Winning With Joy Global, Randgold: Street Sense

CHICAGO (TheStreet) -- Recent Winning Trades

Yesterday I showed you the trades made on Garmin (GRMN Quote) and Wynn (WYNN Quote), which resulted in some fantastic gains! Today I will show you a couple of more recent trades that proved to be huge scores, too. The key here is understanding the entry and why we entered the trade.

Joy Global: Extreme Call Trade

We recently had a bullish call on Joy Global (JOYG Quote). After their earnings and guidance, it seemed the stock had bottomed, but I still wasn't convinced. The next day, bullish momentum indicators started to roll up, and this was a good chance to put on a position.

We added some Sept 35 calls (in the money) and took initial profit on half the position at 40%. We let the remainder run and waited for the stock to hit 40, as we nailed huge triple-digit gains on the other half. This was a classic bend-but-don't-break chart that gave us a great low-risk entry point.

JOYG - Joy Global Inc. (Daily 9/16/2009) Source: BigTrends.com

Randgold: Grand Slam Call Trade

Gold and gold stocks have been on fire since Sept 2. When the spot price shot higher and headed toward 1,000, there were a number of stocks showing good quality breakouts.

Frankly, you rarely find yourself in this situation with so many to choose from! Agnico-Eagle Mines (AEM Quote), Royal Gold(RGLD Quote) and Freeport-McMoRan (FCX Quote) (which we traded for a big win in Extreme Options on the same day) are always on the radar, but I chose Randgold Resources (GOLD Quote) this time around, and it has been the best performer in the gold miners group.

We used a managed-risk approach and took some profit at the 117% gain mark, raised the stop on the part we still held and finally sold out of the position at a whopping 187% gainer!

Notes are below, the arrows point to what I was seeing before entering the trade. Once again, the 60 minute chart told the story of the setup (daily chart is below, which also was pristine).

GOLD - Rangold Resources Ltd (Daily 9/16/2009) Source: BigTrends

Happy trading!

-- Written by Robert Lang in Simi Valley, Calif.