Apr +27.8% and May +3.4% (Open)
Published on May 6, 2015
Published on May 6, 2015
Just like Jan 2015 (+27%), we had an excellent repeat in April 2015 as OP Income Newsletter delivered +27.8% (x-commissions). For the Month of May 2015, we are up +3.4% and are nicely positioned for any pullback using our specialist VIX and SPX portfolios. These results come after a terrific first quarter Jan +27%, Feb +3% and Mar +4.3%.
EARNING ANNOUNCEMENTS OFFER INCREDIBLE OPPORTUNITIES
Earning months are one of the best months for OPN members due to unique Implied Volatility Structures (IVS) AND Underlying Stocks Behaviour prior to the earning announcement. Some stocks have predictable repeating behaviour. Besides, using simple mathematics your edge can be calculated in advance. When you combined a good structure of trade, the odds are nicely in favor for a winning trade.
We have already shorted chinese stock market via selling calls on April 30 which are profiting nicely since then. Also we have already aniticipated the pullback in SPX and positioned via short term broken wing butterfly risking only $65 with potential to deliver as high as 10x should SPX stays within +2050 and 2100 during next two weeks.
WHY SO MANY TYPES OF SPREADS
During a recent private consult, once of the student asked why there are so many different style of trades in OPN e.g. Iron Condor, Credit Spreads, Broken Wing Fly, Calendars, Naked Calls, Verticals, Digonal spreads and so on? Why don’t just stick to either buying calls/put or trade simple credit spreads?
Let me tell you something that you already know. Mr Market cares for no one and give a damn to what OP or anyone else think. Simple calls/ puts and credit spreads enjoy better gains for DIRECTION. But it’s difficult to be right about direction and also requires greater efforts. You have to keep searching for that next trade.
Options Trading is about capitilizing on implied volaitlity structures as much as it is about leveraging for directions.
Options offers so much of flexibility then why not structure trades that are more favourable? By utilizing a combination of Theta/IV we strcuture cash flow positive trades which will not only deliver consistent results but also won’t have big drawdowns. These trades are HIGH PROBABILITY trades to bring consistent money. And we don’t have to keep searching. For example, RUT Iron condor is something we have been doing in OPN since 2007!!! By focusing and understading the “character” of RUT we have worked out specific parameteres that have been working absolutely great.
MANAGE THE RISK AND TAKE PROFITS
As a trader, the first and foremost thing is to manage the risk and take profits when markets are delivering it to you. You position youself for short wins and continously work for buiding portfolio for the long run. Making money is not easy and is not a short term goal. It’s a journey that everyone has to master in one way or the other; and until unless you have gone through one complete market cycle (at minimum one), it’s prudent to be skpetic at extremes. These short term gains help like milestones that helps you reach to the final destination.
At beginning of 2015, I mentioned that 2015 is going to be an interesting year. After Jan, April now I expect Jun-July to be another excellent months. Besides, volaitlty profiles for several underlying assets are become more and more interesting offering dynamic opportunities in the coming months. Are you ready to profit from the next market leg?
If you are still not part of OP Income newsletter, I invite you to join and expereince the unltimate options trading yourself. Position yourself in right way to profit for the upcoming opportunities.
Profitable Trading, OP