I love starting off the year with a big—and fast—winner!
Here are more details about the closing trade that I announced in our member chat this morning.
After just 4 days, our UAL bull call spread closed for a 60% profit!
Here’s a recap the trade:
Last week, I saw some unusual options order flow activity that indicated UAL was poised for a quick pop. I normally don’t like holding an options trade when a company is set to report earnings. I made an exception this time, however, because of the order flow.
This decision paid off handsomely. After the market closed yesterday, UAL reported earnings that smashed expectations. Investors were also satisfied with how the company’s management plans to handle the Boeing aircraft problems.
Shares of UAL soared after hours and held onto its gains today. That let us book a big winner after just 4 days.
The closing details are below, and you can read the opening notes here.
Bull call spread option (this means that we wanted the underlying stock to rise).
Stock price when I opened the trade: $38.95.
Stock price when I closed the trade: $41.03.
Premium paid to open trade: $25.
Proceeds collected when closing trade: $40.
Result: 60% gain in 4 days!
Congrats on another winner!
Jason Milton
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