OptionPundit

Category: OP Newsletter

  • OP Income Newsletter Dec’14 +4.8%, Jan’15 +1.3% (Open)

    Dec 2014 was, what I call, a “mis-direction” month. First there was a pullback leading some to believe that this year Santa may not visit with plenty of gifts, then on Dec 16th, SPX found a support and powered another rally taking SPX to new high around Christmas. After hitting the upper resistance line at 2095+/- SPX gave back all the December gains and then some more. However, in spite of such a roller coaster month, OPNewsletter Dec portfolio delivered +4.8% gains. And even though SPX has dropped almost 100 points during the past week, our Jan’15 portfolio is already up +1.3% and I am adding more portfolios.

    2015 is going to be an interesting year for Options traders. I expect higher vols vs what we have seen in recent past giving us, the options traders, much more advantages. There are few unique strategies which will be more viable in 2015 then those were in 2013/2014. Besides, next few weeks might bring some incredible opportunities for those who are prepared.  OPN 2015 portfolios will also see some additional strategies that I have experimented with in 2014.

    All in all, if you are an OPN Member, get ready for an interesting 2015.

    Depending upon Technical or Volatility reasons, OPNewsletter trading ideas includes IRON CONDORS, CREDIT SPREADS, CALENDARS, STRADDLE, STRANGLE, DOUBLE CALENDARS, BUTTERFLIES and much more.

    Wait-listing fee is currently waived. NO Profit, NO Fee* offer is still applicable and if you sign-up now, you will have immediate access to all the 20,000+ historical posts, thousands of historical trades with real-time adjustments, market commentary and so on. You will also have access to numerous educational resources.

    Here is a customer feedback on how was his experience with OP Income Newsletter (you may kindly read more here)

    I have been trading for about 16 years witnessing my capital being managed by different brokers. Some brokers were purely option traders and others were stock fund managers. I have had both very good years and bad years but progressively the good years have being vanishing. Last year I decided to start working more aggressively to learn different options techniques and put them to the test. In my search for knowledge I came across the Option Pundit website.

    On my first month of trading with OP, I made enough money to pay my annual subscription and provided a good boost to my portfolio. Option Pundit is well tuned with the market and exhibit option trading techniques far more sophisticated than my previous options brokers. I am also very impressed with the caliber of many forum members who constantly add valuable comments and information. My experience these first two months with OP have being very enriching and rewarding.

    Luis González
    Thousand Oaks, California, USA

    If you would like to know more, or should you have any questions, please feel to write to us at Ask@OptionPundit.com

    To succeeding together,
    The OptionPundit Team

  • OP Income Newsletter Mar +19%, April +9% (Open)

    At OP Income newsletter, the out-performance vs. broader markets continues. For Mar 2014, based on the invested capital (56% of the portfolio), it delivered +19.4% returns. That’s > +10% on the overall portfolio capital. This performance doesn’t include results from OPNExtra! (High risk/ High reward trades) which had a solid run during the month of Mar,  and also excludes brokerage commissions.

    These results are based on each portfolio’s risk/reward adjusted capital allocation. If we were to use a simple 10% allocation per trade, the gains will be +32% on invested capital (vs +19.4%).

    During this month, we traded both directionally and non-directionally via straddles, strangles, straight calls/puts, calendars, double calendars, butterfly spreads and more. We used thorough set of option trading strategies to benefit from volatility and market direction.

    Here is the detailed performance:
    (% figures in the parenthesis is capital allocation)

    Profits: GDXJ +30% (4.5%), SPX (1st) for roughly +14% (7.0%), RSX for +40% (2.1%), FB for +21% (4.4%), TIF for roughly +3.7% (7%) and NKE was closed for +11.7% (12%), GOOG vertical was closed for +20% (6.5%), RHT +2.47% (8.1%), RUT Butterflies +24.4% (9.4%), ACN closed for +1.82%(8.8%), LULU for roughly +11.2% (6.7%), SPX (2nd) for +14% (9.65%) and SPY was almost breakeven.

    Losses – > WAG -2.6% (6.1%), TRV -17% (6.1%)

    OPN Extra (Performance is not part of OPN P&L):
    SPY Puts(2nd time) +30% , GLD and SPY put (first time) were breakeven.

    Option Trading Directionally, or Non-Directionally

    Wait-listing fee is currently waived. NO Profit, NO Fee* offer is still applicable and if you sign-up now, you will have immediate access to all the 20,000+ historical posts, thousands of historical trades with real-time adjustments, market commentary and so on. You will also have access to numerous educational resources.

    Here is a customer feedback on how was his experience with OP Income Newsletter (you may kindly read more here)

    I have been trading for about 16 years witnessing my capital being managed by different brokers. Some brokers were purely option traders and others were stock fund managers. I have had both very good years and bad years but progressively the good years have being vanishing. Last year I decided to start working more aggressively to learn different options techniques and put them to the test. In my search for knowledge I came across the Option Pundit website. On my first month of trading with OP, I made enough money to pay my annual subscription and provided a good boost to my portfolio. Option Pundit is well tuned with the market and exhibit option trading techniques far more sophisticated than my previous options brokers. I am also very impressed with the caliber of many forum members who constantly add valuable comments and information. My experience these first two months with OP have being very enriching and rewarding.

