Wednesday, May 21, 2008

CLOSE: SOLF Post Earnings Butterfly +37.1%

Here's another backtested butterfly....this stock announced earnings last night at 8pm. The open interest on the Jun 30 calls was over 13,000, so this made a good candidate for a "Hoof."

Today at 11:04am, I opened this trade as follows:
BOT BUTTERFLY SOLF JUN 08 25/30/35 CALL @ $0.89 debit

I immediately placed an exit order and got filled 24 minutes later at 11:35am as follows:
SOLD BUTTERFLY SOLF JUN 08 25/30/35 CALL @ $1.22 credit

1.22-0.89/0.89= 37.1% in 24 minutes!

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