$2,436 Friday – Yesterday’s Futures Play is Another Big Winner

What a week we are having!  

We don't make public pick in July (earnings months) but we came back strong for the free readers in August and yesterday's long trade idea on Gasoline Futures (/RB) made $2,436 as /RB hit our goal at $1.35 and Natural Gas (/NG) is still at $2.57, so $0 there – for now.  Add that to Wednesday's $3,600 gain on our Futures picks (per contract!) and that's over $5,000 profit in two days just from our morning PSW Report (sign up here so you don't miss them).  

We also had a set-up yesterday morning for a long play on Kate Spade (KATE) and, even if you didn't play the options, you had to be pleased with the 8% gain for the day on the underlying stock.  Someone in chat asked me why we don't have a lot of "short-term" trades and I pointed out that our long-term trades make great money in the short run AND they are much safer, as they have time to mature.  Kate is a good example as our trade idea was:

  • Sell 10 KATE 2018 $15 puts for $2.50 ($2,500)
  • Buy 10 KATE 2018 $15 calls for $5 ($5,000) 
  • Sell 10 KATE 2018 $20 calls for $2.95 ($2,950)

The $15 puts opened at $2.45, the $15 calls opened at $5.10 and the $20 calls opened at $3.10 so the net was the same $450 credit we planned and, at the end of the day, the $15 puts fell to $2.10, the $15 calls are now $5.90 and the $20 calls are $3.37 for net $430 on…
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