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debit spread Archives - Options Trading Strategies for Consistent Income - OptionPundit

AAPL +35.6%; MCO +3.5%

By | Past Performance, Trade Ideas | No Comments

Basic members were alerted for 2 free trade ideas. One is closed for nice gains while other trade has been successfully rolled to next month. Starting with Moody’s (MCO) trade idea. The basic premise for that trade was shorting of Moody’s by hedge fund manager David Einhorn, who correctly questioned the health of Lehman Brothers four months before its collapse. I wanted a trade that will still yield profit even if I am wrong. The trade idea (An Option Trader’s Way to Short Moody’s) was first shared with the Basic OP Members (Membership is free until Dec 2009, click here…

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OPNewsletter Jun’09 is up 7.34% (Open)

By | OP Newsletter, Option Trading, Past Performance, US Market | No Comments

A week in which Dow moved between +2.5% to -1.75%, S&P500 from +3.25% to -1.5% and RUT from +4.75% to -1.50%, and all closing in negative territory, OPNewsletter gained +2% that too after increasing capital investment by 36% over last week. Overall OPN is up +7.35% (x- brokerage commissions) and +5.3% (including commissions). This excludes bonus trade gains from GDX straight calls, GMCR and POT. We have invested almost 57.3% of 10K assumed capital across various sectors and diversified strategies. Sectors include – Steel, Gold, Transport, Overall General Market and Strategies include Iron Condor, Calendars and Covered Calls. GDX is…

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OPNewsletter : May’09 (+11.2%), Jun’09 (Opening Shortly)

By | OP Newsletter, Option Trading, Past Performance, US Market | No Comments

It feels great when a single covered call option spread (done only @ 7.3% of 10K portfolio) can deliver OPNewsletter monthly subscription fee, cover commissions and still deliver profits, without making adjustments throughout the holding period. And what if the newsletter doesn’t get a single cent if doesn’t deliver profits? Welcome to OPNewsletter (A “No Profit, No Fee” Newsletter)! It is up +11.2% (x-brokerage) and +8.5% including commissions for May’09 alone (a 16th positive month out of 17 months.). As I stated earlier, after many months of waiting, we crossed our 60% portfolio investment guideline. It’s always an advantage if…

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CSX Corporation (CSX) Earnings Play

By | Earnings, Trade Ideas | One Comment

Railroad operator CSX Corp. (CSX) is scheduled to issue first-quarter earnings after market close today, with analysts forecasting earnings of $0.51 per share on revenues of $2.26 billion for the quarter. I am not so positive about the results. I think CSX might miss earnings’ estimates, but, as I always say earnings are 50:50, pls note surprise element is always there (BNI reported rise); assuming inventories went down, retail sales dipped and broader economy in shatters, they will have less goods to move. Those who don’t know about CSX, here is the description from Google finance- CSX Corporation (CSX) is…

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OPNewsletter (Jun’08) : Closed +11.1%

By | OP Newsletter, Past Performance, US Market | 5 Comments

An excellent month for OPNewsletter with double digit gains. OPNewsletter’s June 2008 was closed for +11.1%. This is nearly double of my own target of 5-7% per month. These returns excludes the bonus speculative trades on JOYG (+40%), RIG (Multiple Profit Points), GLD and CME (Multiple Profit Points-Shared for free with OP Readers), With this June’s closing OPNewsletter is up nearly 60% in the past 5months, i.e. nearly 9.9% compounded monthly that is nicely above even my own internal target of 5-7%. We usually assume US$10,000 as minimum investment and these can easily be scaled to $50, 000 or above….

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OP Newsletter (Jun’08): +5% for Week, +11.5% for Month

By | OP Newsletter, Past Performance | No Comments

What a week!! Absolutely fascinating for OPN as well for my personal account. We are up nearly +5% vs last week and to +11.54% for the month. This is nearly double of my own target of 5-7% per month. Before you proceed reading further, pls note- OPN uses its Member’s fills for tracking (Not the newsletter suggested one) OPN uses maximum investment for calculating returns for the month, even though it was for 1day (For example- 10K portfolio, we used 6K for the month, but we used 1K more for one day, the whole portfolio returns are calculated using 7k…

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