On 11/3/2003 EarningsTrader.com generated a buy signal on the stock RHB.
We used the online OptionMizer at www.earningstrader.com to find the best option on RHB, and it spit out the RHBDC April 17 Call Option as the most profitable option to trade for this stock.
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RHB was at $15.49, so for our users who chose to trade 1000 shares of this stock the investment was roughly $15500.
For those of us who chose to trade the April 17 Call Option, we invested only $1670 per thousand shares, so we only had to invest $1670 for every thousand shares compared to the $15,550 that our users who bought the stock invested.
On 1/20/2004 EarningsTrader gave a sell signal for RHB at $24.54. For our users who had chosen to purchase the stock at $15.49, they made a nice 57% in roughly six weeks...Not bad....but...the RHBDC Call option we bought at $1.67 was now at $9.45, a 321% profit in the same 6 weeks! Would you rather tie up $15000 to make a $9000 - 57% gain or.....would you rather invest $1600 to make an $8000 - 382% gain over the same 6 weeks!?
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