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Thursday
Aug182011

SK OptionTrader Now Offers Autotrading With eOption

Due to number of subscriber requests that we have received, we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with eOption and therefore autotrading via eOption is now available for SK OptionTrader signals.


eOption

This partnership with eOption is in addition to our autotrading partnership with Global Auto Trading.


To sign up for autotrading of SK OptionTrader’s signals please contact eOption.


Regarding autotrading, we would like to make a few things clear:


eOption is a separate entity from SK Options Trading.


All queries regarding autotrading with eOption should be directed to eOption and not to SK Options Trading.


Autotrading requires a separate fee from the SK OptionTrader subscription fee (payable to eOption).


One must be a subscriber to SK OptionTrader before being able to trade our signals.


The SK OptionTrader subscription cost is not included in any eOption fees.


We strongly suggest that one has a substantial understanding of options trading and the way our service operates before opting to have our trading signals autotraded by eOption.


Our SK OptionTrader model portfolio is up 389.58% since inception and our average return per trade is 42.47%, including losses. In total we have closed 84 trading recommendations with 81 closed at a profit. A one year subscription costs just $349 and a six month subscription costs $199, just $1.10 per day. Autotrading is now available with SK OptionTrader, made possible by eOption and Global Autotrading. For more information or to sign up, please visit www.skoptionstrading.com



sk chart model portfolio 17 aug 2011.JPG

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sk chart graph 17 aug 2011.JPG
Tuesday
Aug162011

Massive 197.14% Gains Banked After Just 24 Days

Once again SK OptionTrader has provided its subscribers with another profitable trading signal, this time generating gains of 197.14% in a little over 3 weeks. This has boosted our model portfolio to total gains of 389.58% since inception.

On the 18th of July 2011, we told our subscribers that “We hereby signal to buy the GLD Mar-12 $180 Calls @ $3.50. This trade involves simply buying the GLD March 17th 2012 calls for $3.50. We are allocating 5% of our capital to this trade.”

gld-mar-12-180-calls.png

As you can see from the above graph, SK OptionTrader has sold within 10% of the current peak, giving the trade its massive gains of 197.14%.

The decrease in US real rates and the inverse relationship that this has with gold was a contributing factor in the recent rally to $1800 “...most importantly we think US real rates will likely head significantly lower, sending gold to $1800+ within a matter of months.” Another factor causing the increase to over $1800 was the flattening of the US yield curves and the increase in expectations of “...another round of monetary easing which will send gold prices past $1800...”

Once gold rallied to over $1800 and met our predictions, we felt that it was time to take some profits off the table. We signalled to our subscribers to “...close our long position in GLD Mar 17 ’12 $180 Calls at $10.40” on the 11th of August, resulting in profits of 197.14% in just over 3 weeks.

Buying a call option is a facility available to anyone that has the ability to trade stock options. This makes our service simple, straightforward and easy for anyone to follow, meaning that you could begin to maximise the profits of your options trading portfolio by signing up now. In fact, if you had invested $1000 in this trade you would have made $1971.40, which would have paid for your 6 month subscription nearly 10 times over!

Since our first trade just over 2 years ago SK OptionTrader has been one of the best vehicles for trading the gold market. This is due to the versatility of options and the vast number of opportunities that are provided by their use. Versatility allows us to take on an aggressive trading stance whilst our risk remains limited. Our use of options has resulted in SK OptionTrader surpassing GLD and the HUI more than 7 times over, with gains of more than twice the performance of DGP, a double leveraged gold ETN. Our use of options has continued to benefit our subscribers, with our latest trade closing profits of 197.14%.

Currently the SK OptionTrader model portfolio is up 389.58%, which means a $10000 portfolio invested in accordance with SK OptionTrader signals would now be worth $48,958.28. On average a position gains 42.47% in 45.33 days, which provides an annualized return of 119.37%. We currently have trades open which are showing gains of over 260%, and we see these positions as well as others in our portfolio gaining further!

So now is the perfect time to open a subscription with SK OptionTrader and begin increasing the profitability of your trading portfolio.

For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with Global AutoTrading and therefore auto trading is now available for SK OptionTrader signals

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Tuesday
Aug162011

SK OptionTrader Generates A Profit Of 43.46% In Just 14 days

SK Option trader has yet again provided its subscribers with another winning trade of 43.46% in only 14 days!

On the 28th of July 2011, we told our subscribers that “We hereby signal to buy the GLD Jan-12/Oct-11 $170 Calendar Call Spread @ $2.37.” This was in accordance with our views that gold would go to $1800.

The rally in gold to $1800 was partly a result of the decrease in US real rates and the inverse relationship that this has with gold. “...most importantly we think US real rates will likely head significantly lower, sending gold to $1800+ within a matter of months.” Another factor was the flattening of the US yield curves and the increase in expectations of “...another round of monetary easing which will send gold prices past $1800."

After gold met our predictions and passed $1800 we felt that it was time to take profits off the table “We hereby signal to close our Long GLD Jan 21 ’12 / Oct 22 ’11 $170 Calendar Call Spread Trade, that we bought for $2.37 on the 18th July 2011 with 5% allocated, for $3.40”. This closed the position with gains of 43.46%, taking our model portfolio to overall gains of 389.58%.

calendar-call-170-octjan.png

As the graphs shows, SK OptionTrader has once again provided a wining trade for its subscribers, generating a profit of 43.46% in just 14 days!

