OPNewsletter Feb’10 +6.55% (Open), Mar’10 (Opening)

While the US Markets have suffered one of the steepest loss since Mar’09, OPNewsletter is enjoying gains for both income as well as speculative trades. As I shared earlier, we avoided the significant portion of correction as we invested only 36.5% capital, most of which was already converted into cash by 3rd week of Jan. Preservation of capital is something that one should never underestimate. I still recall when many members didn’t really preserved capital when I mentioned, a final call, to get out on Sept 15, 2008. I can’t share those heartfelt e-mails in which a lot of members mentioned about how bear market of 2008  wiped out their trading capital.  If you preserved capital during such volatile times that in itself is an out performance. At OPNewsletter, Preserving capital is preferred to investing in a “potential” opportunity.

As of Friday close, OPN Feb 2010 portfolio is up +6.55% excluding speculative trades.  We have already started opening Mar 2010 Income portfolios. If you would like to enjoy both from Income as well as speculative trades, pls sign-up for the PONewsletter waitlist.

Here are some details on speculative trades this month so far-

1. Leader of the speculative pack was Mastercard (MA). As I was unsure about the earnings this time, this was a pure gut play via buying a cheap lottlery ticket with chances of 50/50 (more than neighbourhood lotteries. Sometimes you need to honour your gut as well (Pls don’t forget to ask your questions to Curtis, the author of “Trading from your Gut” ). The Feb $220 Puts, went all the way from $0.90 (purchase price) to over $6; but I suggested not to be greedy. Profits +377%!!
2. Alcoa (AA) earnings- Loss; though those who converted into a bear call spread as I mentioned post earnings might have eventually broke even or made profits.
3. FXP (ProShares UltraSh FTSE/Xinhua China 25). We purchased FXP stocks vs. options anticipating downward move in China stock markets on Jan 12, 2010; Profits +22% profits.
4. ISRG profits were +20%.
5. Then we played FSLR and I again mentioned a few times about $119 level; Profits +70%.
6. $330 was an interesting price point on CME. We shorted CME via $330/$320 Bear Put spread when it was crossing $330 and decided to close early. Profits +16%.
7. Just like Google (GOOG), AAPL is also a most watched earning event. Our strategic non-directional trade (for a range and without risking too much capital) for earnings paid-off nicely, and members closed it for +20% profits.
8. Launch of iPad was probably a most buzzed tech news in the recent past. Even before Steve Jobs announced iPad, I suggested for a bearish trades, directional via straight puts (this was one of very few trades of straight options; I am mostly a spread trader). At OP, we have done it time and again during every Apple WWDC (Check it our here).

We have already started opening Mar 2010 Income portfolios. If you would like to enjoy both from Income as well as speculative trades, pls sign-up for the OPNewsletter waitlist. Pls read subscriber’s testimonials that might help you understand more about OPNewsletter.

Here is one from Kevin-

I would be more than happy to share my thoughts with you about the newsletter service you provide to members. First off, let me begin by saying that your level of commitment to your subscribers is top shelf quality, and greatly appreciated. I have enrolled in a couple of other “advisory-type” services in the past, and could never duplicate the promised results that were advertised. Not so is the case with your service. Once a recommendation is posted, your timely adjustments certainly reflect what is going on in the market real time, and the attention you pay to detailed risk management is HUGE. It is very apparent you are trading what you are recommending, and the focus is living to trade another day. I can honestly say I did not expect this type of performance when I initially enrolled, but am quite elated and content with the service thus far. I would highly recommend your service to any option trader at any skill level. The answers you provide to your members are great in that you seem to realize a newbie does not need complex discussions, and the very advanced trader does expect more elaboration than “do this, or do that”. I also believe that your advertised results are accurate and repeatable by any member willing to spend the time required to learn this craft. I could highly recommend this service and would be more than willing to elaborate further if requested.

Thank you for this opportunity to share my experiences, and keep up the great work”
Warmest regards,
Kevin Sass
Gilbert, AZ, USA
Trading Experience: Options Trading exclusively since Feb 2007

Markets are at important crossroad. Currently oversold in short-term, but overbought in the medium and long term. Trade carefully.

Profitable Trading, OP