Updates

Welcome to SK Options Trading

2012-04-19T23:11:03Z

Welcome to SK OptionTrader, the winning service with an annualized return of 86.35%! You can be part of our service for just the low cost of just $2.19 a day. With $1000 invested in an average trade returning 35.84% you could have made returns of $358.41 - in just one average trade!

SK OptionTrader has generated fantastic performance, with 447.55% growth in our model portfolio since inception, does your portfolio have similar returns?

If it does not, then you should ask yourself why you are not a subscriber. Your $10,000 options trading portfolio could now be worth $54,755.18! This is an opportunity too good to pass up.

Our trading record shows that if you invested just $1500 in our average trade with returns of 36.17%, you could have made $1500 x 35.84% = $537.60

This would have easily paid for your new 6 month susbcription - in just one average trade!

Just recently in Januray 2012, SK Option Trader subscribers were able to bank profits of 71.58% when we closed our GLD $155/$150 vertical put spread position. You could have had this position in your portfolio and enjoying similiar profits if you were a subscriber.

Looking back a bit further, in August 2011 when global markets were in turmoil, after just 24 days, we closed a trading signal (Long GLD Mar 2012 $180 calls) with a massive profit of 197.14%!

SK OptionTrader subscribers were happy to enjoy these fantastic profits from a position with limited downside risk.

And the profits didn't just start there..

In May 2011 we closed our GLD $155 18-Jun-11 Calls at an incredible 116.67% profit...

...as well as our GLD $155 Jun 18 '11 Calls with gains of 108.52% for our subscribers..

Another example would be in November 2010 when our GLD $140 Jan-11 Calls positions allowed us to double our susbcribers money in just 6 days!

Through careful analysis of the market situation and various models, such as our gold and US real rates model, we have delivered 89 trades at a profit out of a total of 98, that is a success rate of 90.8%!

Subscribe for 6 months - $499

Subscribe for 12 months - $799

As the graph below shows, last year we outperformed the two main sectors we trade: gold and silver, by a huge margin!

Not only this but our returns vastly outperformed both the HUI, and the S&P!

Did you?

If the answer is no, then it would make sense to take this opportunity to get on board and subscribe now.

We see opportunities to trade arising left, right and center, with action from the Federal Reserve and changes in the market, SK OptionTrader susbcribers could be in for another fantastic year.

If you have a service that is generating you better returns than SK OptionTrader is, then please let us know. If not, then all you have to do is subscribe to be on the winning team that uses both long and short positions to outperform the market and deliver superios returns by utilizing options trading strategies to optimize the risk-reward dynamics of each trade.

Subscribe for 6 months - $499

Subscribe for 12 months - $799

SK OptionTrader: Notification of an Increase in Subscription Fees

2012-04-01T07:01:55Z

AN ABOVE AVERAGE SERVICE FOR A BELOW AVERAGE COST

In 2011 we outperformed Gold, Silver, S&P and the HUI.

Now is the time to take advantage of our current pricing structure and lock in last years subscription fees before the new pricing policy is imposed.

This price increase will be commence on the Sunday 8^th April 2012.

The new fee structure is as follows:

$199.00 will be increased to $499.00 for 6 months

$349.00 will be increased to $799.00 for 12 months

We encourage you to do the due diligence and also to compare us with other services in order to satisfy yourself that this is indeed the right service for you.

YOU WILL BE JOINING A TEAM WITH A 90.72% SUCCESS RATE

Our trading signals are emailed to you, easy to understand and execute

YOU WILL BE JOINING A TEAM WITH AN ANNUALIZED RETURN OF 91.38%

If you are a busy person then take advantage of the auto-trading facilities

OUR MODEL PORTFOLIO IS UP 445.53% SINCE INCEPTION

Existing Subscribers should note that this increase will not apply to them and will only apply to new subscribers and that all of our current subscribers will continue to subscribe at the rate that they signed up for originally. So those who joined us when the subscription fee was $99.00 will continue to pay that very same $99.00. We hold rates for our existing subscribers as a reward to them for their loyalty to us, which we very much appreciate.

If you are thinking about joining a winning team, then now is the time to take advantage of the current price structure before the price increase on Sunday the 8^th April 2012.

