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Updated Daily Options Trading Strategy Lists – 10/14/14

Tier 1 :

Apple (AAPL), CF Industries (CF), Baidu (BIDU), Google (GOOGL), Tesla Motors (TSLA), LinkedIn (LNKD), Amazon.com (AMZN), Netflix (NFLX), The Priceline Group (PCLN)

Tier 2:

Keurig Green Mountain (GMCR), Alibaba Group Holdings (BABA), F5 Networks (FFIV), Twitter (TWTR), SanDisk (SNDK), Wynn Resorts (WYNN),  Facebook (FB), Boeing (BA), Chipotle Mexican Grill (CMG)

Tier 3

Caterpillar (CAT),  FedEx Corp. (FDX), Visa (V), Citigroup (C), Zillow (Z), Yelp (YELP), Lululemon (LULU), Visa (V), Bank of America (BAC)

Daily Trade Log for the Week of 10/6/14 – 10/10/14

 

  • Monday, 10/6/14. SNDK at 9:43 am EST. 0.30 STC order above price paid/contract. (group chat trade)
  • Monday, 10/6/14. BIDU at 10:26 am EST. 0.50 STC order above price paid/contract.
  • Tuesday, 10/7/14. SNDK at 10:31 am EST. 0.30 STC order above price paid/contract.
  • Tuesday, 10/7/14. AAPL at 11:30 am EST. 0.30 STC order above price paid/contract.
  • Tuesday, 10/7/14. GMCR at 1:00 pm EST. 0.50 STC order above price paid/contract.
  • Wednesday, 10/8/14. BIDU at 11:01 am EST. 0.50 STC order above price paid/contract.
  • Wednesday, 10/8/14. FB at 11:03 am EST. 0.20 STC order above price paid/contract.
  • Wednesday, 10/8/14. TWTR at 11:05 am EST. 0.20 STC order above price paid/contract (Skype chat trade posted and made. I got BIDU and FB).
  • Thursday, 10/9/14. BIDU at 11:45 am EST. 0.50 STC order above price paid/contract.
  • Thursday, 10/9/14. AMZN at 12:25 am EST.  0.60 STC order above price paid/contract.
  • Thursday, 10/9/14. AAPL  at 12:33 am EST. 0.20 STC order above price paid/contract.
  • Friday, 10/10/14. FB at 10:09 am EST. 0.20 STC order above price paid/contract.
  • Friday, 10/14/14. TWTR at 10:30 am EST, 0.20 STC order above price paid/contract
  • Friday, 10/14/14. TSLA at 10:20 am EST. 2.00 STC order above price paid/contract.

 

Volatility Is Back!! Great Trades This Week

This week has been great for trading, volatility is plentiful, and we are getting multiple trades daily, and expect this to continue. Please see my Trade Log link here: http://kevinmobrien.com/?page_id=480 to see the times these trades were placed and our sell-to-close order placed above the buy price.

Also, I am offering any new subscriber who signs up a guarantee that if you are not happy with the service after one full week, I will gladly refund your money— no questions asked.

 

Daily Trade Log

I am posting all my daily trades at this link on the website, http://kevinmobrien.com/?page_id=480.

I am including the date, time the trade was placed, the strike price, expiration, and my sell-to-close order price above what I paid for each contract.

It’s a good way to go back and look to see if you missed something and what I am trading. If you have any questions, let me know. Thanks.

Updated Daily Options Trading Strategy Lists – 9/9/14

Tier 1 :

Apple (AAPL), CF Industries (CF), Baidu (BIDU), Google (GOOGL), Tesla Motors (TSLA), LinkedIn (LNKD), Amazon.com (AMZN), Netflix (NFLX), The Priceline Group (PCLN)

Tier 2:

Keurig Green Mountain (GMCR), International Business Machines (IBM), F5 Networks (FFIV), Twitter (TWTR), SanDisk (SNDK), Wynn Resorts (WYNN),  Facebook (FB), Boeing (BA), Chipotle Mexican Grill (CMG)

Tier 3

Caterpillar (CAT),  FedEx Corp. (FDX), Visa (V), Citigroup (C), Zillow (Z), Yelp (YELP), Lululemon (LULU), Visa (V), Bank of America (BAC)

 

Free Trade of the Week: Keurig Green Mountain (GMCR) – Earnings Trade – After the markets close 8/6/14

Keurig Green Mountain (GMCR) – Earnings Trade – After the markets close 8/6/14

Keurig Green Mountain, Inc. (GMCR) is scheduled to report earnings after the markets close on Wednesday, August 6, 2014.

This is a stock that has consistently made large price moves quarter after quarter when reporting earnings, as this shows:

May 8, 2014 97.89 108.22 96.25 104.19 8,678,400 103.98
May 7, 2014 95.31 95.56 90.35 92.21 3,352,900 92.03

Now that the share price is even higher, we should see a large move once again. There is an 8% short float on this stock, which can be beneficial with volatile stocks such as GMCR, as short sellers will cover on any move up or short it more on any downturn. GMCR is almost always a must-play earnings trade, as not too many stocks move like it does in terms of percentage. For this reason, I will be placing a Strangle strategy. The trade is not inexpensive, by any means, as the IV increases dramatically leading up to earnings and the historical volatility also plays a role in the cost of the trade. Still, this is a solid 9/10. This trade has the potential to be a major homerun.

