We just introduced an added bonus to the Premier Membership called Premier Trade Ideas. These are provided to members on top of Premier Alerts, explained here.
On Monday we sent out a Premier Trade Idea on LULU. The stock had a huge earnings push, but was showing signs of wear around the 78 price point. We looked for a quick pull back towards the 75 psychological level, and put on a Butterfly using weekly options to compliment that assumption. The LULU Sep2 72.50/75/77.50 Butterfly to be exact.
We entered the position @ 0.55 debit, and decided to share it with our StockTwits followers here.
Yesterday we exited the position @ 0.83 and decided it was only right to let our StockTwits followers know here.
The end result was a gain of 0.28, translating to a +50.91% return on risk in just three days! Sweet.
We will keep buying Butterflies, Calendars, Diagonals and the likes using weekly options and standard options as long as the volatility environment stays low. Premier Members can expect more goodness like this and the recent INTC Weekly Butterfly. We’ll continue to share a few with our StockTwits fam from time to time, but it’s not fair to paying member to share every trade.