9/28/2007 11:07:59 PM
Our services' net portfolio gain 64.63% over 9 months. A 79.42% Annualized Return! For a full break up of this performance, CLICK HERE.
Our system has now moved into Sell mode. The new suggested trade for the open of trade Monday, October 1 is:
BUY to Open SPX Oct 1600 Call Option (Symbol: SPBJT) and SELL to Open SPX Oct 1590 Call Option (Symbol: SXMJR) for a minimum net credit of $0.60.
This equates to a premium you receive of $60 per $1,000 of margin (before commissions).
On September 25th we sold an SPX Oct 1355(SXYUB)/1345(SXYUT) Put Option Spread for a net credit of $0.35. (i.e. $35 per $1,000 of margin)
Note: The number of put spreads we sold was only half the amount we would normally do. On the performance page this will be shown as 8 contracts.
Last week I painted two likely scenarios, neither one of which came through! The market essentially went sideways, consolidating its large rise from the previous week. This consolidation now paves the way for a larger move and we believe that move to be to the downside (October always has the ability to surprise and a large drop is not out of the question, 1480 is the area to watch). Of course we may still be surprised by a move higher and if so, the October 1590 Calls will give us a good degree of safety.
Have a great weekend and Feel free to email me directly at email@example.com if you have any feedback or questions.