How we nailed Infosys Earnings? (17 of 20 earnings right)

How we nailed Infosys Earnings? (17 of 20 earnings right)
How $0 investment made $5300 profit

We always participate before the event happens, not after the event.

Infosys(INFY) went up 19% on the NYSE today. How was our system set up to capture the movement?

Yesterday we had a meeting about the Technical analysis and noticed the Big Hedge Funds buying calls & selling puts.

We had 2 options to capture the gain :
1) Buy 1000 shares of INFY at $44 for $44000 to make profit of $8,200 (INFY went up $8.27) or loose how much ever it looses. We dont like this.

2) Buy Feb 13 - $47.5 calls for $0.55, total $550 for 10 contracts (1 US Contract=100 shares). We sold these for $4.80  making 900% profit overnight.

3) Sell Feb 13 - $40 puts for $0.55, collect total $550 for 10 contracts (1 US Contract=100 shares). We bought these back for 5 cents  making 1000% profit overnight.

Add 2 & 3.. For $0 investment we made $5300 profit.

See the picture of these contracts in one of our accounts.

Infosys Jan 2013 options analysis

Infosys Jan 2013 options analysis - This is a free trade, we give out every quarter

Let us look at where smart money is thinking infosys will end up before third Friday of Jan 2013.

There are 8360 contracts sold at $45 - This suggests INFY will not go more than $45.

There are 2900 puts at $57.5 which are worth ($14.8x2900x100=$4.2million) some one who is confident this will go down further is holding the position

There are 5400 $40 contracts at $0.7  . If this Hedge fund has to make a profit on its investment, Infosys has to close below $39 on Jan Expiry. This is possible and we will go with this option, but wait for last minute buyers on Thu..

Final target for Infosys in 2013 is $28-29

Gold at cross roads again

Gold at cross roads again -

As mentioned earlier Gold is at cross roads and on the verge of breaking down from its peak of $1943/oz on AUG 2011.

Gold is in a circle similar to 2009, now it is different. it is on the path to $1400/oz pretty soon.
There are rumors no new $$$ is printed..

India :
As Gold kept falling (-20% from AUG 2011 $1943/oz) Genius Indian government kept depreciating the Rupee to Rs55/$ and keep Gold rates steadily increasing at Rs 32,000/10gms the highest so far. Reason, in India if Gold rate comes down, real estate will follow and banks will become pauper (Bankrupt)..

We think Rupee can touch Rs60/US$ by mid 2013.. and the US$ keeps getting stronger.
No much movement seen in Gold. so no ideas on Gold & Silver.