We Made 178% In One Day

Yesterday on the Navivest blog, we recommended an options trade on Joy Global (JOYG), as the company was going to be releasing its third quarter 2008 earnings this morning. We formulated the trade so that we’d make money, regardless of which way the stock moved after the earnings.

We told our subscribers and readers of the blog to buy the September 60 puts and September 70 calls according to the following ratio; a minimum of 6 puts for every 4 calls. The calls were going for $2.24 and the puts $1.20.

The earnings disappointed Wall Street expectations and the stock dropped almost 20%. We sent out an alert to our subscribers today and they exited the puts at $7.50! Factoring in our purchase of the calls, which cost $896 in total for those who went with the minimum of 4 calls and 6 puts, our profits were $2884 on a total cost of trade of $1616. This was a 178% profit in just one day.

While this was a rather exceptional trade, our Options Capitalist which goes out twice a week to our subscribers, does target 15 to 20% profit on each trade. We are offering a free two week trial to The Options Capitalist. To start your free trial, click here.