Our premium options trading service, SK OptionTrader, will never be this cheap again, so click on one of the buttons below to lock in your subscription fee.

Subscribe for 6 months - $499

Subscribe for 12 months - $799

In 2011 we outperformed Gold by 31%, Silver by 41%, S&P by 42% and the HUI by 53%.

All of the team here look forward to you having you on board.

Best regards

SK Options Trading

Still have some doubts then read what our subscribers say:

good call... thanks for the trade.. I made about $1100.

You guys earn your keep.

Keep up the good work."

-S.M.

"Many thanks! And thanks for the great rec's. Huge payoffs."

-B.B.

the original $3500 investment earned $2400 which is about 69% in 9 days. This is quite a new experience compared to any service I have ever subscribed to and there have been a lot. Thank you for your fine work"

-G.B.

I had 30 Jan 11 SLV $30 calls bought at 16cents that I sold for $1.20 . Keep up the good work."

-W.I.

"Great service. Cleared $30k in the first three weeks. Questions get quick reply. Thank you."

-B.B.

"Hi

I have subscribed to numerous news letters over the past years. Yours is hands down the best, no BS, just to the point, clear direction on what you are doing.

Thanks for the great advice, I'm making money with your help.

Thank You

-L.S.

"Hi Traders,

I am thrilled with the closeout of the last batch of option trades, having made slightly over 100% on 20K invested in 10 of your recommendations, and all in what seemed like just several days.
Good trading. . . ."

-B.R.

Your service is worth 10 times of value compared to

the 6 months subscription price.

Keep up the great job!"

-A.G.

What more can we say, other than this is the last time that you will be offered the current low price structure before the increases on Sunday the 8^th April 2012.

Our premium options trading service, SK OptionTrader, will never be this cheap again, so now is the time to act and to lock in your subscription fee.

Subscribe for 6 months - $499

Subscribe for 12 months - $799

Please note that the average price of the 100 or so options trading letters that we have analyzed is $866.00, so we are of the opinion that we are offering an above average service for a below average fee.

Some of our Trades are featured below:

As 2012 began, SK OptionTrader Subscribers enjoyed banking a profit of 71.58% on our recently closed GLD $155/$150 Vertical Put Spread.

Throughout 2011 we closed a number of profitable trades including two Call Options on GLD, both returning profits of over 100%. Also shown below are a couple of Calendar Spreads which generated profits of 53% and 43% respectively and a Call Option on GLD which returned a profit of 197%, a Put Options on KGC which returned a profit of 90.91%, all which clearly demonstrates our versatility to trade in any given situation.

In 2011 we outperformed Gold by 31%, Silver by 41%, S&P by 42% and the HUI by 53%.

If you would like to sign up for our premium options trading service, SK OptionTrader, you can do so by clicking on one of the buttons below.

Subscribe for 6 months - $499

Subscribe for 12 months - $799

All of the team here look forward to you having you on board.

Best regards

SK Options Trading

www.skoptionstrading.com

Gold Seasonality: Can We Profit From It?

2012-02-10T23:16:36Z

Seasonality is observable in a wide variety of variables. In business, sales, production, inventory, man hours and the best time to discount can be at least partially predicted by seasonal effects. Gold is no different. In different months price swings occur somewhat predictably year after year. What causes this, to what magnitude does it occur and most importantly – how can we profit?

As we all know, two things affect the price of all things tangible and intangible – supply and demand.

On the supply side, Gold stays remarkably fixed. It is mined at a very consistent rate year round with factors such as weather and temperature having much less influence than other markets such as soft commodities. In addition to this, supply can only vary rather gradually from a mining standpoint, given that it takes around a decade to bring a new find into production. However, any seasonality in the gold price must be attributed to variations in supply and demand during different times of the year, since supply could also be increased by non-mining entities, such as investors selling their holdings.

Below is the average monthly trend in gold prices since 1969. To find this, we simply add the returns for each month in every year since 1969 and divide them by the number of observed years – 43.

To construct this graph we create an index for gold prices. Day one of each year is set as the base of 1.00. Each successive day is compared to the previous; if day 2 is higher than day 1, the index rises by the percentage increase over the two days, and vice versa.

