Here’s How Our Option Trading Strategy Performed In 2014
Our Option Trading Strategy Did Very Well Last Year!
As you may know, I manage a premium option trading service here at Commodity Trading Research.
We call it the Options Profit Pipeline.
In case you’re unaware how this one-of-a-kind system works, here’s a quick rundown…
As the name suggests, the Options Profit Pipeline is an options trading service. But instead of complicated option strategies, we keep it simple- we stick to buying puts and calls.
But here’s what makes our service unique…
The Options Profit Pipeline focuses specifically on commodities and the companies producing them. When we think a commodity is set to rise, we buy calls in an appropriate commodity ETF. When we think an asset is ready to fall, we buy puts.
The same goes for commodity producing stocks…
Commodity price fluctuations are a catalyst for movements in the stock of commodity producing companies.
For example, when the price of gold rises, companies producing the metal tend to rise as well. But in many cases, the percentage gains in a mining stock will greatly outweigh gains in the metals. And when you throw options into the mix, the profit potential can be downright extraordinary.
Speaking of profits. How did the Option Profit Pipeline perform in 2014?
Let’s take a look…
There Was No Shortage Of Profits With Our Option Trading Strategy!
Since the Options Profit Pipeline was introduced in March 2014, there were 42 trades through year-end. That’s an average of 4 trades per month.
Like any option trading strategy, we had a handful of losing trades throughout the year.
But here’s the deal…
The number and size of our winning trades greatly outweighed the losers. In fact, 11 trades allowed our subscribers to reap gains in the 100% to 199% range. An additional 5 trades gave us returns in the 200% to 299% range.
And there’s much more…
Some trades ultimately ran to gains of over 300%, 400%, and even over 700%!
As a matter of fact, let me quickly recap the trade that garnered us +700% gains…
On April 1st 2014, I sent an urgent trade alert to subscribers telling them about the profit opportunity in Goodrich Petroleum (GDP). At the time, GDP was trading near 52-week lows at just under $16 a share.
Meanwhile, WTI crude oil was trading at $100 a barrel in early April. My expectation was that the commodity would slowly rise in coming months. My bullish opinion was based on the technical status of the market along with geo-political events at the time.
But that’s not all…
In the days prior to my trade alert, I noticed an unusual amount of call buying in GDP. Somewhere out there, a well-heeled investor was collecting out-of-the-money calls at a feverish pace.
In case you’re unaware, unusual call option activity can be a very bullish sign for a stock.
Look what happened next…
As you can see, it didn’t take long before GDP exploded to higher ground. The company announced better than expected well results in the Tuscaloosa Marine Shale of Louisiana in mid-April.
Thanks to the news, GDP surged to over $29 a share by mid-June. The rally sent our carefully chosen GDP June $17.50 calls from $1.35 a contract to $11.90 in under three months- a 781% gain.
No doubt about it, the trade was a grand slam!
Where Our Option Trading Strategy Is Headed In 2015
As a New Year arrives on our doorstep, we’re ready to bring subscribers a boatload of new profit opportunities in the Options Profit Pipeline.
I’m especially excited about catching a rebound in select oil names in the coming year. As you may know, the entire oil and gas industry was hit hard over the past six months as the price of oil collapsed to 5-year lows.
But now, some oil exploration names are trading at ridiculously oversold levels. I expect select names to rebound dramatically in 2015, along with the price of oil.
In fact, I alerted my subscribers to a profit opportunity in Oasis Petroleum (OAS) on December 12th, 2014. Within seven trading days, OAS rallied to our first profit target, giving us an amazing short-term gain of 250%.
If you’d like to join us on our quest for commodity-focused options profits, don’t delay. The first trade of 2015 comes out this week!
Until Next Time,
Justin Bennett
Commodity Trading Research
BIO: Justin Bennett is the head commodity research analyst at Commoditytradingresearch.com. With over a decade of real world trading experience, he finds ways for you to consistently profit from movements in commodities and the companies producing them. Sign up for our free reports and commodity newsletter at http://commoditytradingresearch.com/free-sign-up.
Category: Commodities
