On the 03/24/09 at precisely 03:58:26 PM EDT we purchased a short position on the financials, via buying April 2009 $100.00 call options on ProShares UltraShort Financials (SKF) for $16.49, the leveraged inverse financial ETF. At 03:02:02 PM EDT in the next day of trading, we sold these contracts for $19.90, making a profit of 20.06% in just 23 hours.
We are very pleased indeed with how this trade worked out, this truly was an exceptional return in such a short space of time.
The chart above shows us closing the position pretty much at the peak of the day, just minutes before the market bottomed. We didn’t know that this was the “top” in SKF for the day, or that the financials would begin to rally minutes after we closed, we simply saw a profit of 20% on the table and decided to take it. When the market offers us such a generous return, we think it is prudent to take that money off the table and bag the profit, so this is exactly what we did.
We understand that these types of trades are not for everyone, and these trading signals are hard to follow unless you get immediate notification of trades being placed/closed.
This is why we have started our premium trading service, OPTIONTRADER where subscribers receives trading signals via email as soon as we trade, as well as a special monthly newsletter. To read more about OPTIONTRADER, or to sign up now, please click here. We are beginning to post signals to subscribers next week so sign up now to ensure that you are on board in time.
These are fast moving markets with tremendous opportunities, as this trade demonstrates.
For our FREE newsletters regarding gold stocks, silver stocks and uranium stocks, please click on the links.