Feb 2011 Expiration
February Expiration’s commentary on Wins and Losses:
We ended this month with very few trades. However, we made up for it with some tremendous gains.
BIDU:
What an excellent option trade! We started out with a net credit of $2.33, however, since we are masters at this, we ended with over $7.00 in net gains. This was played just right, because we got out of the 85 puts last month at a healthy profit, and we were also able to continue holding this position into this month’s expiration. We then made a killing on the 125 calls, as the underlying security shot up above $130.00/share. Trades like this are real proof that our strategy is unmatched!
CLDA:
Another excellent trade! This security also shot up unexpectedly! However, because we were protected all the way, we had no worries! We were really smiling when we found out that many of our subscribers, including ourselves, were assigned on the 22.5 calls. We knew that this would mean that the underlying security would more than likely continue its run, and that’s why we held on to the 30 calls. We could have been even more profitable on the 30 strikes, but we got a little scared about the impending expiration. Still very profitable though, and no use crying over!
IOC:
We used a special trick trade with IOC. We made our money on the 60 puts while rolling over to the 62.5′s. We still have the same probability of making additional gain on the 62.5-50 spread and if the security remains at this level, we are in for even more gains. However, we may decide to close this position, because the margin vs. the gains are a little out of whack. We’ll see…
That’s all the commentary for now, till next month’s expiration! This was an excellent month!
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