Subscribers who followed my recommendation to-the-letter to buy call options in this vehicle over the last two days held 16 April 7 16s for an average 0.56 just before VXX took off like a banshee this morning. I updated in the chat room and via an email notification intraday with an instruction to sell half of them when the price doubled. Since numerous subscribers reported buying the calls for as little as 0.45, some may have exited on the ensuing rally to an intraday high at 1.03. Officially, however, we still hold the entire 16-option position, with an offer to sell eight of them for 1.12. An offer at that price should be entered before Wednesday’s opening. Marked to market at the 1.00 closing price, the paper profit on the position so far is $704. _______ UPDATE (Mar 22, 9:19 p.m. EDT): The calls hit 1.25 making them an easy sale at our 1.12 price. That leaves us with eight calls that have effectively cost us nothing. For now, offer two of them to close for 1.42. _______ UPDATE (Mar 23, 5:49 p.m.): With the stock market gyrating on Obamacare’s fate, our calls spiked to 1.51 near the end of the session. This allowed an easy exit at the 1.42 price I’d specified. Imputing the $284 gain to the six calls still held in the tracking position, we are now carrying them for an effective CREDIT of 0.47 apiece. Our paper profit at Thursday’s closing price of 1.48 is $1170. For now, offer two more for 1.64, a nickel below the rally target shown. _______ UPDATE (Mar 24, 3:39 p.m.): Our calls topped today a penny from where I had predicted, allowing us to exit two of our remaining six contracts for the 1.64 price specified in my last update. This would have produced a realized gain of $422 for anyone following my guidance. At the moment, the total gain on the position, using a 1.64 price for the calls, is $1266.