Fed Action Will Decide Next Major Move For Gold

2012-01-30T07:46:36Z

As our regular readers will know, we view US real interest rates as the key determinant of gold prices over the medium term. Six weeks ago we updated the situation with U.S. real rates (discussion of the theory behind the relationship can be found in that article) and since then, we have observed the gap between gold and real rates closing.

At the time of writing in our December update, gold had bottomed from its biggest correction since September. Since then the precious metal has regained some ground, especially in the last few days on the back of the latest Federal Open Market Committee (FOMC) announcement.

SK OptionTrader Subscribers Enjoy 71.58% Profits in 43 Days

2012-01-29T05:46:38Z

As 2012 begins, SK OptionTrader subscribers can enjoy banking a profit of 71.58% on our recently closed GLD $155/$150 vertical put spread. For those of you unfamiliar, a vertical put spread is a strategy put in place by buying a put at a lower strike and selling a put at a higher strike, both for the same month. This results in receiving our net credit of $2.15.

After gold prices became heavily oversold in December we saw a buying opportunity and opened this position on the 12th December 2011. We signalled to our subscribers to “...sell GLD Feb 18 '12 $155/$150 vertical put spreads at $2.15 with 10% of our capital allocated to this trade”.

As gold prices recovered the profits on this position grew, so on 27th January 2012 our subscribers received this, “We hereby signal to close our short GLD Feb 18 '12 $155/$150 vertical put spread positions at $0.11”, meaning that we had banked a 71.58% gain in just 46 days.

That means that if you had invested $1000 in this trade, you would have paid for a 6 month subscription more than 3 times over!

As you can see from the above graph, gold rose around 10% over the same time period that this vertical put spread made over 70%. This kind of performance demonstrates that options are one of the best vehicles for accessing the gold market.

Our options trade outperformed gold by 7 times!

We are happy to have banked profits of 71.58% and 33.97% by closing our short positions on the GLD Feb-12 $155/$150 vertical put spread. We placed these trades when gold was just above and just under $1600, in the midst of a correction which had many calling an end to the gold bull market. We did not think the bull market in gold was over and therefore placed these trades. In our opinion we think we were rewarded handsomely for essentially just speculating that gold would be trading around its 200dma in early 2012. We took on what we viewed as a limited, low-medium risk trade in return for a reward that we would more consider appropriate for a medium-high risk trade. As always we look for trades with attractive risk-reward dynamics and this was a textbook example of the type of trade we look for.

Currently the SK OptionTrader model portfolio is up 446.55%, which means a $10000 portfolio invested in accordance with SK OptionTrader signals would now be worth $54,655.11. On average our positions gain 36.68% in 50.48 days, which provides an annualized return of 98.38%. If you would like to see a full record of our previous trades, feel free to check out our trading record. With exciting new opportunities like this arising, now is the perfect time to open a subscription with SK OptionTrader and begin increasing the profitability of your options trading portfolio.

For those subscribers who are too busy to trade their own accounts we are now able to offer an autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with Global AutoTrading and eOption, therefore auto trading is now available for SK OptionTrader signals.

Subscribe for 6 months - $499

Subscribe for 12 months - $799

BENZINGA RADIO: Exclusive Interview with SAM KIRTLEY of SKOPTIONSTRADING

2012-01-26T02:54:16Z

Following the publication of our recent research into the behaviour of gold both intraday and overnight, Benzinga Radio very kindly gave us the opportunity to discuss this phenomena via an exclusive interview with Sam Kirtley, which we hope that you find both interesting and informative.

Sam Kirtley first presented the short intraday / long overnight gold trade that has yielded astounding returns since 2001 in two articles: one posted in August 2010 and the other earlier this month . We spoke with him to get further insight on the trade and the new fund that SK Options Trading has in the works.

In 2010 you first presented the idea of an overnight gold fund, citing your calculations that a $100 million hedge fund, starting in 2001 and going long gold on the PM to AM fix and short on the AM to PM fix, would be worth 2.6 billion dollars today. Talk to us about how you discovered this trade and what you have found out.