A calendar spread is an options trade that is similar to buying simple calls but with a decreased price of entry. One simultaneously opens a long and a short option position on an asset with different expiration dates, but the same strike price. We explained to our subscribers that “…The idea of this trade is that selling the nearer dated call can cheapen the cost of buying the longer dated call, especially if the nearer dated call expired worthless. If gold prices rocket upwards faster than we anticipate then this trade should still be profitable since it benefits from an increase in implied volatility as well as an increase in gold prices…

This type of trade can be opened by anyone with the ability to trade options, making our simple and straightforward service available to anyone that wishes to maximise the profitability of their options trading portfolio. In fact, if one were to have invested $1,000 in this trade they would have had gains of $434.60, paying for a six month subscription more twice over with a single trade.

In the past SK OptionTrader has significantly outperformed other vehicles for trading gold. The versatility of options trading allows us to limit our risk while having an aggressive trading stance. This has resulted in SK OptionTrader outperforming both the HUI and GLD more than 7 times over. We have also had more than double the performance of DGP, a double leveraged gold ETN. This versatility has continued to prove the benefits of options trading, with our latest trade closing profits of 43.46%.

Currently the SK OptionTrader model portfolio is up 389.58%, which means a $10,000 portfolio invested in accordance with SK OptionTrader signals would now be worth $48,958.28. On average position gains 42.47% in 45.33 days, which provides an annualized return of 119.37%. We currently have trades open which are showing gains of over 260%, and we see these positions as well as others in our portfolio gaining further! So now is the perfect time to open a subscription with SK OptionTrader and begin increasing the profitability of your options trading portfolio.

For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with Global AutoTrading and therefore auto trading is now available for SK OptionTrader signals

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Monday
Aug152011

The Market Dynamics That Sent Gold Past $1800

Given that gold has hit our target of $1800 we feel it is appropriate to review our outlook on the gold market, the state of key factors that influence gold prices and possible trading strategies going forward.

Gold TA 120811

These past few weeks have affirmed our view that gold stocks are not a suitable vehicle for trading or investing in gold at the moment. We have held this view for a few years now and see no reason to change it, regardless of how undervalued mining stocks supposedly are. The chart below shows the performance of a pair trade which is short the HUI gold miners index and long GLD for 2011.


Short HUI Long GLD 2011 Pair Trade Return 120811


This shows the drastic underperformance of mining stocks. Of course there may be some individual gems in the sector that have done very well, but overall the sector continues to perform poorly. The fact that one could have made nearly 20% this year by being short mining stocks and long gold demonstrates the magnitude of this underperformance. If miners are indeed the best vehicle for trading or investing in gold, then one should be able to make a profit by being short gold and long the mining stocks, since their gains should outperform gold. However in reality they aren’t outperforming, in fact they aren’t even keeping pace, and therefore we will continue to avoid them as a trading vehicle.

A fair amount of this underperformance can be explained by the fact that gold mining stocks are still stocks; they are not gold. In a flight to safety investors by gold, not mining stocks and when the stock market tumbles, gold mining stocks will be sold off too. This has been evident in recent weeks and in fact throughout 2011 the HUI has only exhibited a 0.2 correlation to gold prices. We continue to think that options are the best vehicle for this environment. Options on GLD can be traded just like any other stock option.


SPX TNX 120811

The above chart shows what a turbulent month August has been so far, with a massive risk off sentiment driving money from stocks to treasuries and other safe havens. The S&P 500 has lost 9%, copper is down 11%, gold is up 8% and there have been similar violent moves in other markets. However our SK OptionTrader model portfolio has fared well despite this turmoil, showing a gain of 16.5% for August. On days when other markets were plummeting, such as August 10th, our portfolio was making strong gains.

Daily Returns 10 Aug 2011

As our regular readers will know, we view US interest rates as the key determinant of gold prices in the medium to long term, with US real rates being particularly important. We view gold as a currency and since currencies are tightly linked with interest rates, we have a large focus on the US and global interest rate market.

Gold prices have an inverse relationship with US real rates and our view has been that a decline in US real rates would send gold past $1800 (Please see our article on July 18th entitled “Decline In US Real Rates To Send Gold Past $1800”).

This scenario has indeed now come to pass, with US real rates substantially lower and gold prices significantly higher. Whilst we think that gold prices are vulnerable to a correction in the short term, over the longer term the US interest rate environment still points to much higher gold prices. Even with US real rates at current levels, $2000 gold is not an unrealistic target in the next few months. Further declines in US real rates would present an upside risk to that target.

10y TIPS vs Gold YTD 2011 120811

It is all very well to say that lower real interest rates send gold prices higher, but this hypothesis can produce little in the way of actionable information unless we have a view on where US interest rates are going in the future.

Our view was that a flattening of the US yield curve, which we viewed as a symptom of economic weakness, would prompt further easing by the Federal Reserve.

