AAPL +35.6%; MCO +3.5%

Basic members were alerted for 2 free trade ideas. One is closed for nice gains while other trade has been successfully rolled to next month.

Starting with Moody’s (MCO) trade idea. The basic premise for that trade was shorting of Moody’s by hedge fund manager David Einhorn, who correctly questioned the health of Lehman Brothers four months before its collapse. I wanted a trade that will still yield profit even if I am wrong. The trade idea (An Option Trader’s Way to Short Moody’s) was first shared with the Basic OP Members (Membership is free until Dec 2009, click here to sign-up). In spite of MCO rising almost 10% against my desired direction, we successfully rolled the trade to July gaining +3.5% in June.

The other trade was on Apple (AAPL) where I shared my bearish stance based on last several year’s historical data (and pleasantly, history did repeat) –

At OptionPundit, we played this event around this time last year and made good gains. While the same approach (Bearish bias) has pretty good chance of making money, context however matters.

I shared the trade via comments section on what exactly I was planning.  Since then AAPL has been falling almost non-stop. I closed it at various profit points, the largest being +35.6% gains. Another OP reader Ron  shared his ideas for a ratio spread.

The basic membership to the OptionPundit site is free until Dec 2009. If you would like to be a member and receive alerts to free trade ideas or important market commentary, pls click here to sign-up

We are about to start July’09 OPNewsletter portfolio and this is a record month in the making. If you would like to sign-up, this is an appropriate time to join OPNewsletter.

Profitable Trading, OP






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