As Brian said yesterday, I did recommend shares of LDK Solar (LDK – NYSE) at $29.50. I also watched it soar to about $70 for a 134% gain in less than a month.
Now, if you’re okay with 134%, that’s fine. And don’t get me wrong, that’s an incredible gain. But we can do better.
Leveraging that same stock with the June 2008 30 calls (LDKFF), for example, which traded around $9 at the time, would’ve netted a 233% gain.
As an options and value trader, I’ve been making big trades like this my entire career. In 2007 alone, some of my biggest gains came from buying put options in housing and lending, as subprime sank the sector. Take a look.
Fremont General September 2007 12.50 puts returned 291% in 16 days
Lennar January 2008 25 puts returned 279% in 40 days
Pulte January 2008 15 puts returned 224% in 40 days
New Century January 2008 25 puts returned 214% in 16 days
Centex January 2008 25 puts returned 207% in 40 days
Countrywide January 2008 27.50 puts returned 203% in 69 days
Thornburg October 20 2007 puts returned 188% in 6 days
MGIC Investments December 35 puts returned 175% in 80 days
Capital One January 2008 65 puts returned 160% in 59 days
Accredited Home September 2007 7.50 puts returned 141% in 4 days
Hovnanian November 2007 17.50 puts returned 136% in 13 days
Radian Group August 2007 60 puts returned 122% in 19 days
Standard Pacific September 2007 15 puts returned 111% in 2 days
Autonation January 2008 20 puts returned 105% in 49 days
New Century January 2008 25 puts returned 89% in 1 day
The best part – we’re in the process of putting together a new options service to mirror those gains with put and call options. Stay tuned.
Today’s Wealth Daily
It was late November 2007 when Brian Hicks told you about Anavex, as it traded at a paltry $3.75. “If it is able to execute its business plan, even a small investment in this stock is going to be an absolute home run, as seven of their drug discoveries,” said Brian. “Seven of their drug discoveries are currently working their way through the approval process after very promising early trials.”
Trading at $4.84, those that followed the advice are up close to 30%.
Part of this interest has to do with the recent releases the company has made.
There was the announcement weeks ago that its lead Alzheimer’s drug, ANAVEX 1-41, was showing promising results. There was news that ANAVEX 2-73 and ANAVEX 19-144, treatments for epilepsy, had successful results. There was even news that ANAVEX 7-1037, a treatment for colon cancer, had been shown to kill human HCT 116 colon cancer cells in pre-clinical studies.
That, of course, is potentially good news for both cancer patients and also the company’s investors. But as good as the Anavex’s results have been lately, the word is that there is more to come on numerous fronts. That’s because the results that the company has produced so far haven’t been in a vacuum-they are beginning to get noticed.
But it’s our feeling that Anavex, at $4.84, will soon be a $6 stock based on the company’s proprietary Sigmaceptor Technology Platform, which represents an area that has yet to be exploited by the big pharmaceutical companies, and the continued flow of positive news, including word that Dr. Cameron Durrant, Worldwide Vice President of Virology Global Strategic Marketing at Johnson & Johnson, was just welcomed to Anavex’s Board of Directors.
Ian L. Cooper