MOJO Swing Newsletter 12/4 NUGT Covered Calls Strategy Update Impt

Published: Wed, 12/04/13

Wednesday December 4, 2013

Hello MOJO Swing Traders,

Drexion Gold Miners 3X (NUGT) = Stock sis down again this morning and starting to hurt the long position. Cost is $27.75 and stock is premarket $24.75

This is okay as the Covered Call Option will be profitable today - the option was sold at $2.30 and may open low enough today to make a point there and lock in a profit. Then right after we Buy To Close - I will time the bottom - we get back into another Covered Call with a Lower Strike Price. MOJO is looking at the December $27.00 Strike Price - these right here - So stay tuned and I will be sending (2) email following this one - the first when we But To Close yesterdays Covered Call and the second when we Sell To Open the new one. I have been in this situation before and with time on our side and these option we should come out ahead at the end of the day on this one. If it goes lower I may even get some more and make money on the way back up (it's so over-sold and cheap now)

Here is email from yesterday ---------------------

Cost basis is $27.75 on 1,000 shares - Model can Sell To Open the December $28.00 Strike Price Call Option for a $2.30 premium - That's $2,300 in MOJO Pocket for giving up the upside from now until Dec 21st on anything above $28.00

If above $28.00 on Dec 21st - stock gets called away and sold at $28.00 - $27.75 = $250 profit + MOJO keeps the $2,300 = total profit of $2,550

If below $28.00 = MOJO keeps stock long at $27.75 + keeps the $2.30 lowering cost to $25.45

Thanks for reading, and profitable trading!

ProTrader Mike
email: info@mojodaytrading.com
website: http://www.mojodaytrading.com

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