This week was a very lively week. There were big winners in so many different markets. I thought I would take the time in this post to point out a few great trading markets that you might have not thought of. Sure, our usual markets, Russell eMini, Crude Oil Futures, EURUSD, etc., had excellent profits but a lot of treasure was found elsewhere too. Take a look at some of the swingtrades we took, direct from the tradeplans that are published in the SST Owner’s Club.
DNDN; This one was very interesting. We got into a long reversal trade on May 19th. The trade got to its first target objective and stops were moved up to lock in a few ticks of profit, in essence, a risk free trade as per the SST way. The trade stopped out with a .06 profit, covering our costs. We were able to get back on board with our newest SST setup, the ‘GetBob’ trade. That trade went to full target, from 39.12 to 40.54 for a 4% gain. Our trailing position is still trailing as of the close today. However, many of us, myself included, did not trade the stock. We traded June 39 Call Options. I exited half my position when the stock hit its full target at 40.54 for a 23% gain, not a 4% gain! That’s better, right?
But it actually got more interesting. While the GetBob trade was on its way to its full target objective, the SST identified an increase in price momentum, telling us to add to our position. On the 24th, I added more 39 calls when DNDN hit 40.02. Today, the full target was reached at 42.24 for a 6% gain. Actually no. While the straight stock made a 6% gain in 2 days (not bad by any stretch of the imagination), the 39 call option (the fixed part of our new position) exited with a 48% gain. Almost seems too easy, doesn’t it? Just follow the dots on the chart.
Meanwhile, we now have two live positions trailing from both entries and as of the close today, the stop has been pushed all the way up to 41.89. Guaranteed double digit returns with the potential for a whole lot more.
I wanted to give a detailed step by step walk-thru so that you can get a better sense of what it is to be an SST Trader. It is a unique style, for sure. It does require some simple learning. Follow the dots. Look for slightly in the money options. Manage the trade as it progresses. Actually, it is very easy. Look at the chart and see if you can retrace the moves I just described.
VXX; Another one of my favorits. Live position, June 24 puts, still going and currently up 33% with guaranteed locked in profits. This was another very interesting trade. It missed its money mgt level, the first target, by just 1 tick (.01). Then it gapped up the next day. Talk about luck. The trade would have been stopped out with a loss, due to gapping up above the risk free level but since it missed the money mgt level, even though it was cutting it as close as could be, that was enough to keep us in the trade. Notice how the stop continued to give the trade room to develop and now has finally locked in profit.
SLV; Silver continues to be a HOT trade and the iShares Silver Trust ETF is how we’re doing it. Live trade up over 47% with the same simple option strategy.
NFLX; Another excellent trading stock gains 82% returns with simple June 250 calls in 3 days. The remainder of the trade has a large profit locked in with the potential for much larger gains. This is an expensive stock at $264.45 per share. 100 shares would cost $26,445. Yet with a simple June 250 call option, we were able to ‘control’ 100 shares for just $956!! And even if it would have been a losing trade, we always get to sell our option back to recoup some of the price we paid. We never lose the entire premium, in other words.
GLD; Gold ETF (SPDR Gold Trust) in a GetBob trade, almost hitting its middle target today. Currently in a risk free position.
There were so many other excellent stock, ETF/option trades this week. Hopefully the above examples tell the story though. Each trade was very easy to take, very easy to manage and of course, very profitable. Have a great Memorial Day Weekend. I’m looking forward to next week’s SST trading. There are quite a few good looking stock and ETF trades setting up and I’m eager to jump on them if the entry levels are hit.