Outperformance Continues, OPN Jan’15 +11% (Open)

by OptionPundit on January 16, 2015

While most of the major markets such as Dow, S&P500 and Nasdaq were in red for during the past week, OPNewsletter Jan’15 portfolios are up a solid +11.3% so far. After booking +30% gains on VXX (a volatility play), NFLX +50%, INTC is closed for +11.8%, SPX Butterfly for +40%, remainder of OPN portfolio is doing good as well. Our portfolios are well positioned.  If the markets continue rallying next week, our volatility play VIX will bring in nice gains accompanied by VA and ATHN. If markets remain sideways or pullback slightly, our positive theta spreads will be big winners.

If you’re still waiting on the sidelines, it’s time to join now. There are plenty of earnings play. Next week I will be setting-up trades on AMZN, GOOGL, MA, YUM to name a few. Besides, high vols are going to offer some long term opportunities as well.

If you would like to here what some of our customers are saying, please listen to Mr Sandy from Texas, USA…

Thank you for your kind words Sandy.

OPNewsletter is a complete package that includes not just the non-directional trades but also the directional trades. We trade not just the Implied volatility but also swing trades based on technical analysis. There are CALENDAR SPREADS, IRON CONDORS, VERTICAL DEBIT SPREADS, CREDIT SPREADS, BUTTERFLY SPREADS and a lot more.  Here is what US National Athlete Randall Bal (former world champion) has to say about OptionPundit service-

As I shared earlier, earning season is about to start and there are so many amazing play. High relative volatility is going to make this quarter very different from previous quarters. We are already seeing it. If you are not yet a member, the subscriptions are currently open and you may want to experience the powerful consistency of income yourself.  With NO PROFIT, NO FEE offer, there is nothing to worry about to join today.

Should you have any questions, kindly feel free to contact me at Ask(at)OptionPundit.com

Profitable Trading, OP

{ 0 comments }

A Broken Wing Butterfly for Trading Russell 2000

by OptionPundit on January 13, 2015

How do you trade downside, while still not losing much if the underlying continues to go up?

This is a question I am often asked by many. There isn’t any better instrument than options, that I know of, to trade such a scenario. Albeit, the answer actually depends on how much do you understand options.

In this post, I will take an example of Russell 2000 (Ticker : RUT) using real-time prices (as of this writing)-

Our hypothetical scenario (not what I think) : I think RUT is done going up, but I can’t be sure. There were many times when I thought this will happen but it didn’t, resulting in loss of my trade and capital. On the other side, there is high likelihood that it will drop. Based on my best estimates, I think it will touch 200dma, in 3-6wks, which is around 1150. So what can I do? Well there are many way to trade this scenario, but one of the scenario, I am going to use is utilizing BUTTERFLY SPREAD.

Here is how -

[click to continue reading…]

{ 0 comments }

Out-performance Continues, OPN Jan’15 +3.6% (Open)

by OptionPundit on January 9, 2015

Dow, S&P500 and Nasdaq, all major US indices are back into red for 2015 so far, while OPNewsletter Jan’15 portfolios are up +3.65% so far. After booking +30% gains on VXX (a volatility play), we have also gained +7% on our Russell 2000 or RUT Iron Condor. We are comfortably placed for our 12-15% target for this condor. In fact, inspite of big pullback our bullish pick Virgin America (VA) showed amazing relative strength and gained +9% within the first day of opening. XLE butterflies are slightly underwater, but another volatility play VIX is up over +13%. We added 3 more portfolios yesterday alone which should bring nice gains next week.

There is something unique about the pullback yesterday which hasn’t happened at least during the last 4 pullbacks. If you are an OPN member, you will hear more about this on Tuesday as I want to watch Monday’s action before releasing that report.

Listen to what US National Athlete Randall Bal (former world champion) has to say about OptionPundit service-

Earning season is about to start and there are so many amazing play. High relative volatility is going to make this quarter very different from previous quarters. If you are not yet a member, the subscriptions are currently open and you may want to experience the powerful consistency of income yourself.  With NO PROFIT, NO FEE offer, there is nothing to worry about to join today.

Profitable Trading, OP

{ 0 comments }

Is Crude Oil Bottoming?

Crude oil has fallen more than 50% since May of 2014. It is now approaching a 15 year supportive trend line that can be traced back to 1999. This line says that support may be found in the vicinity of $45-$47. This is also a price range OP has been mentioning on his tweets. As […]

Read the full article →

OP Income Newsletter Dec’14 +4.8%, Jan’15 +1.3% (Open)

Dec 2014 was, what I call, a “mis-direction” month. First there was a pullback leading some to believe that this year Santa may not visit with plenty of gifts, then on Dec 16th, SPX found a support and powered another rally taking SPX to new high around Christmas. After hitting the upper resistance line at […]

Read the full article →