Friday, January 11, 2013
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.
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