On 18th August, stocks were well off their highs and headlines were riddled with concerns about Europe and the Ukraine. We bought March 2015 calls on the S&P 500 ETF SPY, with a strike price of $215 for $0.83.
Just 7 days later the stock market had soared to new highs and we sold the calls at $1.24, banking a profit of 49.40%!
Through careful timing and analysis of both the fundamental and technical factors at play, we were able identify what we believed was a prime trading opportunity where the risk reward dynamics were strongly in our favour.
In our update sent to the subscribers of SK OptionTrader that week we said;