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…

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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…

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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…

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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…

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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…

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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…

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