    Luis González
    Thousand Oaks, California, USA

    OptionPundit Income NewsletterEarnings announcement will start from next week. I already have at least 20 companies qualifying as per my preliminary criteria. If you would like to join OP Income newsletter and benefit from this amazing month, kindly click here.

    If you would like to know more, or should you have any questions, please feel to write to us at Ask@OptionPundit.com

    To succeeding together,
    The OptionPundit Team

  • OP Income Newsletter Oct +15.3%

    At OP Income newsletter, the out-performance vs. broader markets continues. For Oct 2013, based on the invested capital (40% of the portfolio), it delivered +15.3% returns. That’s > +6% on the overall portfolio capital. This performance doesn’t include results from OPNExtra! (High risk/ High reward trades) which had a solid run during the month of Oct.

    During this month, the focus was on straddles, strangles, straight calls/puts, calendars, double calendars, butterfly spreads. I chose to not trade condors during October, which in the hindsight turned out to be a good decision as markets went through strong pre and post “debt ceiling debate” moves.

    However, I did trade Implied volatility rush and crush via VIX portfolio.

    Here is the detailed performance:
    (% figures in the parenthesis is capital allocation)

    Profits: RUT Butterfly 1st +26.6% (7.9%), SH +28.8% (3.3%), VIX +15.2% (18.1%), MON (Calendar portion was closed for +20% and Straddle was closed for -3%) (overall 9.78% investment), JPM +11.5% (5.38%), LNKD +24% (7.3%), FNV +28% (2.5%)

    Losses – > DIA was a washout (only 0.6% investment), TSLA butterfly -13.4% [7.6%- (though some members were able to book prices much higher then suggested], RUT Butterfly 2nd (closed 1/2) -24.1% (7.9%) (remaining half is performing well today) and SBUX -3.0% (only 2.8%)

    OPN Extra (Performance is not part of OPN P&L):
    VIX Futures +17.6%, SPY/GOOG puts (no specific trade but it would have been a loss), GOOG pre-earning trade was to be adjusted post earnings which not all the members could benefit from resulting in profit for some and loss for those who couldn’t, NFLX earning trade (breakeven/partial loss), NFLX post earning trade (> +100% gains, the NFLX post earning trade went as high as 20x (of course we were out before that], AAPL puts almost +50%, TSLA~ +50%, AAPL ~40%, TSLA 2nd ~+30%, GOOG ~ +50%, AMZN > +100%, NOK (long term) > +75%, LNKD +100% and more.

    Option Trading Directionally, or Non-Directionally

    Wait-listing fee is currently waived. NO Profit, NO Fee* offer is still applicable and if you sign-up now, you will have immediate access to all the 20,000+ historical posts, thousands of historical trades with real-time adjustments, market commentary and so on. You will also have access to numerous educational resources.

    Here is a customer feedback on how was his experience with OP Income Newsletter (you may kindly read more here)

    Regarding the service in general I would say pretty close to excellent.
    The best part is how truly conservative is OP really worry about capital preservation. Also very nice the way manage the trades in order to avoid big drawdowns. I thank you for having this great service very professional.

    I would highly recommend it to the orient. I’ve been trading for about 7 years and i ve had joined a lot newsletter and no one even close to this one.

    Congratulations and keep it up

    Regards
    Andres, Chile

    OptionPundit Income NewsletterOur Pre-earning set-up continues to deliver strong results. We just closed FOSL and TSLA for good yield. There are more set-up brewing during the next few days. If you would like to join OP Income newsletter, kindly click here.

    If you would like to know more, or should you have any questions, please feel to write to us at Ask@OptionPundit.com

    To succeeding together,
    The OptionPundit Team

  • Numbers Speak Louder than Words

    Since its humble beginning in 2007, OptionPundit has developed a solid track record of producing outstanding returns. Our aim has always been to add value for our members regardless of Bull or Bear Market and current market is no exception. Yes, we don’t really care as OPNewsletter uses non-directional trading approach for trading options. What we care about is preservation of capital, profitable and consistent trading approach.

    Let’s look at how we did during last earning cycle-

    • AMZN +30%,
    • LNKD +50%,
    • SNDK -7%
    • IBM -5%,
    • JPM +10%,
    • YUM -3%
    • TSLA +50%,
    • WFM +9%
    • PCLN +38%
    • GOOG +20%
    • NFLX +30%
    • AMZN (again) +32%

    And many more. Each trade can be checked and verified. These performances are based on the member’s fills unlike other newsletter which might use theoretical or model values. All of these trades were held for less than 9 days and were non-directional in nature.

    More than 500 companies will be announcing earnings soon. Are you ready to take full advantage of current market conditions?

    Wait-listing fee is currently waived. NO Profit, NO Fee* offer is still applicable and if you sign-up now, you will have immediate access to all the 20,000+ historical posts, thousands of historical trades with real-time adjustments, market commentary and so on. You will also have access to numerous educational resources.

