Big Profits In A Volatile Market: SPX, Nasdaq, CMI, VRTX, LNKD, CMG, GOOG, FOSL, RL, LULU, GLD, SLV
Posted on May 08, 2012 at 20:29 PM EDT
The market opened lower on Monday, but, quickly rebounded. Today, the selling resumed; well, at least in the morning. SPX went briefly below 1350 and Nasdaq tested 2900. Things were moving fast and the options were moving even faster! We jumped into LNKD and CMG puts in the morning and had two doubles in less [...]
The market opened lower on Monday, but, quickly rebounded. Today, the selling resumed; well, at least in the morning. SPX went briefly below 1350 and Nasdaq tested 2900. Things were moving fast and the options were moving even faster! We jumped into LNKD and CMG puts in the morning and had two doubles in less than 30 minutes! We cashed out LNKD with as high as +156% gain:
I hesitated on CMG with the puts going from $5.1 to $10, and, had to just take whatever profit we had before things started to go back up:
Yesterday, VRTX jumped +55%, after reporting positive test results for its cystic fibrosis treatment. We got into VRTX May 38 calls on Apr 27 at $2:
We cashed most of them out yesterday with a gain of about +800%:
We cashed the rest out today at +1185%:
We also took the rest of our CMI puts at +102%:
Just around noon today, the market hit an intraday low and started to bounce. We quickly switch gears and cashed out our downside positions and initiated a new longside position with GOOG calls. In about an hour, we locked in some solid gains just before the close:
On the earnings front, FOSL dropped about 38% after warning about weakness in Europe. Fashion stocks suffered on the report: RL fell more than 3%. LULU also dropped 3%.
The Dow was down 76.44 points; SPX slid 5.86 points; Nasdaq fell 11.49 points:
This market just refuses to go down. A quick test to 1350 brought buyers right back in and drove the SPX back above 1360 for the close. If this bounce continues tomorrow, the pullback may be done! I thought the market might bounce off of 1350 today, but, I did not expect the bounce to be so strong that it pushed SPX back above 1360. We’ll have to see how the market goes tomorrow. However, it does look like gold and silver are going lower. I’d also look for RL and LULU to fall back to retest today’s lows.
Good night and HappyTrading! ™
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