If you caught our Bonus Trades post on Thursday night, you got some free picks that could have made you a very happy camper by Friday afternoon. Let’s see how we did:
- CELG Nov 70 calls: in at $0.65, closed Friday at $1.00 for a one day gain of 53.8%
- CELG Nov 60/65 put vertical: sold at $1.85, closed Friday at $1.00 for a one day gain of 45.9%
- CELG Nov 55/60 put vertical: sold at $0.45, closed Friday at $0.20 for a one day gain of 44.4%
- BIIB Nov 80 calls: in at $0.85, closed Friday at $1.05 for a one day gain of 23.5%
- BIIB Nov/Dec 80 calendar spread: in at $1.75, closed Friday unchanged.
- We didn’t pick a specific entry on MSFT/AAPL, but MSFT started the day at 36 and sold off from there, closing at 35.03, so shorting the open and sitting on your hands would’ve yielded you a 2.85% one-day gain on that stock. AAPL was up 1.05% on the day, which is a nice move for some stocks, but might as well be treading water given how how Apple has been recently. Our assumption is that all the Apple traders were out of the office Friday buying copies of Leopard.
At this point, we’re supposed to say something like:
“And those are just our bonus trades, imagine what the real picks are like for our members!”
Well, not quite. We’re actually a lot more conservative than these trades suggest: iron condors are risk-defined by definition, have limited profit potential, and according to some people are inherently unsexy. We disagree: if you’re not content with average returns of 24% for a measly 27-day holding period (on average), then you’re probably trying to get rich quick or something. Good luck with that: there are some people we’d like you to meet.