For those readers who may be unfamiliar with how the yield curve works, we will provide a brief explanation. Bonds of different maturities have different yields. By plotting these yields against their maturities we can build a yield curve. The yield curve becomes steeper if longer term interest rates increase relative to shorter term interest rates. The yield curve becomes flatter if longer term interest rates decrease relative to shorter term interest rates. One way to measure the steepness of the yield curve is to look at the difference between the yields at two different points on the curve. For example one may look at the difference between the yields on 2 year Treasuries compared to the yield on 5 year Treasuries. Such a comparison will often be referred to as “2s5s” and is measured in basis points (bps) by subtracting the shorter term yield from the longer term yield. So if one says “2s5s are trading at +225” this means that the yield on 5 year bonds is 2.25% higher than the yield on 2 year bonds. If 2s5s go from +225 to +275 then the yield curve has steepened between those two maturities. If 2s5s go from +225 to +175 then the yield curve has flattened between those two maturities.

There is no one exact interpretation of what causes shifts in the yield curve. The curve changes with changes in inflationary expectations, default risk, equity markets, the outlook for future interest rates as well as other factors.

However in our opinion the run of poor US economic data had been causing the curve to flatten. A weaker economy means that interest rates will probably be held lower for longer, therefore longer term interest rates fall relative to shorter term interest rates, causing a flattening of the curve.

Yield Curve Still Flattening 120811

In our article on August 3rd entitled “US Yield Curve Flattening To Prompt Fed Easing” we commented that we did not think the Fed would immediately jump to QE3, but other forms of monetary easing that they would implement would still have the same effect bullish implications for gold prices:

"First we would expect to see a change in the language of the Fed statement, a change that implies that interest rates will remain lower for longer. We then could see the Fed setting a cap on longer term interest rates, such as the 2 year or 5 year rate on Treasuries. All these forms of monetary easing are massively bullish for gold prices."

The scenario unfolded with the latest Fed statement, where Bernanke pledged to keep interest rates low until mid 2013, effectively capping the 2 year rate on Treasuries. This also decreased interest rates at all maturities and sent US real rates into a nosedive, whilst gold skyrocketed.

Moving on, from a psychological standpoint we are beginning to see signs that warrant caution going forward. We are not saying that gold is in a bubble, we are still very bullish on gold prices over the medium and longer term, but we are approaching bubble territory. Just last week I was asked about how to invest in gold by a lawyer and a snowboarding instructor on separate occasions. This follows overhearing a conversation about what a great investment gold is between a florist and an architect, including an eye popping quote that “you will always make money” investing in gold. We point out the respective professions of these people simply to demonstrate that those talking about gold are not in the investment industry, and normally never mention anything to do with the financial markets whatsoever. Combining this with gold being increasingly mentioned on CNBC and advertisements on TV here in New Zealand promoting gold investment has our alarm bells ringing. The TV advertisement promotes buying gold bullion as a safe investment with a general upward trend over the last ten years. This is eerily similar to the talk regarding real estate when the property market was in full swing.

However the key difference is that although gold is certainly being talked about more, those talking aren’t yet putting their money where their mouth is. Although the amount that gold is talked about may be causing us some concern, the degree to which it is owned is not. When those people mentioned above are all talking about how much they are making from their gold investments, then gold will be in a bubble and it will be time to sell. At present, this is merely a warning shot across the bow of this bull market and therefore is a situation that we are monitoring closely.

Looking to the composition of those investors that were flocking to gold in recent weeks, we think they can be classified into two main types. Firstly there were those looking for a safe haven, a hedge against the turmoil that was gripping other markets. In human psychology, nothing sparks fear like uncertainty. One only has to watch a classic horror movie to see evidence of this. The monster doesn’t create as much fear as the shadow that the monster forms, when we are unsure what the monster is. Markets were not sure of anything in recent weeks and this uncertainty is what was driving fear and creating carnage across the financial markets. Since gold does not have a central bank or government backing it, there is no uncertainty over what will happen to this currency. No central bank can cut its interest rate and no government can print gold to dump on the market, therefore gold was a safe place to be.

Secondly there were the speculators, who were not looking to hedge any other positions, but merely there to make a profit. A symptom of this speculative buying was evident in the gold options market. One of the more remarkable developments of the last week from our viewpoint was not the increase in volatility, but the change that we saw in the volatility curve for gold. This curve plots the volatility implied from the options market at different dates in the future. As the chart below shows (courtesy of FMX Connect), not only did the vol curve rise, it was actually flipped on its head. The term structure of volatility went into backwardation, a very, very rare occurrence in the gold options market.

GC Vol Curve 080811

This was a result of a dramatic spike in the demand for speculative calls near term, with a significant portion coming from retail investors. This backwardation was never likely to last however, since there was an arbitrage opportunity to sell near term volatility and buy longer term volatility with the aim of benefiting from a normalisation of the term structure. However with the chaos taking place in all areas of the markets, traders did not quite have the temperament to fight the backwardation in volatility right away. As of the close on Friday the curve has now flattened and we appear to be returning to a more normal situation. Our subscribers were fortunate enough to be able to capitalize on this situation via our options trading recommendations. For more information on how to subscribe and to view our full trading record, please visit www.skoptionstrading.com

In conclusion there is still significant upside in the medium term for gold prices. We expect gold prices to move significantly higher over coming months, even if currently the yellow metal looks overextended and vulnerable to a correction in the short term. We still believe that gold stocks are not a suitable trading or investment vehicle for gaining exposure to rising gold prices. We continue to think that options trading is the best way to profit in this market environment, simply because trading options allows one to tailor trades to match one’s market view. Futures, ETF’s and stocks generally force the trader to simply bet up or down, whereas options are far more versatile and we think today’s market environment demands versatility more than ever.