What Does A Flattening Yield Curve Mean For Gold?

2012-01-22T06:25:56Z

In this article, we look to analyse the relationship between gold and the U.S. bond yield curve. The yield curve is an immensely useful economic indicator and hence can be used as one of the determinants of the gold price.

We have previously covered yield curve dynamics, for a refresher the following excerpt should aid in comprehension of this article.

“For those readers who may be unfamiliar with how the yield curve works, we will provide a brief explanation. Bonds of different maturities have different yields. By plotting these yields against their maturities we can build a yield curve. The yield curve becomes steeper if longer term interest rates increase relative to shorter term interest rates. The yield curve becomes flatter if longer term interest rates decrease relative to shorter term interest rates. One way to measure the steepness of the yield curve is to look at the difference between the yields at two different points on the curve. For example one may look at the difference between the yields on 2 year Treasuries compared to the yield on 5 year Treasuries. Such a comparison will often be referred to as “2s5s” and is measured in basis points (bps) by subtracting the shorter term yield from the longer term yield. So if one says “2s5s are trading at +225” this means that the yield on 5 year bonds is 2.25% higher than the yield on 2 year bonds. If 2s5s go from +225 to +275 then the yield curve has steepened between those two maturities. If 2s5s go from +225 to +175 then the yield curve has flattened between those two maturities.”

Intuitively, one would expect a flattening yield curve to be bullish for gold. Flatter yield curve = economic weakness = safe haven assets (gold) becoming more valuable, especially if such weakening in the economy is followed by monetary easing, or increased expectations of monetary easing. As with any hypothesis, this one is useless without being tested.

Revisiting Our Proposal for an Overnight Gold Fund

2012-01-15T04:11:33Z

In August 2010 we wrote an article entitled “Proposing An Overnight Gold Fund” in which we explored the potential for launching a fund that held long positions in gold overnight and was short gold during the day. We pointed out that “a hedge fund starting in 2001 with $100m, with the strategy of being long gold from the PM to AM fix, and short gold from the AM to PM fix...would be worth $2.16billion today, before any fees and expenses.” We have been monitoring this trading strategy since then and therefore would like to take this opportunity to update readers on its astonishing progress.

Firstly we will introduce the thinking that led us to investigate this trading strategy. There is much debate within the precious metals industry regarding the alleged suppression, or at least manipulation to an extent, by either central banks or the proprietary trading divisions of large banks, or a combination of the two.

SK Options Trading 2011 Report

2012-01-13T02:40:48Z

Now that 2011 has drawn to a close we will take a moment to review our trades for the year. This report aims to summarise our trading strategies throughout the year, with full details given of all trades closed in 2011.

Skot 2011 Report

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Two Long/Short Pair Trades For 2012: DGP/GDX and GLD/TIP

2012-01-09T03:22:04Z

Pair trading is a trading strategy based on the concepts of statistical arbitrage and convergence. Typically it involves being long one security and short another. For example one may believe that Apple would outperform Microsoft, so one buys Apple and shorts Microsoft. A pair trade may also involve two trading two markets that usually move close together but have drifted apart, for example the US and UK stock markets. If the FTSE has rallied strongly when the S&P has not, the trader may decide to short the FTSE and buy the S&P, taking the view than the US stock market will catch up to the performance of the UK stock market. Whilst our primary focus is on trading options, we have identified what we believe are two attractive pair trades for 2012.

Long GLD/Short TIP

The first of these pair trades is one based on convergence. Historically US real interest rates have an inverse relationship with gold prices, a relationship which we have written about frequently. The basic premise is that when monetary policy becomes more accommodative, US real interest rates decline and gold prices rise due to the ease in monetary policy. However over recent weeks gold prices have fallen but US real interest rates have remained low and this pair trade is speculating that the two will converge again.

To execute the trade we would use the gold exchange trade fund GLD and the iShares Barclays TIPS Bond Fund, although futures can be used as well. GLD tracks the price of gold and TIP tracks the price of Treasury Inflation Protected Securities. Since gold prices move inversely with real interest rates, it moves with the price of inflation protected bonds, since yield and price move in opposite directions in the bond market. This relationship is demonstrated in the chart below.