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Very Busy Trading Day on Tuesday, 1/16/18

While the markets opened up very high to start out, eventually there was a significant drop later in the afternoon. I did get in a couple of successful early trades, there were so many opportunities later, I actually missed a couple of them as they were happening simultaneously. In situation like this, I look at which stock is more volatile, the width of the Bollinger Bands (from low to high, and vice versa) and the strike price bid/ask differential and strike price volume.

With the Daily Options Trading Strategy (DOTS), which I developed, my ideal sell-to-close price above what was paid per contract, is at least 10 % gain per trade. However, it is common to net at least 15 % + per trade, others 7% if the trade is taking a little bit longer than expected.

All of the trades posted below were exited extremely fast from the time of entry.

Here are the trades placed on Tuesday, January 16, 2018:

857. Tuesday, 1/16/18. BIDU at 9:40 am EST. 0.25 STC order above price paid/contract. January 265.00 puts. Paid 4.75 per contract (there was a wider bid/ask price than usual, so I sold early, original 0.60 STC.
858. Tuesday, 1/16/18. SQ at 9:56 am EST. 0.15 STC order above price paid/contract. January 40.00 calls. Paid 0.68 per contract.
859. Tuesday, 1/16/18. BABA at 10:21 am EST. 0.26 STC order above price paid/contract. January 190.00 calls. Paid 1.84 per contract.
860. Tuesday, 1/16/18. GOOGL at 1:04 pm EST. 1.00 STC order above price paid/contract. January 1130.00 calls. paid 8.20 per contract.
861. Tuesday, 1/16/18. BABA at 2:03 pm EST. 0.18 STC order above price paid/contract. January 185.00 calls. paid 1.40 per contract.
862. Tuesday, 1/16/18. NVDA at 2:18 pm EST. 0.25 STC order above price paid/contract. January 220.0 calls. paid 2.10 per contract.

This week is still somewhat slow in terms of earnings trades, with a lot of bank/financial earnings still due, but next week really picks up. Along with the DOTS strategy, earnings trades are a great source of generating income, and require much less stock/chart monitoring.

All subscription plans include access to my Skype chatroom, where I post my Daily Options Trading Strategy real-time trade alerts. All subscription plans also include full access to my Trading Forum, which is where I post all of my earnings, weekly, and long-term trades.

If you have any questions, you can e-mail me anytime at: kmob79@gmail.com

Thanks.

-Kevin

Double Neutral Calendar Spread Strategy Placed on Red Hat (RHT) Today, 12/19/17 – After The Markets Closed

Red Hat, Inc. (RHT) has always been a good stock to use the Double Neutral Calendar Spread strategy with. As I posted on my Trading Forum page, where I post all earnings trades I place, (RHT) reported earnings after the markets closed today:

Here is the Profit/Loss Chart for this (RHT) trade:

Currently, as of 5:54 pm EST, the stock is down about $5.20 a share:

One of the main things I stress when trading and teaching about earnings trades is to use a neutral-based approach. For example, Red Hat (RHT) actually had a very good quarter, beating on revenue and earnings. This does not always matter when trading earnings releases. There are many factors that may move a specific stock: future guidance is always one of the most important.

After-hours, on the same hand, is not always an accurate prediction as to how the stock will trade the when the markets open the following morning. However, if the stock should stay in the same range as it is now, this trade looks to be a very nice winner. I paid a net debit of $1.05.

I will post an update tomorrow as to how the trade worked out. This trade does expire this coming Friday, and will all earnings trades, I like to exit as soon as possible, but will also let the time-decay factor work in my favor if I see that a lot more value can be gained by doing so.

This strategy, and all of my earnings-based trades are posted on my Trading Forum webpage.

I am currently offering a great discount on all subscription plans until December 5, 2017.

If you have any questions about this strategy, or any others, you can e-mail me at: kmob79@gmail.com

Also, if you are interested in a free PDF copy of my book on Bollinger Bands, e-mail me and I will send you a copy.

Thanks.

Update 1: 12/20/17 at 9:45 am EST: Trade is looking excellent. Will update when the positions are closed out.

Update 2 9:55 am EST: The Call Side position closed at $0.35. Will update when the Put Side position is closed.


