In my pervious post OTM Long Call Condor, I shared about how to achieve very high ROI with limited risk. It requires you to predict the chart patterns formation as to where the stock price will like fall on expiration.

A far OTM Long Call Condor was constructed on Apple Inc. with strike price of $185, $190, $195 and $200 on April 10, 2008 when AAPL was trading at $150 with the possible chances that it may hit a double top or maybe a pull back to form a “cup and handle” formation with the possibility of the stock price to be at $ 190 to $195 when it expires in May.

The trade was constructed at a debit of only $0.45 and after about a month it is increased to $1.65, that’s a profit of 366%, if I take the profit now.

aapl.jpg

With another 10 more days to May expirations, the spread will expand and increase to $5.00 should AAPL is between $185 and $190. That’s 1,111% return, here come the fear and the great factor. I think I’ll wait around and see what is going to happens. Try it, it works.

“The investor’s chief problem and even his worst enemy is likely to be himself” - Graham, Benjamin

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