The market jumped and hit theoretical Dow highs of 10,319, right near our first top. Traders that held the out of the money Sept485 were ready to throw the towel in, but we were saved in early trading with a jump on to 3.40, well above any of our buying prices.
Traders that owned the Sept500Call truly made the profits, which hit highs of 11.20, with an average cost of 3.90 to 5.20. Huge profits, and easy to follow, as futures were up dramatically, and all of us had the Dow projections to know where we should top.
The market holding above 10,220, the S&P above 1071, and the NASDAW renewing above 812 are all very positive signs of a bull rally. BUT, it is also light trading and historically there is always a burst before Labor Day, often with a slight sell of in advance.
We've profited hugely on calls for many weeks, with 34 trades, and only two losses.
What 's the market going to do long term? Long term to me means next week. Who knows? Right now, the bulls took over and we think there may be one more trade to the call before the Labor Day weekend.
NOTE: Risk increases as volume becomes lighter towards the end of this week. We do not want to hold any inventory over the Holiday Weekend.
Congratulations on some massive 45% to 130% profits, traders!
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This is one of the best articles I have ever read, helping us to understand the demand for financial assets is not like the demand for iPods:
http://www.economist.com/node/16792858?story_id=16792858&CFID=141777624&CFTOKEN=87198579economist/.com/blogs/buttonwood
if the link does not work, and then search up A Special Case. It's worth it's weight in gold
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