise...

Take a look at the last candle stick, it skyrocketed to 20.04.

This is the option quote price (for a 17.00 February 16 call) in the box below;

What happened?

I knew it right away when I logged on this morning and the Dow Jones was down over a hundred points (closed today at 11,823.70 -166.13 (-1.39%). Usually that means the VIX (panic index) has risen, and not just by a little bit, it was up 24%


Unrest in Egypt that may destabilize the middle east could be a reason investors are cautious to make investment decisions. Besides that, economic volatility news from around the world has been relatively quite, for me, it's a little unusual seeing the VIX below 20 points.

What's next?

In my opinion, monitoring the markets on Monday is a good idea to see what the next direction could be. If it stays down, or it looks there's no sign of improvement I don't recommend any trade at all at the moment.
However, if the stock market turns out to be a bargain bin (especially the S&P500, today was its biggest decline since August) focus on call options on for end of February ; SPY, QQQQ and the Diamond (DIA).

Still can't believe I made an stunning 107.69%+ profit! I'm going to celebrate this weekend!

1 comment:

  1. Forgot to mention, read yesterday's post for the trade setup..

    Happy weekend everyone!!



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