OPNewsletter Archives - Options Trading Strategies for Consistent Income - OptionPundit

Priceline- How Did We Make Triple Digit Gains

By | Backspread, Option Trading, Option Trading Strategy, Past Performance, US Market | 4 Comments

Backspread Option Trading Strategy is one of my favorite strategies when it comes to playing large move and when I am not so sure of the direction. I like to play it especially when I am biased about the direction but I don’t want to take unnecessary risk. I first introduced this spread to OP readers almost 3.5 years back and since then we have done a lot of trades using backspreads. Recent one is how we played Priceline (PCLN) earnings and netted with Several hundred % gains within a day. Here is what I wrote to OPNewsletter members before…

Read More

OPNewsletter Jul 2010 Up +8.3%

By | Butterfly spread, Calendar spread, Double Diagonal, Iron Condor, OP Newsletter, Option Trading, Option Trading Strategy, Past Performance, US Market | No Comments

We are on track for our 28th positive month of OPNewsletter phase-2, as of last Friday close OPNewsletter Jul 2010 portfolio is up +8.3% on the maximum investment of almost 60% of portfolio capital. We have started opening Aug 2010 portfolios and our first portfolio is already positive. Let’s talk consistency first, especially on trades like Iron condor which is probably the most widely used option trading strategy. OPNewsletter has lost only 1 month of RUT iron condor since May 2008, and the drawdown was only 7.15% while gains have been around 12% on average per month. RUT Iron Condor for…

Read More

OPNewsletter May +18%, June +5.3% (Open)

By | OP Newsletter, Past Performance, US Market, Worldwide Markets | 2 Comments

Another turbulent and volatile period! Last week started with a huge gap up rally after EU announced a $1trillion bailout package but by weekend it was a different story. Now there are questions on how solid it was. The confidence barometer, Euro, is now 4 years low and maybe even headed for $ parity as I wonder if EU will really step in to avoid Euro slide.  They should be pretty excited as EU economy may get much needed push with a weaker Euro. For OPNewsletter, we are 77% in cash. Remainder of the cash is invested across 3 income…

Read More

Dancing With Mr Market

By | Market Psychology | 4 Comments

So you think you can dance, with the markets? Sometime back I read a book by Barton Biggs “Wealth, War & Wisdom” where he documented several instances going as far back as WW-II that collectively market participants know what’s coming and hence market starts to show light even when it is pitch dark elsewhere. Sure enough, folks bet their real money once they feel there is some “truth” behind those “light at the end of a tunnel” hypotheses. It is generally true that by the time something makes it to headlines it is already factored into the market moves. On…

Read More

OPNewsletter (Apr’09) +7.6%, 15th Positive Month Out of 16

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

A terrific week and 3 cheers to the Bulls for sustaining the momentum. Finally, my witty Oct’08 remark on “Mark to Market” relaxation a.k.a “do-what-you-want” came true; G-20 supported by $1trillions and a market that went down nearly-2% and then back up +6.5% to close overall +5.75% (Dow). Ups-n-down, and then up up and up. There is no doubt markets are overly stretched but continuous strength in the face of overbought indicators is a sign of strong momentum. Markets continues to discount all the bad news and turns bullish mad on almost at every ray of hope; I hope that…

Read More

Fasten Your Seat Belts

By | Daily Report | No Comments

Though it is difficult to say anything like this these days, but still I am inclined to say this; Fasten your seat belts. I hope you had sufficient time to prepare for hedging as I shared my “heads-up” after Thursday close last week. As of this writing Dow futures are down almost 200 points, that’s little over 2%. The losses were widespread across Asia, (Japan Nikkei 4.5%, Hong Kong down 4.7%, India;s Sensex Down 4.5%, and Singapore’s straits times little over 4%). For OPNewsletter, we are comfortably positioned for the sell-off. In fact for the April’09 portfolios we are up…

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.