    We trade NON-directionally, via spreads for mostly income strategies. For earning season, we shift focus towards capitalizing on changes in the implied volatility and use that to structure our trades that benefits from both IV rise and drop.

    Option Trading Directionally, or Non-DirectionallyShould you have any questions, please feel free to write to us at Ask@OptionPundit.com

    Profitable Trading, OP

  • Outperformance Continues, OPN Aug +20.5%

    At OP Income newsletter, the out-performance vs. broader markets continues. For Aug 2013, based on the invested capital (60% of the portfolio), it delivered +20.5% returns. That’s > +12% on the overall portfolio capital. And we also warned about the sell-off before it started thus helping members position for the pullback in advance.

    At OP Income newsletter we care about preservation of capital and we use a profitable and consistent trading approach. Just like thousands of trades done during the past 65+ months, each trade has a different capital allocation, and can be checked and verified together with all the adjustments and supporting comments.

    That’s volatility and non-directional trading at best.

    During Aug we opened multiple mini-portfolios one several underlying e.g. VIX, SPY, RUT, DIA, IBM, USO, LNKD, AMZN, PCLN, VXX, TSLA, GMCR, ADSK and ANF. Overall, it was another fantastic month an we are confident to deliver 2x SPX returns in 2013.

    Wait-listing fee is currently waived. NO Profit, NO Fee* offer is still applicable and if you sign-up now, you will have immediate access to all the 20,000+ historical posts, thousands of historical trades with real-time adjustments, market commentary and so on. You will also have access to numerous educational resources.

    Here is a customer feedback on how was his experience with OP Income Newsletter (you may kindly read more here)

    I just wanted to thank you for the awesome job you’ve done providing very profitable trades consistently in your newsletter month after month ! When I first saw the results you were posting on your website I must admit I was a little skeptical that this was for real but after signing up and taking the trades since last year I am now a believer. I also like the way you answer our questions and are willing to share your knowledge with us. To me this is much more than just a newsletter, we are making money as we are learning ! Thank-you very much.Please feel free to use me as a reference to anyone who would like to speak to a current subscribe”

    Chris Lekas,
    Dania Beach, Florida USA

    OptionPundit Income NewsletterOur pre-earning set-ups continues to deliver strong results and so are the OPN Extra! (Non-OPN) trades. In fact, I just posted on twitter our FB trade that delivered +15% return in matter of hours. We have 5-6 more earnings trades coming up soon within this month. You may want to get join now so that you are well prepared for the next round of earnings.

    If you would like to know more, or should you have any questions, please feel to write to us at Ask@OptionPundit.com

    To succeeding together,
    The OptionPundit Team

  • Trading Options at Expiration for Big Gains

    Trading Options at Expiration can bring big gains. How?

    Equity and index options expires on Fridays (weeklies) and third Fridays of each month (for monthlies). As options expiration approaches, time value component of the option price approaches to zero creating a multiple trading opportunities. Jeff Augen has actually written a complete book on trading options at expiration. That excellent book can introduce you to many strategies that you can use to trade price distortions that appears on expiration day.

    However, at OptionPundit, we would like to trade Options at Expiration especially when it coincides with Earnings announcement thus increasing our chances of success. For information, We trade all kinds of earning trades and been doing so for almost 28 quarters!!

    1. Pre-earning Direction and Volatility based Options Trading
    2. Through earning and
    3. Post earning Options Trading

    Usually Pre and through earnings fall into “income trading” and #3 falls into as we define “speculative trading”. The reason why it is called speculative because though risk/rewards are huge but the occurrence of a succesful event is not sure (even though we have a large winning ratio).

    Here is an example of our very recent trade on Google (GOOG) which generate +278% to +372% gains, all within a day!

    User-1: +278% gains

    Trading Options at Expiration

    And from user-2: +372% gains

    Trading Options at Expiration

    So how did we do it?

    It is actually a simple strategy where we purchased an Out of the Money Strangle on GOOG after earnings were announced. Based on our assessment, we reviewed that GOOG’s post earning move will be sufficient to pay for owning a strangle.

    What is a strangle option strategy-

    The long strangle, also known as buy strangle or simply “strangle”, is a market neutral strategy in options trading that involve the simultaneous buying of out-of-the-money put and a out-of-the-money call of the same underlying stock and same expiration date.

    The long options strangle is an unlimited profit, limited risk strategy.  If you have any questions pertaining to this STRANGLE strategy, please feel free to e-mail me at-> ask@OptionPundit.com and I shall be glad to answer your questions.

    Trading such strategies is just one of the strategies that we use to capitalize on opportunities in Options market. And in fact, we don’t even count these profits into our official OP Income Newsletter performance.

    Our primary focus is to trade market neutral income generating spreads for example Credit spread, Iron Condors, Calendar spreads, Back Spreads, Butterfly spreads and many more in a way that increases our probability of success as we structure our trades using Implied volatility as main factor (not direction).

    Option Trading Directionally, or Non-Directionally

    If you would like to benefit from our 65+ months’ experience to find such trades and grow your profits steadily, you may want to join our OP Income Newsletter. Currently there is no waiting list Fee and you will have immediate access of all historical trades, adjustments, commentary etc.

    Profitable Trading, OP