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« Silver: Little Brother, Big Potential | Main | Discerning the Value of Information »
Monday
Apr222013

Onwards and Upwards, SK OptionTrader Passes 600% Return Since Inception

Just over a week ago SK OptionTrader set record highs for the overall return of its model portfolio when we broke through 500%. Now, only a few days later, we have rocketed through the 600% mark as well.

The trade that pushed our returns through this barrier was a Long GLD/Short GDX pair trade that aimed to benefit from gold stocks underperforming gold. The underperformance of gold stocks is something that we have covered in the past, and have profited many times since. This trade itself banked an 11.18% return in just over a month.

The graph above shows that mining stocks are simply plunging in value, an occurrence that we are more than happy to take advantage of, and we have closed 8 winning trades so far this year as a result, each of them bringing in over 80% in profits on average.

We believed that Coeur d’Alene was due for a rapid fall in stock price, and therefore purchased puts on the company. As the share price dropped towards $20 in February we banked gains of 53.33% in a week!

These gains were swiftly followed up by more in March, the first of which was our biggest winner to date. Through the use of HL puts we were able to generate a massive profit of 212.50% in just 17 days! This trade tripled in value in less than 3 weeks, and if one had invested only $500 in it then they could have paid for their SK Options Trading subscription for the next 2 years with the profits.

In the first week of April we closed 2 winners in 1 week, making money as even Silver Wheaton fell. If 2 wins in a week was not enough, we then closed 2 trades in a day that both returned more than 100% in profits.

As gold stocks collapsed we sold our GDX Puts for more than twice what we had paid for them, banking a gain of 135.71% in just under a month. Our second trade for the day outdid the first, making more money in less time.

Our GDX Vertical Put Spread position was closed just 2 trading days after being opened for a total increase of 175%! The timing on this trade could not have been better; we opened it the day before gold fell more than it had done in recent memory, and were able to nearly double our investment only 4 days later.

It is these types of trades that have pushed our overall return to more than 600% since the beginning of our service. If one had invested, in either gold or equities over the same time period their returns would be less than a 5% of ours. Our model portfolio has outperformed gold by more than 25 times, and the S&P 500 by more than 30 since inception!

To date we have had an annualized return of 69.57%, with 86.99% of our closed trades being profitable.

All of closed trades in 2013 have been winners and have averaged 68.11% profit per trade, resulting in our portfolio being up 37.01%. If you have not done as well as we have, or if you are losing money on gold stocks and want to know what we are doing differently, all you have to do is subscribe via either of the buttons below.

 

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