90% of my portfolio is allocated to income trades. After finding opportunities only for 40% of portfolio so far, yesterday I was quite busy looking for good plays for March cycle and for the February expiration week. While I am happy with what I have invested so far but the search is on for more good income trades. Following my portfolio allocation guidelines, I didn’t invest more in the same trades even though I couldn’t find more opportunities. My March RUT Iron Condor is already delivering good profits giving me >20% of the credit within a week of opening the trade. Though there is still a long way in building wealth, I haven’t lost a single RUT Iron condor since I started trading Russell 2000 in October 2006. Average returns had been well above my desired target i.e. >20% per trade.
There will be lot of buzz in the market this week as this is Feb Options’s expiration week and it offers several fabulous opportunities. I am surely looking for some nice plays including Google. This will be a great week from risk/reward point of view to all those chartists who want to play directional trades via spreads because the spread cost will be less compared to other calendar weeks (except in the case of straddles and strangles for the ones that are going to announce earnings). There are lot of stocks that are going to see market activities due to earnings specially EYE, EXPD, NDAQ, MMM, NVDA, etc. Check out ivolatility to find out which ones are expected to move a lot.
For today’s free tool for the OP readers, checkout the revamped beta site of briefing.com (the free one). For those who want to know, I have not signed-up for any packages nor have I affiliated with them. I like the free stuff and their free site meets my need. Of course there are no free lunches so the site is full of advertisements. OP is on the lookout for opportunities, if you find some, don’t forget to share, Profitable trading, OptionPundit