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Tuesday, February 05, 2013

1-Day 50+% Trade in IWM Calls

We have had a steady stream of solid 3C signals both long and short, but very short term trade signals. Even though volatility is increasing as we expected, the trades still aren't worth taking without an edge to juice up the potential returns, so we have been using weekly options-last week we went so far as to buy QQQ Calls on Thursday with an expiration of the following day, but the 3C signal was strong and even with 1 day left on the contracts, they produced a nice gain.

Yesterday we had a nice IWM long signal and went with some weekly options and sold them today for a nice gain.

Here's the wrap up of the trade from our member's site...
 Wolf on Wall Street

IWM Weekly Options

Tuesday, February 5, 2013

Around 2:55 p.m. today I closed the other 25% of the IWM calls opened yesterday, the closing trade / charts kept me busy and unable to post the final P/L as there's a strange look to some of the charts as the day wore on as well as an eclectic mix of long and short trades that each looked good;  I'll get in to the newly developing situation as I have more insight in to it; there's a fairly high probability it is a simple anomaly. In any case, here's the P/L for the last 25% of the IWM call position-the first 75% was closed at a +50% gain.

The final close of yesterday's call position  (Weekly IWM Feb. 8th $89 Call) brought in an extra 2.27% at 52.27%

Take a look at the chart of the IWM...
This shows where the position was opened as well as the initial and final close of the position for roughly a +50% gain for a day again, not bad.

Here's the positive divergence in the short term 1 min chart yesterday in white and today's negative, this was intended to be a 1-day position.

With the earlier position, the total profit was $5,550 for a day.

I'm not sure holding on to the position for another couple of hours was worth it or not, I was hoping for a more volatile pop out of the earlier flag to boost the premium, but it was more of a steady climb. In any case, we've had a pretty steady stream of solid short term signals amongst this increasing volatility, so... as long as the market is giving, we are taking and hopefully not giving back.

Brandt Uses Worden's TeleChart and StockFinder 5 Exclusively

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