The SK OptionTrader model portfolio is up 389.58% since inception, boasting an annualized return of 119.37%. We have banked an average return of 42.47% per trade including losses, over our 84 closed trades. 81 trades were closed at a profit, 3 at a loss, a success rate of 96.4%. On average our trades remain open for 45.33 days.

Our service provides clear trading signals that are simple to understand and sent during the trading session at prices that are real in the market at the time of sending. A suggested capital allocation accompanies each trade and a model portfolio is produced for subscribers. We also provide regular market updates that outline our view on the market and give advanced notice of our trading strategy going forward.


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Return on SKOT 140811

Portfolio chart 140811
Saturday
Aug132011

Too Much of a Good Thing Is Not a Good Thing

By David Galland, Managing Director Casey Research

I am beginning to feel a bit like one of the French unfortunates stumbling through the fog in the Ardennes, circa 1914. Except that, instead of Germans full of deadly intent coming at me in the gloomy forest, it is a flock of black swans.

As it was for the French in the Ardennes, the number of problems – then Germans, now black swans – is becoming overwhelming.

Consider just a little of what we as investors, and as individuals looking forward to retirement in accommodations more commodious than a shipping box, must contend with:

The Euro-Stone. Despite all the bailouts and bluster flying about Europe, the yields in the wounded “piiglets” of Greece, Portugal, etc. have failed to soften to more tolerable levels. Worse, yields in the fatter PIIGS of Spain and Italy are hardening. This is of no small import to the German and French banks, which together are owed something like US$2 trillion by the porkers. At this point, it is becoming clear that the eurozone’s systematic flaws doom the euro to continue trending down until it ultimately takes its place in the pantheon of failed monies.

The Yen Has Lost Its Zen. This week the Japanese government again began intervening in currency markets because, remarkably, the yen has been pushed to highs against the dollar. This in a nation with a government debt-to-GDP ratio that is better than twice the also horrible ratio sported by these United States.

That ratio ensures that Japan’s long struggles will continue, burdened as it also is with the aftermath of the deadly tsunamis and the ongoing drama at Fukushima. Adding to its woes are the commercial challenges it faces from aggressive neighbors, and maybe worst of all, the demographic glue trap it is stuck in, with fewer and fewer young to pick up the social costs of the old. Toss in the waterfall plunge in Japan’s much-vaunted savings rate – formerly a big prop keeping Japanese interest rates down – and the picture for Japan is anything but tranquil.

China’s Crucible. There are many reasons for being optimistic about the outlook for China, including a large and hard-working populace. But there is one overriding reason to expect a big bump in the path to China’s emergence as the world’s reigning economic powerhouse.

Simply, it’s a capitalistic country with a communist problem.

Now, in the same way that some people believe in leprechauns or any of dozens of other magical beings, some people believe that an economy can be successfully commanded just as a captain commands the crew of a Chinese junk cruising along the coast. It’s a fantasy.

While the comrades in charge have done quite well – largely by getting out of the way of natural human actions – they are fast reaching the limits of their ability to navigate the shoals. As I don’t need to tell you, China is a massive country, with hundreds of millions of people capable of every manner of human strengths and frailties. But if they share one interest, it is in a job that allows them to keep their rice bowls full and a roof over their heads. Said jobs don’t come from government dictate – at least not on a sustainable basis – but rather by the messy process of free-wheeling commerce… and the more free-wheeling, the better.

In the July edition of The Casey Report, guest contributor James Quinn discusses the very real challenges facing China, not the least of which is that in the latest reporting period, official Chinese inflation popped up to 6.4%. Even more concerning was a 14% rise in the price of food.

Scrambling to keep employment high while also keeping inflation low, the Chinese government is throwing all sorts of ingredients into the mix – building ghost cities, raising interest rates, stockpiling commodities, clamping down on dissent, hacking everyone – but in the end, the irrefutable laws of economics must prevail. And so the Chinese government will have to atone for the massive inflation it unleashed in 2008, and for the equally disruptive misallocations of capital that are the hallmark of command economies.

While the blowup in China will wreak havoc in world markets, including many commodities, a bright side for gold investors is that the country’s rising inflation should help keep the wind in the sails of monetary metal. It’s no coincidence that the World Gold Council’s latest data show investment demand for gold in China more than doubling in the first quarter of this year.

Uncle Scam. Then there is the United States. Casey Research readers of any duration know the fundamental setup… The political avarice that dominates both parties… The fear and greed of John Q. Public and his steady demands that the government do more… The scam being run by the Treasury and the Fed to provide the funny money to keep the government running… The cynical attempts by certain politicians to stoke a class war… The cellars full of toxic paper at the nation’s financial institutions… The outright corruption and deceit of the various government agencies as they twist and torture the data to fool the people into supporting them in their scams.

