OPNewsletter (Jun’09) +5% (Open)

US stock markets in general declined from -2 to -3.5% across various indices while overall OPNewsletter Jun’09 portfolio are up +5.0% (x- brokerage commissions) and +3.11% (including commissions). We have invested almost 42% of 10K assumed capital across various sectors and diversified strategies; we still have 15-10% for deployment to go. Sectors include – Steel, Gold, Transport, Overall General Market and Strategies include Iron Condor, Calendars and Covered Calls.

(Sign-up for the OPN waitlist here)

As I mentioned earlier, It’s always an advantage if the trading capital was preserved. We are now beginning to redeploy this preserved capital as per original objective for furthering gains vs. wasting energy in recouping the losses. The performance of the portfolios for the first week as stands on Friday closing-

  • GDX is down -2.27%,
  • X is down -1.15%
  • UPS is up +3.88%
  • RUT is up +9.6%
  • IWM is up +12%

Check out here for May Performance. In order to limit quantity (as it increase “trade fill” chances for members) OPN subscription is by invitation only, if you would like to join OPN, pls sign-up for the waitlist here.

I shared a free trade (sign-up for the basic membership that is free util Dec’09) on GMCR. The Covered put spread is up +3.2% and bear debit spread almost +10%. Jury is still out there if it is topping out or it is just a minor correction on the upward move.

Here is another thought for a potential trade- I am generally bullish on gold (and been vocally so since Bernanke cut his first interest rate during late 2007 and I called out, in Oct/Nov’07, potential bear market ahead). $39 is a resistance area for GDX and so is about $1000+ for Gold. If you have risk appetite and capital that you may afford to have losses on, get into straight calls for either GLD or GDX. Gold hasn’t seen the mad rush yet and I think next leg lies ahead of us. But don’t be greedy and risk only what you can afford based on appropriate capital allocation.

Trade carefully, Trade profitably, OP



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