Red Hat Jumps 10 Precent!
The markets have been really volatile this week. Selling pressure mounted late Tuesday. On Wednesday, stocks were in a free fall. We had positions on both sides, and we quickly added puts on Wednesday morning. We also kept a lot of cash, which allowed us to react to the market’s sharp sell-off.
Our BIDU puts gave us an overnight +74,85% profit:
We also picked up CELG, AMGN, and SWKS puts on Wednesday for some nice intraday gains. Here are some of those exits, as we locked in partial profits:
Late yesterday, while the market was still selling off, I noticed that big buyers started buying RHT. I notified my members to pick up RHT calls.
After the market, RHT reported strong earnings and gave solid guidance. Today, RHT jumped +10%, and we locked in an nice overnight profit again:
This morning, we also picked up LULU calls, after the company reported a strong quarter. We did a quick intraday trade and exited the trade near the high of the day:
This market is volatile. So, we trade on both sides, while keeping lots of cash. The trades that I publish are not big right now, mostly 10 to 30 contracts. I also encourage my members to keep lots of cash. In the Ecstatic Plays portfolio, I have been keeping about 85-90% cash for months now. This allows me to react when things turn. Having positions on both sides also helps.
This market now is a stock-picking environment, with the potential for a correction. We added some downside protection today. After locking in profits yesterday and today, we are now about 95% cash.
Good night and HappyTrading!™
Disclosure: None