Wednesday’s of expiration weeks are usually flat, Thursday’s usually down.
But what constitutes flat when the market is jammed up 200 points in the afternoon and gives back 1/3 into the close? We had a fabulous day as our put plays from the morning post were spectacular: I said USO $34 puts for about $1 and they opened at $1.35, made a quick 20% and finished at $1.50 (up 11%). FSLR $190 puts opened right at our $2.95 target and shot up to $6 (up 100%) and finished the day at $4.40 (up 49%). FAZ opened exactly at my $4.95 target and ran up to $5.83 (up 17%) and finished the day at $5.41 (up 9%), which isn’t bad for a stock and, of course the hedged entries worked perfectly. Pretty impressive isn’t it? I know some services that have to pick through a month of selections to find 3 winners like this and here they were for free yesterday. And those are just the free picks I sawpre-market! We did even better once the market opened and we could see what was happening in Member Chat.
This would be a good time for my members to make sure they referred at least one friend this month in order to keep the bonus 20% discount we gave them for May. Even trial PSW Report Members canlock in a future20% discount bymaking a May referral. Just go to your account link and send an Emailto a friend- it’s not hard! If you are not already a member, use this link to sign up for a free trial of our Report Membership (no CC required).
Going to cash kept us flexible and able to take advantage of the wild market swings. We added FSLR $185 puts at $2 right out of the gatein our 9:42 Alert and those flew up to $3.75 by 1pm but we got cautious on shorts at 10:47 when our levels seemed to be holding. AMZN looked ripe for a fall at 11:30 and the $75 puts gave us a quick 20% an hour later (right on target) and 3 minutes later we went for BIDU $230 puts for $2.30, which topped out at $2.75 at 1pm. We’ll have to wait for inventories to see if our XOM $70 puts for .70 pay off. FSLR was doing so well I had to warn members notto be greedy at12:37 and, at 1:42, I called a full market turn by going full cover on…