Update 3: 10:44 am EST. The Put Side of this trade is currently has a bid/ask price of $0.70 – $1.70, which will narrow out shortly. Trade is in a great position here, right near the put strikes. Time-decay will keep increasing value.


Update 4: 3:35 pm EST. I will be closing the Put Side position tomorrow to let the time-decay factor add even more value. The current Greeks/NBBO on (RHT) trade:

I will also provide a follow-up to this specific trade, why I chose the strikes I did, the expiration dates, and philosophy of the strategy itself. Soon, I will be writing a book on the Double Neutral Calendar Spread strategy that will go into my past trades over the years using it, when to take advantage of it, and why I feel it is one of the best earnings strategies there is. Follow up tomorrow when the position is closed.

Final Update: 12/22/17. The entire position has been closed out a net credit of $2.00.

Very Busy Trading Day on Tuesday, 9/5/17

Today was a very busy trading day, 7 out of 7 winners. Even when the markets are down, the Daily Options Trading Strategy (DOTS) holds up extremely well. I actually prefer that the markets open down with the strategy, as it provides more call option buying opportunities. On average, each DOTS trade nets from 5% – 10% per trade, with an average of 7.5%. However, 15% winners are not uncommon depending on the charts, especially the Bollinger Band width and time of day.

Here are the trades for Tuesday, 9/5/17.

830. Tuesday, 9/5/17. NVDA at 9:39 am EST. 0.60 STC order above price paid/contract. September 165.00 calls. Paid 5.01 per contract.
831. Tuesday, 9/5/17. AMZN at 9:44 am EST. 1.10 STC order above price paid/contract. September 970.00 calls. Paid 12.60 per contract.
832. Tuesday, 9/5/17. BA at 10:57 am EST. 0.50 STC order above price paid/contract. September 235.00 calls. Paid 4.00 per contract.
833. Tuesday, 9/5/17. AAPL at 11:20 am EST. 0.40 STC order above price paid/contract. September 160.00 calls. Paid 4.35 per contract.
834. Tuesday, 9/5/17. NVDA at 12:13 pm EST. 0.35 STC order above price paid/contract. September 165.00 calls. Paid 3.80 per contract.
835. Tuesday, 9/5/17. AAPL at 12:16 pm EST. 0.09 STC order above price paid/contract. September 160.00 calls. Paid 4.00 per contract.
836. Tuesday, 9/5/17. AMZN at 12.19 pm EST. 1.00 STC order above price paid/contract. September 960.00 calls. Paid 14.30 per contract

You can also see my trade log at at the top of the homepage.

I am offering an end of summer subscription discount on all plans. You can see more about that on my post earlier today.

Also note that I do offer a free copy of my book on Bollinger Bands specifically, a nice complement to my main book on the Daily Options Trading Strategy. Just e-mail me to request the book, and I will send you a PDF file of it.

If you have any questions, you can e-mail me anytime at: kmob79@gmail.com

Thanks.

Subscription Discount – September 5, 2017 – September 12, 2017

I am offering subscription discounts on all plans from Tuesday, September 5, 2017 until September 12, 2017.

Here are the discounted rates:

One Week Subscription – $39.99

One (1) Month Subscription – $119.99

Three (3) Month Subscription – $299.99

Six (6) Month Subscription – $499.99

One (1) Year Subscription – $699.99

Lifetime Subscription – $899.99

All subscription plans include real-time trading alerts on Skype using my Daily Options Trading Strategy (DOTS) and access to the Trading Forum, where I post weekly, earnings, and long-term trades.

All subscriptions come with a full one week money back guarantee if you are not satisfied with the service.

If you have any questions, you can e-mail me at: kmob79@gmail.com.

Thanks again.

Updated List of Stocks Used – Daily Options Trading Strategy (DOTS) – 4/21/17

Here is the current list of stocks used for the Daily Options Trading Strategy (DOTS), current as of 4/21/17:

Tier 1: AAPL, AMZN, BIDU, BABA, GOOGL, FB, NFLX, PCLN, TSLA

Tier 2: BA, MA, TWTR, CMG, NUGT, NVDA, ULTA, C, MU

Tier 3: CAT, GPRO, RHT, LULU, SWKS, EXPE, CRM, SQ, AKAM

Tier 4: ADBE, WYNN, X, ATVI, MOMO, PX, FDX, STZ, PYPL

Key additions: MA, MU, SWKS, ADBE, X, MOMO, PYPL

I am offering a discount on all subscription plans until this Sunday, 4/23/17, and will match any subscription plan that is three (3) months or longer.

