Let us start this report summarizing the trades we performed this week. It's going to be very interesting, since we are going to show how to smartly invest a relatively small capital (say $2,000) and obtain a profit of more than 100% in a single week.
In a previous report we showed the incredible results we had this past Tuesday, when the markets sparked up and we were able to catch very nice profits of over 50% in that one day.
But the rest of the week has also been very good. On Wednesday, we had two trades where we went long once again using options on the Q's, the popular NASDAQ100 ETF.
Thursday we started the day with a short position which we held for a very short time, followed by a long position in the afternoon. Prices were in a range all day, which made the day fairly un-exciting.
On Friday, we had one position going long, which we held almost all day long.
The results are summarized in this table. We indicated here the individual trades, with opening and closing times, the price per contract at open and close of each trade.
In this table we also show how a relatively small investment capital can produce great results. We show here how a $2,000 amount could have been managed. So the table shows what you could do with a $2,000 amount utilized each trade. We are not compounding or re-investing, we simply buy the number of contracts allowed by the opening option price. In this first trade, each contract cost $355, so our $2,000 capital bought us 5 contracts. In the second trade, each contract was only $44 so we could trade 45 contracts, which produced a lovely profit of $540 on that single trade!
The initial prices of the contracts we looked at this week ranged from of $44 to $375, which allowed trading anywhere from 5 to 45 contracts per trade.
The bottom line is a fantastic profit of more than $2,800 for the week obtained over a total of ten trades. The initial $2,000 grew to $4,800. This is a profit of 140% over the initial margin. We're definitely happy!
