The markets have been really volatile this week. Selling pressure mounted late Tuesday. On Wednesday, stocks were in a free fall. We had positions on both sides, and we quickly added puts on Wednesday morning. We also kept a lot of cash, which allowed us to react to the market's sharp sell-off.
Our BIDU puts gave us an overnight +74,85% profit:
We also picked up CELG, AMGN, and SWKS puts on Wednesday for some nice intraday gains. Here are some of those exits, as we locked in partial profits:
Late yesterday, while the market was still selling off, I noticed that big buyers started buying RHT. I notified my members to pick up RHT calls.
After the market, RHT reported strong earnings and gave solid guidance. Today, RHT jumped +10%, and we locked in an nice overnight profit again:
This morning, we also picked up LULU calls, after the company reported a strong quarter. We did a quick intraday trade and exited the trade near the high of the day:
This market is volatile. So, we trade on both sides, while keeping lots of cash. The trades that I publish are not big right now, mostly 10 to 30 contracts. I also encourage my members to keep lots of cash. In the Ecstatic Plays portfolio, I have been keeping about 85-90% cash for months now. This allows me to react when things turn. Having positions on both sides also helps. (To subscribe to my services, please CLICK HERE. If you use the coupon code "SAVE" before April 1, 2015, you can get a 90% off on the first month. If you are ready to jump in and commit to a yearly subscription, the coupon code "YEARLY" will give you an additional 17% off.)
This market now is a stock-picking environment, with the potential for a correction. We added some downside protection today. After locking in profits yesterday and today, we are now about 95% cash.
Good night and HappyTrading! ™