But there’s a growing problem: An increasing number of people and institutions are coming to understand just how intractable the problems are. This has resulted in a steady move into tangible assets – gold, especially – that are not the obligation of any government. And it’s not just individuals and money managers moving into gold, but central banks as well. That is an absolute sea change from the situation even a few years ago.

Meanwhile, with the Treasury unable to borrow since May, a backlog in government financing needs has built up. Which begs the question: With the Fed standing aside (for the moment), where is the government going to find all the buyers for the many billions of dollars worth of Treasuries it needs to flog in order to keep the scam going?

If I were a conspiracy theorist, I might look at the sell-off in equities this week, triggered as it was by nothing specific, and see a gloved hand operating behind the curtain. After all, nothing like a good old-fashioned stampede out of equities to send billions chasing after “safe” Treasuries… which has been exactly the case this week.

Regardless, with the crossroads for hard choices now behind us, the global economy finds itself at the top of a long hill… with no brakes.

From here on, it will increasingly be every nation for itself – meaning a return to competitive currency devaluations and, in time, exchange and even trade controls.

And we will see a return of the Fed to the markets. On that topic, I will once again trot out a chart from an article by Bud Conrad that ran in The Casey Report a couple of years back.

I do so because it shows what I think is a very strong corollary between what occurred in Japan after its financial bubble burst and what is now going on here in the U.S. (and elsewhere). As you can see, as a direct result of the Japanese central bank engaging in quantitative easing, the Japanese stock market bounced back strongly. But then, when the quantitative easing stopped, the market quickly gave back all its gains.



casey a 13 aug 2011.JPG

If I had the time and the resources to whip up a chart overlaying the quantitative easing here in the U.S. of late versus the equity markets, I would. But I don’t, and so will delve into that fount of all information – the Internet – and grab a chart constructed by someone else (in this case, Doug Oest, managing partner of Marquette Associates – thanks, Doug!)

As one can readily see, the Japanese experience is indeed a corollary to what’s happened here, with QE pushing the stock market higher. Conversely, until the Fed comes back in, equities could be in for a rough ride. Likewise, when the Fed returns with the next round of QE, stocks could put in a very nice rally.



casey b 13 aug 2011.JPG

Some conclusions:

The Fed will have to roll out another round of quantitative easing. And it will likely have to once again provide swap lines to the European central banks as it did in 2008 – though this time around, a belligerent Congress is watching the Fed’s every move, so it may not be able to move as quickly as it would have otherwise. In the end, however, given there is less than nothing being done on the front of fiscal policy, it will fall to the Fed to once again ride to the rescue. But it will do so on a lame horse.

A delay by the Fed to act could help the Treasury, at least temporarily. Per above, the U.S. government has to move a boatload of paper by the end of this year. If it wants to avoid the dire consequences of having to pay out higher yields in order to attract sufficient buying, it will have to find a lot of demand in a hurry. Should the Fed sit on its hands a bit longer, especially in the face of the escalating euro crisis, the resulting turmoil in global equity markets could provide the necessary demand to clean up the backlog and keep the U.S. government operating.
(In July’s Casey Report, Bud Conrad dissects the situation and comes to some startling conclusions… and an emerging profit opportunity.)


The return of the Fed may signal the beginning of the end. In the face of broad weakness in the global economy and in most commodities, the fact that gold has held up so well is a clear indication that there has been an intrinsic change in the gold market. Barbarous relic no more, it has clearly been returned to its longstanding role as sound money – unique and increasingly valued when compared to the fiat competition.

This role will only become more crucial as the world’s desperate nation-states fire their currency cannons in the war to remain viable. The Fed’s return to Treasury markets will be, in the rear-view mirror of future history, seen to be a seminal event – the beginning of the end of the current fiat monetary system.

Simply put, too much of a good thing is too much of a good thing. And make no mistake, the decades of operating under a fiat monetary system have been a very good thing for the political classes and their pandering cronies.

Those good times are coming to an end.

[Savvy investors can still make money in a crisis… often the returns are even greater when times are tough. Learn all about the smart money’s way of crisis investing and Bud Conrad’s profit opportunity mentioned above – with a risk-free trial subscription to The Casey Report.]





Regarding www.skoptionstrading.com. We currently have 8 open trades, showing an average gain in excess of 78.41% since they were opened.

For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with GlobalAutoTrading and therefore auto trading is now available for SK OptionTrader signals


Our model portfolio is up 338.11% since inception

An annualized return of 117.00%

Average return per trade of 40.41%

81 closed trades, 78 closed at a profit

Average trade open for 46.27days


sk chart 22 May 2011.JPG



The above progress chart shows our performance when profits are re-invested, however, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

SK logo 26 May 2011.JPG









Friday
Aug122011

Subscribers Enjoy Trading Profits Despite Market Turmoil

The global markets have plunged recently, with many investors and traders making massive losses. At SK OptionTrader however, our subscribers are enjoying substantial profits from our trading recommendations.


One trade we recommended is up 250.57%, another is up 267.65%!


