About 2 weeks ago we finally broke our watch levels.
I had been bearish and not expecting that to happen and we had most of our cash on the sidelines so I decided to come up with a couple of plays that we could get involved with that were totally mindless to execute and totally liquid in the options pits so that everyone could participate. And when I say everyone, I mean EVERYONE because it was such a simple play that I saw no reason not to make as many people rich as possible. As I said at the time: “After all, if the Government is going to give away free money to drive up the markets, who are we to turn it down?“
It’s not often I give away free trades to non-members but our Member site is nearly full and we’ll be cutting off access to new Members soon as we head into the Summer when we have some changes to make so I’m giving my free readers a chance to make some quick cash and come join us before we close the doors. My trade idea on Tuesday, the 14th was:
As you can see from this Fallond Stock Chart of the S&P, this train has already blown through a sell signal on the 8th and the top of the channel is rising to 1,220 with 1,200 ready to become the bottom of the range if we can punch through here. The VIX has crashed but they are still willing to give money away to the bulls on the Dow. Here’s a simple example of how you can make a 500% return by simply betting the Dow holds 11,000 through May options expiration (21st):
You can click on the post to get two more paragraphs of details extolling the virtues of the trade but suffice to say it’s BRILLIANT as the Dow was already at 11,000, which translates to just about $110 on the DIA so all we had to do to make a maximum payout on this spread was hold 11,000 through options expiration day (May 21st). I know it’s only 2 weeks later but I just thought I’d check in with the free crowd, who are not used to these trades, and discuss our progress.
As of today, the Dow is…
