I can’t believe we’re doing this again!
Thanks to FINALLY getting out of the damned DIA Feb $122.75 puts at $5.15, we’re up to around $35,000 virtual Dollars on June 11th’s $10,000 Portfolio (and we ran through the preliminary results last Friday, where we also predicted “Alpha 2 says “Cliff Ahead“). As I said in yesterday’s post “once more into the breach, my friends” and we’re going to put our profits to work with the fairly ambitious goal of getting to $100,000 by December 31st.
This portfolio will be available to Voyeur Members but trade ideas during chat will have their usual 1-hour delay. Premium members will get the trades with no delay and hopefully Matt will have a new system running that will allow Basic Members to see $25KP comments with no delay as well. If you are not a Member yet, now is a good time to join. Check out the subscription page – Our EXAMPLE trade on C just closed up 200% and our ENP example returned 137% – not bad for free samples, right?
We didn’t play the $25KP this week but Monday’s DIA play in Member Chat was a good example of the kind of trades we’ll be looking for. The trade idea there was:
DIA $117.75 puts should give good bang for the buck at $1.06. If I had the new $25KP up and running I’d go for 10 with a DD at .86 and a stop at .76 for a $400 risk on the first trade.
As you can see from the chart below we didn’t get our chance to Double Down until Wednesday and there was a brief and scary dip Friday morning that touched our .76 level but, of course, my Friday morning Alert to Members went with 2 aggressively bearish plays (TZA and QID) so we were clearly not going to let a little flush scare us.
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This is why we AVOID hard stops! When you put in hard stops you will get triggered on spikes all the time. When you see that quick move in the opposite direction prior to a stock making its big move – that’s what pro traders and market makers call “flushing the stops.” It’s a specific move designed to, as Cramer likes to say “shake out the weak…
