Tag

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

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…

Read More

OPNewsletter (Outperformance)- May’09 +6.1%

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

Option Trading is equally useful to retail traders and can generate consistent income if used properly. Hope you enjoyed the free trade alerts for some earnings play (You may sign-up for the Basic membership that is free till Dec 2009) A Fantastic week for OPNewsletter! We played HAL, IBM, UPS and AMZN for earnings and all these one day players nicely added value to the portfolio. We chose to close HAL and AMZN and to keep IBM and UPS for further gains. These were special circumstantial opportunities and we took full advantage without having to worry which direction stocks will…

Read More

Bank of America (BAC) : A Speculative Trade

By | Calendar spread, Investment Strategy, Trade Ideas, US Market | No Comments

Before I start the post, let me warn that trading into financial is full of risks and you may lose your capital. You should make sure that you have a proper risk management plan in place to handle this and should only invest what you might be willing to lose 100%. And this particular trade you should not try if you think BAC is headed for bankruptcy/ nationalization, wiping out shareholder’s equity. (As a general suggestion, one should never invest more than 2-3% into any speculative trade. A good money management is extremely important as these have high risk for…

Read More

OPNewsletter- Mar’09 +8.8%, Apr +2.4% (Open)

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

March’09 portfolios were closed +8.8% (excluding commissions) and +5.6% (including commissions). I used up about +46.7% of the assumed 10K capital for OPNewsletter. This result doesn’t include excellent results from bonus trade alerts. When compared with broader markets, this was probably one of the best months for OPNewsletter. Look at the major market movements since we opened the Mar (Mid Feb’09) portfolio. RUT traveled almost -20% south; and DOW, S&P500 and Nasdaq ranging from -14% to -16%. All this was followed by sharp snap back rallies. Isn’t this amazing, almost 20% back and forth move in one month. I have…

Read More

Option Business aka Insurance Business

By | Investment Strategy, Option Trading, Option Trading Strategy, Trade Ideas, US Market | 3 Comments

A bounce is due, no, I think overdue. We have all realized that Mr. Market can remain irrational longer than one can remain solvent. So though the probability of bounce is high, don’t count on it for long term bull market till there are sign of economic improvement. The primary trend is bearish, as clear as that could be. However, this market is bringing its own unique rewards. I would like to compare it with insurance business and let’s apply their business model to option trading. As the risk is rising, Options’ premium is rising as well and as an…

Read More

Outperformance Continues at OPNewsletter

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

When compared with broader markets, Feb was an excellent month for OPNewsletter coupled with a few good learnings (kinda reinforcement, been there done that, but forget that). Overall, OPNewsletter for Feb closed up +5.6% x-commissions and +2.6% including commissions. Capital preservtion and thus allocation was higher priority vs missing an opportunity. These results doesn’t include the speculative directional trade which were shared here (only OPN subscribers can see this thread) and here at my profile on InvesCafe (Free) which includes likes of RIMM +40%, V +7.8%, BIDU +5.2%, BAC +10% to +40%, ESI + 33%, SRS, STT, WHR, BTU, AXP,…

Read More
DISCLAIMER AND NOTICES: None of OptionPundit or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial advisor, a registered investment adviser or a registered broker/dealer. Options involve risk and are not suitable for all investors. All investors who deal with options should read and understand the publication "Characteristics and Risks of Standardized Options." A copy of this publication can be obtained by clicking on this link. OptionPundit does not promise, guarantee or imply verbally or in writing that anything taught through our newsletter, in any printed material, or displayed on our website will necessarily result in a profit. OptionPundit is the copyright owner of all text and graphics contained on this website. Copying, publishing or redistributing any material in any way without the written consent of OptionPundit is strictly prohibited.The owners, publishers, and agents of OptionPundit are not liable for any losses or damages, monetary or other that may result from the application of information contained within this website and/or newsletter. Within this website, we publish materials that meet specific criteria representing characteristics associated with described trading strategies. Individual traders must do their own due diligence in analyzing featured options to determine if they represent a suitable opportunity. OptionPundit and any of their agents, affiliates, representatives, employees, principals, business associates or affiliates, partners or independent contractors are not responsible for any losses or profits that may result from the application of information contained within this website and/or newsletter. Past performance is not indicative of future results. Option trading involves substantial risk. You can lose money trading options. The past results posted on this site are meant to give you a reasonable idea of what you could have made or lost trading by following the OptionPundit service but are in no way an exact reflection of what you would have made or lost. Therefore, you should not rely on our past trade results as a perfect replication of what your returns or losses would have been by following our service. There are inherent risks involved in the stock market and these risks should be considered prior to any decision. The representatives of OptionPundit may or may not hold a position in any stocks listed at the time of publication and reserve the right to buy or sell any security, option, future or derivative product without notification. Nothing published by OptionPundit should be considered personalized investment advice. Although the OptionPundit team may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by the OptionPundit team to you should be deemed as personalized investment advice. OptionPundit products are delivered electronically by email and by access to a membership area where trade alerts and special alerts are posted. ©2015 OptionPundit. All rights reserved. Terms of use apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law.