Here is how the trade is placed:

Entered Trade

Buy 8 GMCR Sep14 130 Call
Buy 8 GMCR Sep14 110 Put

Requirements

Cost/Proceeds $5,920.00
Option Requirement $0.00
Total Requirements $5,920.00
Estimated Commission $24.00

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
GMCR Sep14
130 Call 3.65 3.75 45.16 261.29 15.39 119.73 -62.22
GMCR Sep14
110 Put 3.65 3.80 47.87 -221.98 13.50 111.27 -59.72
Net 39.31 28.89 231.00 -121.94

NBBO 7.30 7.55. Try to pay 7.45 or less for this trade, and a maximum of 7.75.

Free Earnings Trade of the Week: Whole Foods Market (WFM) – After the markets close 7/30/14

Whole Foods Market (WFM) – Earnings Trade – After the markets close 7/30/14

Whole Foods Market, Inc. (WFM) is scheduled to report earnings after thre markets close on Wednesday, July 30, 2014.Last quarter, the stock made a huge price move after reporting, as this shows:

May 7, 2014 39.28 39.48 37.31 38.93 49,122,000 38.81
May 6, 2014 48.33 48.54 47.87 47.95 9,435,700 47.80

The stock has really taken a beating lately, near a 52-week low. I do see this stock making a decent move today, somewhere around $3.00 – $4.00 tomorrow.

This trade is so cheap to place my eyes lit up when I put it through the trade calculator. Simply put, there is really little risk associated with this trade. It will hold value. 9/10. I should have placed this earlier, as it was going for a lot less than it is now.

This trade will once again be the Neutral Calendar Spread used two (2) times, just like the AMZN and PNRA trades.

Here is how the trade is placed:

Entered Trade #1: WFM

Sell -50 WFM AugWk1 42 Call
Buy 50 WFM Aug14 42 Call

Sell -50 WFM AugWk1 34 Put
Buy 50 WFM Aug14 34 Put

Requirements

Cost/Proceeds $1,300.00
Option Requirement $0.00
Total Requirements $1,300.00
Estimated Commission $300.00

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
WFM AugWk1
42 Call 0.47 0.51 148.56 -1,076.71 -347.41 -41.44 1,540.19
WFM Aug14
42 Call 0.61 0.69 58.92 1,230.67 333.71 126.30 -233.76
WFM AugWk1
34 Put 0.31 0.33 154.72 686.19 -250.37 -31.10 1,202.41
WFM Aug14
34 Put 0.38 0.44 59.73 -776.35 249.16 95.60 -177.56
Net 63.80 -14.91 149.36 2,331.28

NBBO 0.15 0.35. Try to pay 0.25 or less combined for both sides of the trade, and a maximum of 0.28. See the attachment for the profit/loss chart.

WFM NCS 2 73014

Free Trade of the Week: Harley-Davidson, Inc. (HOG) – Earnings Trade – Before the markets open 7/22/14

Harley-Davidson, Inc. (HOG) is scheduled to report earnings before the markets open on Tuesday, July 22, 2014.

This stock has always been a consistent winner for earnings trades.For whatever reason, the option strike prices are inflated, always expecting a large price move. While last quarter that did somewhat happen, it is very unusual for this stock to do so. This is an excellent stock for the Neutral Calendar Spread. Here are their last 4 quarters of movement after reporting earnings:

Apr 22, 2014 72.51 73.50 71.35 71.87 5,835,700 71.59
Apr 21, 2014 65.97 67.69 65.97 67.54 1,458,700 67.28

Jan 30, 2014 66.31 66.69 62.21 63.19 2,822,000 62.68
Jan 29, 2014 64.10 65.05 63.74 64.04 2,142,200 63.52

Oct 22, 2013 66.07 66.49 63.76 64.71 2,475,000 63.99
Oct 21, 2013 66.00 66.04 65.08 65.57 1,921,200 64.84

Jul 25, 2013 57.47 59.52 55.57 55.74 3,183,600 54.93
Jul 24, 2013 56.11 56.40 55.40 55.86 1,506,700 55.05

I am giving this trade a 9/10. The only negative is that is could be a little less expensive, was looking for around 0.50.

Here is how the trade is placed:

Entered Trade

Sell -25 HOG Aug14 67.5 Call
Buy 25 HOG Sep14 67.5 Call

Requirements

Cost/Proceeds $1,525.00
Option Requirement $0.00
Total Requirements $1,525.00
Estimated Commission $75.00

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
HOG Aug14
67.5 Call 1.91 2.02 30.39 -1,224.58 -186.82 -175.10 108.54
HOG Sep14
67.5 Call 2.46 2.68 26.21 1,224.04 140.43 270.13 -61.05
Net -0.54 -46.39 95.03 47.49

NBBO 0.44 0.77. Try to pay 0.61 or less for this trade. At a maximum, pay 0.64.

HOG NCS 72214

Updated Daily Options Trading Strategy Lists – 6/8/14

Tier 1 :

Apple (AAPL), CF Industries (CF), Baidu (BIDU), Google (GOOGL), Tesla Motors (TSLA), LinkedIn (LNKD), Amazon.com (AMZN), Netflix (NFLX), Priceline Group (PCLN)

Tier 2:

Keurig Green Mountain (GMCR), International Business Machines (IBM), F5 Networks (FFIV) , Polaris Industries (PII), Twitter (TWTR), SanDisk (SNDK), Wynn Resorts (WYNN),  Facebook (FB), Goldman Sachs (GS),

Tier 3

Caterpillar (CAT),  FedEx Corp. (FDX), Charter Communications (CHTR), Monsanto (MON), PVH Corp (PVH), Wynn Resorts (WYNN), Visa (V), Boeing (BA), Cummins Inc. (CMI)

Tier 4:

Yelp (YELP), Lockheed Martin (LMT), Fossil (FOSL),  Zillow (Z), Citigroup (C), United Parcel Service (UPS), Precision Castparts (PCP), Ralph Lauren (RL), Salesforce.com (CRM)

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