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The Little Book : FDG Profit 30%

Published on February 25, 2007

The Little Book : FDG Profit 30%

February 25, 2007

Good things doesn’t necessarily means it needs to be expensive. Recall I recommended a little book first here that is inexpensive compared to the immense value it delivers. I later shared how that little book can be used for option trading here. I also gave an examle in the same post on Feb 4 highlighting FDG. Let’s revisit the same trade (click here) and see where is it now. The example trade was created for a $270 investment and expected returns were anywhere in between $40-$98. FDG was trading at $22.68, the point of maxium return, app $98. On feb 16th, FDG closed at $23 yielding a profit of roughly $90 for $270 investment. That’s 2 weeks holding period, yielding over 30% return. I don’t think I could ask any more from an income trade with very little risk.

Here is the chart–> fdg-mfi-feb-2007.png

Cheers and wish ya’ll profitable trading, OptionPundit 

4 Comments

  • Avatar ODA 125 says:

    O.P.,

    A great example of a “simple” trade to make a fantastic return!!!

    It also shows a classic move on Feb 13th that the Market Makers
    will do from time to time right before a big move Up (or down)
    which I call a “Shakeout”. They are after the Stops on a Long
    or Up moving stock and the Shorts on a Short or down moving
    stock. Great article and proof that the simple things do work!!!

  • Avatar OptionPundit says:

    That’s correct ODA. Not many really understand the “shakeout” and panic. I am with you on that, many times MM does this trick to take away all the “stop” before making a move (in either direction).

  • Avatar ODA 125 says:

    Yes. This is why I have a pretty loose stop until after the real move up begins. I also will look at the past history of the MM to see how they have been acting in the past. The charts will show this as well. Afterall it is really between us and them…….. :{)

  • […] I introduced “The Little Book that beats the Market“. I also gave several examples of real trade on how one can find plays for “option trading” and in fact OPN subscribers know how MRO […]

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