For subscribers of the SK OptionTrader service, 2013 has been phenomenal. All of the trades that we have closed have been winners, and we have added to our streak again as gold collapsed. We held the belief that the gold bull market had finished its run for the current cycle in February, and therefore have been profiting from the deteriorating gold prices ever since.
Last Thursday, March 11th, we recommended to our subscribers to “buy GDX Sep 21 '13 +$30/-$25 Put Spread at $0.80”. The end of the bull market would trigger an absolute capitulation in gold stocks; we had set a target of 300 for the HUI, which has now been reached. Through Friday and Monday’s trading periods the HUI crashed and fell 14.87%, resulting in a drop of 17.78% in GDX. This drove the value of our Put Spread from $0.80 to 2.20, that’s a 175% gain in just 2 trading days!
Once the gains were showing we swiftly chose to close the position; with the capital freed up we can enter other trades very soon at levels that offer more favourable risk reward dynamics than continuing to hold the trade. Therefore we signalled “to close our GDX Sep 21 '13 $30/$25 Vertical Put Spread at $2.20”, banking our 175% profits.
During the time that we held this position, we outperformed a short position on GDX, the underlying asset of our trade, by nearly 10 times over!
Not only that, by we beat a short HUI position by nearly 12 times over, and outperformed a short gold position by more than 13 times!
On Monday alone our overall portfolio rose 10.03%. Yes, our entire portfolio gained 10% in a single day as a result of our recommendations. Not only that but since inception we are up 605.20%, and have had an annualized return of 69.57%!
All 10 trades closed in 2013 have been winners and have averaged 68.11% each, resulting in our portfolio being up 37.01%. The question you should ask yourself is, have I done this well? If the answer is no, and you want to know what we have done to generate these returns, all you have to do is click subscribe on either of the buttons below.
Subscribe for 6 months- $499
Subscribe for 12 months- $799