Last night had you read the Option Millionaires Game Plan you would have been better prepared for today. What did I think today would bring? This is a snippet from last night:
"Tomorrow… what do we see for tomorrow? I think this bounce continues. I am a big bear. I hate the bulls. I think we are screwed long term. But I also think the Central Banks can ill afford to let this house of cards collapse right here. Futures are up .35% as I write. I think EUROPE will open higher and that will only bolster stock futures.
We will look for flat or beaten down names like we did today."
Once again the bears needed the vasoline. Today was almost a perfect inverse of Tuesday's 200 pt down day. We started off slow, but launched higher and didn't stop until we had soared some 181 pts on the DOW.
It was a stellar day in the Option Millionaires chat room.
I entered two positions early on and posted both my entries and exits in the chat room for all to see.
With AMZN at $185.85 I bought 6 $190 calls at $.60
With AAPL at $621 and change I bought 10 of the $640 calls at $.68. This is a shot I took of these positions a few minutes after I bought them. I sold out about 25 minutes later on each with an over 150% gain on each position.
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Those AMZN $190 calls hit $3.25 from my $.60 entry.
Those AAPL $640 calls hit $1.62 from my .68 entry.
That was just the start of the fun as I had many call positions from earlier this week. I purchased the FCX $36 calls for $.50 near the end of the day yesterday, which I also posted in the chat room. They hit a high of $2.04 today.
There was some groaning when I posted my purchase of GDX $47 calls yesterday in the early afternoon as it did not react nicely to call holders. My $.50 entry looked quite better later today when GDX hit $1.35. Trust me... I am not perfect and GDX looked like shit after I bought those calls, but I don't buy something if I think I am going to lose money on it.
I posted all week about SLV, even featuring Silver on the blog Monday night. The $31 calls were the play, and I was positioned perfectly for a move higher. Those SLV calls came through posting a high of $.66. These were priced as low as $.14 yesterday and because I trade with money I know I may lose (due to my out of the money option strategy) I don't panic. This paid off to perfection today as I also hit paydirt with my CAT calls.
I was buying CAT $105 calls on Tuesday and watched my trade turn south in a hurry. CAT fell under $100 on Wednesday and my $.60 - $.80 CAT calls fell to the $.10's. Today my patience paid off as those calls closed at $1.90. Call it luck.... but when you know what your up against in this market its a lot easier to hold onto an option. It also helps to be confident in yourself, the way you trade, and knowing that you have a strategy heading into the day.
For good measure I posted the MOS $50 calls yesterday at $.52 - $.60 they hit over $1.41 today.
Yesterday FSLR, today.... everything else. I know I am not the only one who had another wonderful day. A wonderful day of 1-2% in the stock market is really a glorious day for us option traders.
LNKD was up over 8% at times and a few in the chat room banked some serious coin there. It was an easy day today if you bought or had calls. If you were swayed by the media, analysts, friends, traders calling for further declines this week, you are following the wrong people. Since your reading this now I know you've finally found the right place.