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SKF Call Options Sold For 20.6% Profit In 23 hours!

SKF Call Options Sold For 20.6% Profit In 23 hours!

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.

SKF Call Options Sold For 20.6% Profit In 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.

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Reader Comments (2)

I bought SKF a bit late and then didn't like what I saw and closed mine out at about even. It looks like your timing is spot on. Great going.

I have been more pleased with a couple of covered call from 3/17. Buy C at 2.44 sell the APR 3.00 calls for 0.31 (I now have C at a net of 2.13). Buy GE at 9.32 and sell the APR 10.00 calls for 0.72 (I now have GE at a net of 8.60). Just before expiration I will see how things look and select a best case. As long as the premium remains this high, I will keep on selling calls and reducing my net cost for the stock. When the premium drops, I will look elsewhere. I am also looking at X for the same strategy.

March 27, 2009 | Unregistered CommenterBC

Hi BC,

Yes we are noticing the volatilty preimums increasing across the market, however we dont really want to hold anything in stocks like C.

However we are considering writing out of the money calls on our gold stock holdings.


March 27, 2009 | Unregistered CommenterGold Prices

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