In total we currently have 8 open trades, showing an average gain of 78.41% since they were opened less than a month ago.


To find out what these trades are and how you could have made these returns all you need to do is subscribe.

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We have made these profits in spite of financial markets tumbling across the globe. On the 10th August 2011, markets plunged yet again with the S&P 500 losing 4.42%, in Europe the DAX lost 5.13% and even commodities like copper were down 3.95%. However there was something to smile about for SK OptionTrader subscribers today, with our model portfolio gaining 8.77% on the day.


Daily Returns 10 Aug 2011

There were bright spots today in safe haven assets such as gold which was up 2.16% for the day, but SK OptionTrader vastly outperformed even those safe haven assets with a gain of 8.77%.


In case you thought that this was just a one off, on Monday 8th August 2011, when the markets plunged even more ferociously, SK OptionTrader’s model portfolio was up 8.38% for the day. 


Daily Gains 08 Aug 11

We think this is both a testament to the trading approach of our service and the versatility of options as a trading instrument.


To find how we managed to profit despite the turmoil in the financial markets, all you need to is subscribe for just $199. This is not a lot of money in the grand scheme of things. If you had just $5000 invested in the S&P 500 you would have lost that much in just one of these turbulent days. However if you had invested that $5000 in accordance with the SK OptionTrader portfolio you would have more than covered your subscription fee in a single trading session!


A $10,000 portfolio invested in accordance with SK OptionTrader’s model portfolio would have been up $877 on the 10th August, paying for a six month subscription more than four times over and an annual subscription more than twice over – in just one day!


Over a longer time period the gains have been even larger. $10,000 invested in accordance with the SK OptionTrader portfolio since inception (just over 2 years ago) would have grown to $44,750.18.


SKOT Return 10k

2011 has been a tough year for the financial markets, with even some of the top hedge funds losing massive amounts. However in 2011 SK OptionTrader’s trading portfolio is up over 60% YTD.


We provide our subscribers with simple straight forward trading signals as well as market updates and commentary on the market situation.


Other key stats on the performance of SK OptionTrader are as follows:


- Our model portfolio is up 347.50% since inception


- An annualized return of 110.47%


- Average return of 40.57% per trade


- 82 closed trades, 79 closed at a profit


- Average trade open for 45.98 days



SKOT Return Model Porfolio 100811

Our full trading record is available to view on our website www.skoptionstrading.com


For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with Global AutoTrading and therefore auto trading is now available for SK OptionTrader signals.


Subscribe for 6 months - $499

 

Subscribe for 12 months - $799

 

Friday
Aug122011

SK OptionTrader Banks 53.67% Return in 23 Days

Whilst global financial markets endue turmoil, SK OptionTrader subscribers have been enjoying significant profits. On Monday 8th August the S&P 500 fell a massive 6.66%, but the model portfolio for SK OptionTrader subscribers was up 8.38% on that very same day. Days later markets plunged again, but SK OptionTrader made 8.77%.


Just recently we decided to bank some of these gains, closing a trade on GLD for a 53.67% gain in 23 days. The trade was called a calendar call spread, which is just a slight variation on buying outright calls. We signalled to enter the trade 18th July 2011 at $2.18 then signalled to exit the trade on the 9th of August at $3.35.

SKOT GLD Call Calendar Spread 53pct gain

The graph above shows the progress of the trade on a daily mark-to-market basis since we opened the position on July 18th. The LHS axis shows the percentage profit/loss and the RHS axis shows the price of the position.

To go into a little more detail the trade actually involved buying January 2012 $170 GLD calls and selling October 2011 $170 GLD calls. The idea of the trade is that selling the near term calls lowers the cost of buying the longer term calls, since the near term calls will decrease in value as expiration approaches since they are out of the money.

Admittedly gold prices rose faster than we had anticipated, but we are not complaining having made 53.67% in 23 days. In fact we had recognised that gold prices could go on a runaway rally and we had considered the implications that this would have on our trades.

We wrote to our subscribers explaining that “...The idea of this trade is that selling the nearer dated call can cheapen the cost of buying the longer dated call, especially if the nearer dated call expired worthless. If gold prices rocket upwards faster than we anticipate then this trade should still be profitable since it benefits from an increase in implied volatility as well as an increase in gold prices...”

At SK OptionTrader we always consider how alternative scenarios could impact our trades, and therefore design our trading recommendations to ensure optimal performance in a variety of market conditions.

Our trading signals are crystal clear, easy to understand and simply to execute. In this case we wrote to subscribers to give advanced warning that we were going to take a long position on gold and then on July 18th we wrote:

“We hereby signal to buy the GLD Jan-12/Oct-11 $170 Calendar Call Spread @ $2.18. This trade involves selling the GLD October 22nd 2011 $170 calls and buying the GLD Jan 21st 2012 $170 calls for a net debit of $2.18. We are allocating 5% of our capital to this trade.”

As you can see the signal was clear and simply to understand. It also contained a suggested amount of capital to be risked in the trade. We provide this with every trading signal to ensure our performance can be realistically measured, via the return on our model portfolio.

Then when we closed the trade on 9th August we were just as clear.

