Wheeee – isn't this a fun ride?
I warned the bears on Friday that the drop was a bear trap and we told you Monday was "Time to Buy" as CNBC chased the last of the sheeple out of their bullish positions so all their fund buddies (and us) could scoop up shares at super-low prices. Yesterday we targeted 1,284 on the S&P and we were off by a point as it rose to 1,285 at the end of the day – can't win them all, I guess…
In Friday's post I mentioned that the ABX 2014 $30/45 bull call spread at $6.60, selling the 2014 $30 puts for $3.40 for net $3.20 that we had picked up on 5/3 was only at $3.40 and still made a nice entry – ABX has been having a lovely week and popped from $39 to $42 and the spread is now $4.70 – up a lovely 38% in three days but should be well on the way to $45 today and the max gain on that spread is cashing the spread at the full $15 and a $11.80 profit for a 368% gain on cash so being up 38% in 3 days is what we call at PSW being "on track."
The other two trade ideas I singled out as still liking from Friday's post were both CHK plays and the 3 CHK 2014 $25/35 bull call spreads, selling a single 2014 $18 put netted out at a $1.20 credit on Friday morning but did even better as an entry on Friday as CHK fell all the way back to $15.60. Yesterday they were back to $17 (on the way to $18, I imagine) and the spread is already netting another $1.95 for a very quick 262% gain on cash, which is why we love those!
I called for a short on TLT in the $130s and they topped out right at $130.36 at Friday's close, tested it again on Monday and fell back to $127.60 yesterday while our long point on XLF was $13.50 and, so far, not much excitement there. Those were just the trade ideas from the morning post, of course – our real fun came in Member Chat where our aggressive bullish trade ideas during the panic Friday and Monday were:
- TQQQ July $43/47 bull call spread at $2, selling BA