TRADE BULLETIN: Full Profit Lockdown! (GLD,DBC/UDN,MKTX,CAE)

We’re pulling big bux from the whirlwind in REAL TIME, so grab your pencils and jot this down in a jif!

First

Our GLD trade from January 9^th, Straight Up ‘Gold Going Red’ Trade, recommended you sell the GLD March 20th 148 CALL for $2.95 and buy the GLD March 20th 152 CALL for $1.85.  We then urged you to use your $1.10 credit to then purchase the GLD March 20th 144 PUT for $1.57 and sell the GLD March 20th 140 PUT for $0.53.  Total credit on the trade was $0.06.

And today, with GLD at $140.21, we’re urging you to close it down.

Buy back the 148/152 spread for $0.33 ($0.52/$0.19), and sell the 144/140 for $1.99 ($4.95/$2.96).

Net/net, you walk from the trade with $1.72 on nothing spent.  That’s a grandiose, mind-the-swinging-door profit of 1046%!

Next!

Our MKTX initiative, opened May 20^th and whose details can be found here, is next on the block.

Our breakeven on the trade is $345.45 and the shares are currently trading at $314.55.  We’re short the March 20^th 330 CALL, which expires tomorrow and now trades for $9.50.

Buy it back and you walk away from this puppy (after a very long wait) with $5.95 on $0.25 spent.  That’s a grand finale of 2380%!

Number Three

On March 12^th, we wrote you regarding our CAE initiative from a letter called Stimulate the Aviaries!  We wanted to shut down the trade, but, as we wrote at the time,

The spreads on the options are crazy wide, but the long 22.50 PUTs are $3.59 in-the-money as we write.  Enter a limit order for $3.00 and tell us what happens.  Leave the short 25 to fry, and we’ll speak again when the bells stop ringing.

If you got filled back then, you took home 5900%.

But if you didn’t, you’re now a champion.

Have a look –

Since then, CAE has done nothing but decline.  It’s now trading at $10.32!

If you’re still holding the puts, sell them immediately.  They’re trading for $10.00 each, even though they’re $12.18 ITM.  If you sell now, you gain of $30.15 on nothing spent.  Adjusted for minimal commissions gives you an other-worldy profit of 20,000%.  Leave it ‘til tomorrow’s expiry and … who knows?

And Lastly…

We traded a DBC/UDN pairing on February 27^th in a communiqué called Commodities Battle the Hydra!  There, we urged you to consider selling the DBC October 16th 15 CALL for $0.35 and buying the UDN September 18th 20 PUT for $0.45.  Total debit on the trade was $0.10.

And today?

The UDN trades for $0.85 while the DBC goes for $0.20.  Sell the first and buy back the second and you walk with $0.55 on a dime laid out.  That’s a very spicy 550% in just three weeks.  Annualize your winnings (because that’s what many people do) and your take is a very fashionable 9533%.

Eschatologically yours,

Alan B. Harvard

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