"SK OptionTrader Trading Signal: Close Long GLD Jan 21 ’12 / Oct 22 ’11 $170 Calendar Call"

"...We therefore signal to close our Long GLD Jan 21 ’12 / Oct 22 ’11 $170 Calendar Call Spread Trade, that we bought for $2.18 on the 18th July 2011 with 5% allocated, for $3.35
Closing this trade involves buying back the Oct $170 calls and selling the Jan $170 calls.
Having opened the trade at $2.18 on 18th July and closing at $3.35 on 9th August we have banked at 53.67% profit on this trade in 23 days.."


Hopefully this example has given readers a bit more insight into how SK OptionTrader works and therefore can help you decide if you would benefit from subscribing.

Investing just $500 in this trade would have produced a profit of around $268.35 – more than paying for a $199 six month subscription with the profits of just one trading recommendation.

In the interest of full disclosure we do current have other open trades, which are showing an average gain of 78.41% each. However details of these trades are for subscribers only, so if you want to receive our trading signals and market updates, sign up now.

The key stats on SK OptionTrader are as follows:

- Our model portfolio is up 347.50% since inception
- An annualized return of 110.47%
- Average return of 40.57% per trade
- 82 closed trades, 79 closed at a profit
- Average trade open for 45.98 days


Our full trading record can be viewed at www.skoptionstrading.com - with no trades omitted or altered. All trades are detailed exactly as they were sent to subscribers.

For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with Global AutoTrading and therefore auto trading is now available for SK OptionTrader signals.

This was the first trade that we have opened and closed with GAT and we are pleased that the Autotrading program has got off to a good start.

Subscribe for 6 months - $499

 

Subscribe for 12 months - $799

 



SKOT Return Model Porfolio 100811

SKOT Return 10000
Wednesday
Aug102011

As Markets Tumble Today, SK OptionTrader is up 8.77%!

Markets took another tumble today with the S&P 500 losing 4.42%, in Europe the DAX lost 5.13% and even commodities like copper were down 3.95%. However there was something to smile about for SK OptionTrader subscribers today, with our model portfolio gaining 8.77% on the day.

Daily Returns 10 Aug 2011

There were bright spots today in safe haven assets such as gold which was up 2.16% for the day, but SK OptionTrader vastly outperformed even those safe haven assets with a gain of 8.77%.

As a reminder, on Monday when the markets plunged SK OptionTrader’s model portfolio was up 8.38%.

We think this is both a testament to the trading approach of our service and the versatility of options as a trading instrument.

In the interest of full disclosure, we currently have 8 open trades, each showing an average gain of 78.41% since they were opened.

To find how we managed to profit despite the turmoil in the financial markets, all you need to is subscribe for just $199. This is not a lot of money in the grand scheme of things. If you had just $5000 invested in the S&P 500 you would have lost that much just today. However if you had invested that $5000 in accordance with the SK OptionTrader portfolio you would have more than covered your subscription fee in a single day.

A $10,000 portfolio invested in accordance with SK OptionTrader’s model portfolio would have been up $877 today, paying for a six month subscription more than four times over and an annual subscription more than twice over – in just one day!

2011 has been a tough year for the financial markets, with even some of the top hedge funds losing massive amounts. However in 2011 SK OptionTrader’s trading portfolio is up over 60%.




We provide our subscribers with simple straight forward trading signals as well as market updates and commentary on the market situation.

Other key stats on the performance of SK OptionTrader are as follows:

Our model portfolio is up 338.11% since inception
That's an annualized return of 117.00%
We have an average return of 40.41% per trade including losses
We have closed 81 trades, 78 closed at a profit
The average trade is open for 46.27 days


Our full trading record is available to view on our website www.skoptionstrading.com

For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with Global AutoTrading and therefore auto trading is now available for SK OptionTrader signals.

Subscribe for 6 months - $499

 

Subscribe for 12 months - $799

 


portfolio-chart-220511-resized.jpg
Wednesday
Aug102011

When Buying Gold Becomes a Life-or-Death Question

Dollars or Gold 11 August 2011.JPG




By Jeff Clark, Editor BIG GOLD, Casey Research

I was recently asked in an interview if I thought gold was going to $5,000 an ounce. “No,” I said bluntly. “I think it’s going higher.”

“You’re that optimistic?”

“No,” I replied. “I’m that pessimistic.”

Imagine the condition of our world if gold reached $5,000 an ounce – and kept soaring. We’ll likely be in a mania if that happens – but what kind of mania will it be? There’ll be some greed to be sure, but I think there’s a good chance a deeper reason will be at play. And it’s the same reason that will drive you to keep buying gold at $2,000 an ounce.

You’ll have to.

There are 101 reasons to own gold right now. You might buy because of the debt turmoil you see around the globe. You may think it wise, like the Chinese and others, to keep some of your savings in gold. Negative real interest rates may draw you to gold. You might buy because of the mere fact that demand is overwhelming supply. Or you fear inflation. Or deflation.

But most of these factors are missing one critical element: They’re not yet personal.

Most reading this have not had to flee their country, been the victim of hyperinflation, or watched helplessly as their currency went poof! Longtime investors have made money on their gold investments, to be sure, but most of us bought the yellow metal as an investment and not because of a do-or-die situation.

