A Big Winner For Elite Option Trader Subscribers

| September 25, 2009 | 0 Comments

Ever since I was young, I’ve been a bit of a thrill-seeker.  Over the years, I’ve scratched my thrill-seeking itch by riding ATVs, roller coasters, bungee jumping, and a number of other exhilarating activities.

But for me, there’s no bigger thrill than seeing an investment double, triple, or even quadruple!

It never gets old… I get the same feeling today as when I locked in my first big win (all those years ago).

I’m not going to lie and say every trade’s a winner.  But, the ones that deliver huge gains are that much sweeter.  The secret to big winners is to cut the losers short, and let the winners run.

As editor of Elite Option Trader, I spend a lot of time looking for explosive short-term trades.  The kind of trade that turns small stock price moves into double-digit winners… And big price swings into small fortunes.

That’s why we use options.

Options are able to deliver massive winners time and time again without using margin and with limited risk.  You’ll never lose more than your initial investment.  And you’ll never get a margin call.

To be honest, we keep a tight lid on our trades in the paid services.  It simply isn’t fair to paying subscribers if we’re giving out the same information here for free.  But I got the ‘ok’ from the boss to share a recent trade with you.

Here’s how our subscribers turned a 343% profit.

On July 14th, a stock we had been watching looked like it was primed for a rally.  (And boy, were we right.)

The stock we were watching was Pegasystems (PEGA).  They’re a software company specializing in automating business decisions.  There business doesn’t sound to exciting but their earnings and revenue growth rates sure are.

In the last year, revenue grew 30% and EPS jumped 95%.  And in the previous quarter, their EPS skyrocketed 192%.  Explosive growth rates like these are just the first step.

After we’ve identified a stock with great fundamental potential, it’s time to get technical.  That means we’re using technical analysis to pinpoint the best time to buy.

For PEGA, the time to buy came once the stock price had pulled back to support.  Take a look at the chart below.  You’ll see the horizontal support line between $22 and $23.

The new support was established with the stock gapping higher in early May.  That’s the last time they announced earnings… Clearly the market liked the results.

After a quick check of our numbers, we emailed a trade alert to our subscribers.

We said, “Buy the PEGA December 2009 $25 Calls.”  At the time, the stock was trading for $23.15 and the options were trading for $2.33. What happened next has been a thrill ride for everyone.

The stock started climbing and climbing.  Just a few days ago, the stock hit an all-time high of $35.  That’s a 51% gain in the stock.  (Not bad.)

But we did better than that!

The options we recommended rocketed from $2.33 to $10.30!  A whopping 343% gain!  That’s good enough to turn every $5,000 into $17,150.

Some of our subscribers have already booked big profits.  However, the best part is the ride isn’t over yet.  Aggressive traders have until December 18th to let this winner run.  That’s when the option expires.

Before the option expires, there’s another earnings announcement.  The last few quarterly reports have provided some serious fireworks.  Back in May, the stock jumped 45% and in August the stock jumped by 10%.

If history is any indication of what the future holds, we could be sitting on a ‘10 bagger’.  That’s a 1,000% gainer.  I don’t know of another investment capable of generating these kinds of returns (and thrills).

Congratulations to all of our readers who banked a very nice payday with this option!  If you’ve never ventured into options and want to put them to work for you, I encourage you to take a look at Elite Option Trader.

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Category: Options Trading

About the Author ()

Corey Williams is the editor of Sector ETF Trader, an investment advisory service focused on profiting from ETFs and the economic cycle. Under Corey’s leadership, the Sector ETF Trader has become one of the most popular and successful ETF advisories around. In addition to his groundbreaking service, Corey is the lead contributor to ETF Trading Research, where he shares his insights about ETFs and financial markets on a daily basis. He’s also a regular contributor to the Dynamic Wealth Report and the editor of one the hottest option trading services around – Elite Option Trader.

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