Apples = Profitable Cider Return Of 380% In One Month
An Analyst (it always cracks me up how appropriately that term describes most of them) Shaw Wu downgraded the stock today on valuation concerns. Apparently it was OK, last year when it was at 180 but not now. I refuse to get on a soapbox here on my view of Analysts, but your smart so you can figure out what it is.
Here is the squeeze we got out of Apple for the trades to close the positions. This is why you have your orders in before the market opens if you are bailing out. Especially when the stock drops like a rock as it did today.
5 Contracts of APVGK- July 155 Calls sold @ $23.00= $11,500 - Commissions of $14.95 = Net $11,485.05
The ROI as I mentioned before not computable as we had no money in this trade.
16 Contracts of APVGR - July 190 Calls sold @ $7.55= $12,080 - Commissions of $14.95 = Net $12,065.05
ROI - Ditto on the above
39 Contracts of APVGR - July 190 Calls sold @ $7.40 $ 28,860 - Commissions of $14.95 = Gross $28,845.05
= Net $22,845
ROI = On original Investment of $6,000= 380% Return
The last trade was actually a good/bad one to tell you the truth. I love the results, but not so much the way I executed it. It was a dumb Bad Monkey trade.
One, I forgot about the position because I was too busy doing other things and did not watch my portfolio and I want to set an example for you.
Secondly, I do not like not getting back my original investment when I get a chance. I risked the Banana Tree itself, which is my original equity. Do not do that ! That is a good way to loose it and then you will not have any Bananas.
Now would it have hurt me to have lost the original $6.000? Not really and I did have some trailing stops in there but it is not the way to do this correctly. So, I apologize for doing it like this. It won’t happen again.
Now that being said, how cool is that trade? Yahoo as in fun, I mean we just pocketed almost $23,000 on a $6,000 trade. Furthermore we did all of this in about 30 days.
Now that being said and for the really fun part, here is what I suggest that you do. Take 10% of this money, $2,300 and go spend it this week on something. I mean by this Sunday, it has to be gone and it has to be spent on something fun just for you. If you want to include others that is OK, but you have to be the main beneficiary of what you spend it on. This is very, very, very, important. You need to reward yourself for good behavior.
This is fundamental step if you want to continue to do well trading. We are usually taught that we should be punished for bad behavior but “they” leave out an even more important step of being rewarded for good behavior. This will have a profound impact on your subconscious noodle that thinks 24/7.
If you start doing this on a regular basis you are going to be amazed at what begins to start happening. You will start becoming more successful in all of your endeavors. It really rubs off and the results will be swift and profound.
OK, now I have to get to one of my other jobs, so I will chat with you later. But I will look at possibly buying some October Calls. Will post when I have a chance today. I trust Steven Jobs to do well.
This Monkey likes Apples….
