A great deal can happen in the summer months, when the fevers of July catch us unaware, sending us reeling dreamlike through the sweltering vapors the day.
We missed you guys.
But we’re back.
And the truth is too bizarre to be believed… And too long to explain in one article, But all is well now and in order… and we will be writing a full report on the mysterious events that left us incommunicado for June and July in the months to come. So stay tuned…
Back to Business
That said, a great deal has transpired in the markets, and we’re now duty-bound to bring you up to date.
First up, we have seven trades that either closed with the last options expiry or that require your attention today.
We start with this –
Our first trade under the scope is our March 23rd initiative from a letter called Follow the Leader. There, we urged you to buy the November 85 CALL on Facebook and sell the November 70 PUT. Total debit on the trade was $4.76 per pair.
And what happened?
Well, before we get to that, let’s just remind you that we were so darn excited about the trade that the very next week we did something bizarre and truly extraordinary. As we wrote on March 30th –
We feel it safe to report that we’ve never in all our year’s done what we’re about to do today… we’re going to mimic exactly a trade that we set last week that looks even better now as we go to press. Facebook backed off and [has since] returned to roughly the same level it was when we initially set the trade. And we say the stock is now stronger for the pullback.
We used the exact same strikes and expiries and put it on again, but this time the trade was marginally cheaper, costing us just $4.64 the second time round.
And how did it turn out?
Like a blood-skull pitbull rodeo!
Er… we cleaned up.
The November 85 CALLs are now fetching $12.60 and the November 70 PUTs go for just $0.69. Sell off both CALLs and buy back both PUTs and you’re sitting on $23.82 for $9.40 expended. That’s 153% return in four and a half months.
And that ain’t chicken feed.
Our next trade was from a letter called Gold Wins, Gold Loses, delivered to you on May 18th. At that time, we urged you to sell GLD June 121 CALLs for $0.80. And everything worked out splendidly. The options expired worthless, and we pocketed a 100% gain!
A week later – we recommended you sell four (4) FB June 26th 74.50 PUTs for $0.36 each, for a total credit of $1.44. And there, too, things concluded in our favor. The options expired worthless for a full 100% take.
Trippin’! Bloody trippin’!
Keep those doggies rolling!
On June 15th we recommended buying a deep-in-the-money WETF January 10 CALL, then trading for $12.60, and selling the July 20 PUT for $0.60 and the September 20 PUT for $1.30. Total debit on the trade was $10.70, and here’s the way it looks today –
The January 10 CALLs are now trading at $14.80, the July PUTs expired worthless and the September PUTs are trading for $0.28. Sell the CALL, buy back then PUT and you have $14.52 on $10.70 down, or 36% in two months.
But wait, you say. Why not leave the September PUTs to expire? After all, the stock is now trading over $25, and there’s little chance of a 20% decline over the next six weeks.
And we’d have to agree. But there’s always that chance. And even if we did wait it out, the possibility of a sideways to lower drift could eat significantly into the value of our long CALL.
Take a look here –
After an unbelievable three month, 40% rise, we could well see some profit-taking here and it would be nothing short of foolish on our part to let that occur.
We’re jumping, and we think you should, too.
Great Work, Huey! Keep it up, bro!
We move now to July 15th, and a letter called Don’t Get Married to a Chinese Bear. In that missive we recommended you buy the FXI October 41 PUTs for $1.77 and sell the FB October 82.50 PUTs for $1.70. Total debit on the trade was $0.07 per pair traded, and here’s how it ended up –
The FXI PUTs are now fetching $2.08 and the FB PUTS $1.12. Call it another smash hit.
Sell the FXIs and buy back the FBs and you have $1.05 on $0.07 down. That’s a super-phenomenal 1500% in less than a month!
And it doesn’t end there.
On July 22nd in a letter called The Gold Sale is not Over, we urged you to take the following action – sell four (4) GLD August 28th 110 CALLs for $0.50 each and buy the GLD December 95 PUT for $1.96, for a total credit of $0.04. Today, the 110 CALLs are going for $0.08 each and the 95 PUT is worth $1.39. Buy back the former and sell the latter and you take home $1.11 (1.07 + 0.04) on absolutely nothing laid out.
That’s a billion percent, Huey! You’re a Genius!
We owe it all to our dear old mama.
Wall Street Elite recommends you close out ALL five open trades specified above, per the directions given.
And keep cool.
With kind regards,
Hugh L. O’Haynew, Senior Analyst