It’s doom and gloom to say this, but I think it’s possible and perhaps even probable that at some point we’ll all feel forced to buy gold, almost irrespective of price, due to a sudden and rapid depreciation of the U.S. dollar.

How do we get to that point? Simple: You go to buy something and realize you’ve just been priced out of the market, not because the item is too expensive, but because you suddenly realize the money in your hand no longer has purchasing power. Your reaction to that event is predictable: You feel cornered, maybe even scared, and the urgency to seek an alternative takes over.

This is obviously an inflation scenario, but it’s not exactly a stretch to get there from where we are today. Here’s why.

The following chart tracks the dollar and gold adjusted by the CPI from 2000 to present. It catches many people off guard, once they realize its implications. Look what’s happened to the greenback in the past 11+ years:

Since the Y2K scare, the dollar has lost an incredible 25% of its purchasing power. Even adding the measly interest one would earn in a traditional savings account doesn’t make up for this loss. This isn’t a picture of the dollar since the creation of the Fed or since Nixon took us off the gold standard. This is what’s happening right now – a gross devaluation of your dollar-based savings. Gold, on the other hand, has not only preserved but increased our purchasing power.

Now, imagine this scenario on fast forward. Instead of a 25% loss in 11 years, what if it occurs in, say, two years? That’s what can happen in a highly inflationary environment. At some point, given the baked-in consequences for our currency and the unwillingness of politicians to effectively deal with the problem, you one day instinctively realize, as you hand money to a cashier to buy milk and she asks for more, that it is a depreciating asset and no longer a stable form of exchange.

In other words, you won’t buy gold at $2,000 an ounce because you think it’s going to $6,000; you’ll buy gold because you fear the dollar will continue losing its ability to meet basic monetary requirements and you’ll need a substitute, something that will retain its value.

Regardless of whether the downward trend with the dollar continues at the same pace or speeds up, one thing is clear: It will continue. You must portion some of your savings in gold.

Sooner or later I think we all will have an epiphany about money that pushes us to buy gold, even if it’s at levels that would seem expensive today. When that time comes, you won’t be focused on the price of gold but on the absolute need to acquire a more lasting asset.

If I’m right, $1,700 is not a high price to pay.

[For many, $1,700 at a pop is a lot of money to come up with for an ounce of gold. But Jeff found a way to buy gold and silver for $100/month, and was so impressed with the programs that he uses them himself. Check out his top two recommendations in the brand-new issue of BIG GOLD and start accumulating enough gold and silver to protect your savings from ongoing devaluation.]



Regarding www.skoptionstrading.com. In the interest of full disclosure, we currently have 8 open trades, each showing an average gain of 78.41% since they were opened.

For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with GlobalAutoTrading and therefore auto trading is now available for SK OptionTrader signals


Our model portfolio is up 338.11% since inception

An annualized return of 117.00%

Average return per trade of 40.41%

81 closed trades, 78 closed at a profit

Average trade open for 46.27days


sk chart 22 May 2011.JPG



The above progress chart shows our performance when profits are re-invested, however, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

SK logo 26 May 2011.JPG






Monday
Aug082011

Markets Plummet But SK OptionTrader Gains 8.38% for the Day!

There is a saying that a picture is worth a thousand words, but the image below was worth thousands of dollars to SK OptionTrader subscribers today.

Daily Gains 08 Aug 11

Despite global markets plummeting in trading today, SK OptionTrader subscribers were able to reap significant profits. The S&P 500 lost 6.66% today but the SK OptionTrader portfolio gained 8.38% for the day.

There were bright spots in gold and silver, which gained 3.32% and 1.87% for the day, but SK OptionTrader vastly outperformed even those safe haven assets with a gain of 8.38% today.

This is both a testament to the trading approach of our service and the versatility of options as a trading instrument.

We currently have 9 open trades, showing an average gain of 58.33% each since they were opened.

To find how we managed to profit despite the turmoil in the financial markets, all you need to is subscribe for just $199. This is not a lot of money in the grand scheme of things. If you had just $3000 invested in the S&P 500 you lost that much just today. However if you had invested that $3000 in accordance with the SK OptionTrader portfolio you would have more than paid for a six month subscription in just one day!

A $10,000 portfolio invested in accordance with SK OptionTrader’s model portfolio would have been up $838 today, paying for a six month subscription more than four times over and an annual subscription more than twice over – in just one day!

2011 has been a tough year for the financial markets, with even some of the top hedge funds losing massive amounts. However in 2011 SK OptionTrader’s trading portfolio is up over 50%.




We provide our subscribers with simple straight forward trading signals as well as market updates and commentary on the market situation.

Other key stats on the performance of SK OptionTrader are as follows:

Our model portfolio is up 338.11% since inception
That's an annualized return of 117.00%
We have an average return of 40.41% per trade including losses
We have closed 81 trades, 78 closed at a profit
The average trade is open for 46.27 days


Our full trading record is available to view on our website www.skoptionstrading.com

For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with Global AutoTrading and therefore auto trading is now available for SK OptionTrader signals.

Subscribe for 6 months - $499

 

Subscribe for 12 months - $799

 



portfolio-chart-220511-resized.jpg