Michael Shulman

Banking on Short-Side Profits

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In fact, we sold it for $3.50 on the day after we closed the Citigroup put. All told, we banked a 179% gain in Citi and another 143% return in the XLF, while the broader market was having one of its toughest weeks.

Now, while I love to talk about winning trades, there's the occasional position that turns against us. As I said earlier, if the financials get a boost -- whether through a Fed interest-rate cut or some other good news -- then it's time to head for the hills, if you hadn't already done so.

With the same alert that we closed our XLF puts, I'd told subscribers to establish another XLF position -- one with a June expiration and a $23 strike price, as it had traded down to $27 and had some more downside left in it.

Unfortunately, we lost some pennies on that one when the Fed made an emergency rate cut, which helped the stock and hurt our puts. So, we closed out the position with a 3.5% loss -- but I love this trade anyway.

Why? Discipline and communication, plain and simple.

We're using trading tactics -- that is, buying put options -- to make smart short-side investments. This means that things can change frequently for our positions, so I aim to stay in touch as much as possible to let everyone know when to sit tight and when to protect their capital.

I had told subscribers that Citi would bottom when the stock hit $25 bucks a share. The alert telling folks to close out the puts was sent out when the stock hit $26, because trying to perfectly time a bottom is surefire way to get in trouble and give hard-earned profits back.

The stock went down to $24.47 the next day but then bounced like a lacrosse ball and shot straight up above $28. Whether it was helped by bullishness surrounding the Fed actions and/or by investors looking to pick shares up at bargain-basement prices, the fact is that we were smart to take our short-side profits and run when we did.

You have to stick with that kind of discipline -- and it's my mission to not only bring strong short-side recommendations to my subscribers, but to stay in touch with the progress of our positions. This means sending out alerts when we should hang in there and ride out the volatility, and also let subscribers know when it's time to hit the exits and preserve our winnings.

Although many investors haven't yet discovered the amazing profits and potential that the short side holds, those who are journeying with me on the so-called "dark" side are blazing their way to truly spectacular returns.

When markets, sectors and stocks are falling and other investors are heading to the hills, we are confidently jumping in and riding these names down as far as they can go.

We've made some nice returns so far, and there are plenty more to come. And I'm already looking for the next batch of opportunities that will make my subscribers tons of dough.

These goals, and these profits, can be yours with ChangeWave Shorts.