If you have any questions, you can e-mail me at: kmob79@gmail.com

Thanks.

-K

Free Earnings Trade of the Week: Activision Blizzard, Inc. (ATVI) – Reports After the Markets Close 2/9/17

Activision Blizzard, Inc. (ATVI) is scheduled to report earnings after the markets close on Thursday, 2/9/17.

Last quarter, the stock had the following price movement after reporting earnings:


Nov 03, 2016

42.96
43.67
42.63
43.37
43.37
12,822,700

Nov 02, 2016

42.63
43.09
42.26
42.60
42.60
7,792,900

The current Implied Volatility on the weekly at-the-money strike price is at 175, which is extremely high. The at-the-money March 2017 strike price is at 36, so there is a major difference. The Neutral Calendar Spread is the strategy to use here. Everything looks good about it: weekly options, price to place the trade, wide break-even points, break-even points, and the high IV on the weekly at-the-money strike price. 9.5/10, trade of the week.

Here is how the trade is placed:

Entered Trade

Sell -20 ATVI FebWk2 40 Call

Buy 20 ATVI Mar17 40 Call

Requirements

Cost/Proceeds
$720.00
Option Requirement
$0.00
Total Requirements
$720.00
Estimated Commission
$50.00

NBBO -0.29 – 0.43. Try to pay 0.37 or less for this trade. at a maximum, pay up to 0.38. See the attachment for the profit/loss chart. I will post the price to close this trade out right before the markets open tomorrow.

Update #1: 9:20 am EST – Pre-market, the stock is up about $4.70/share, but do expect the share price to fall. I am placing the price to close this trade out at $0.60 (net credit). I will update any changes here throughout the day.

Update #2: STC (net credit) now at 0.50.

Updated Daily Options Trading Strategy (DOTS) List of Stocks Used – 1/11/17

Here is the current list of stocks used for the Daily Options Trading Strategy (DOTS), current as of 1/11/17:

Tier 1: AAPL, AMZN, BIDU, BABA, GOOGL, FB, NFLX, PCLN, TSLA

Tier 2: BA, BWLD, TWTR, CMG, NUGT, NVDA, ULTA, C, SQ

Tier 3: CAT, GPRO, RHT, LULU, LMT, EXPE, CRM, DIS, AKAM

Tier 4: COST, FSLR, BBY, DUST, HD, PX, FDX, STZ, UPS

Any questions on the strategy or stock options? You can e-mail me at: kmob79@gmail.com

New Year’s Discounted Subscription Rates – January 4, 2017 Through January 11, 2017

I am offering a discount on all Subscription Plans until January 11, 2017. Earnings will be picking up soon, as well, so should get plenty of these trades including the Daily Options Trading Strategy (DOTS). Each subscription plan includes all of these strategies, including weekly debit spread trades.

Here are the following discounted rates:

One (1) Month Subscription – $129.00
Three (3) Month Subscription – $299.00
Six (6) Month Subscription – $449.00
One Year Subscription – $699.00
Lifetime Subscription – 999.00

If you have any questions about trading stock options or the subscription service, you can e-mail me anytime at: kmob79@gmail.com

Free Earnings Trade of the Week: Big Lots, Inc. (BIG) – Reports Earnings Before the Markets Open 12/2/16

Big Lots, Inc. (BIG) is scheduled to report earnings before the markets open on Friday, 12/2/16.

Last quarter, the stock had the following price movement after reporting earnings:

Aug 26, 2016

54.47
54.99
50.12
50.57
4,571,200
50.36

Aug 25, 2016

53.93
55.00
51.49
52.94
3,308,700
52.72

(BIG) has never been too volatile of a stock post earnings, but it is often priced to do so. This trade, a Neutral Calendar Spread, carries minimal risk at the price to place this trade, and has extremely wide break-even points on the profit/loss chart. There are no weekly options, but not is not that much of an issue at all here. This is a very solid trade, should do very well. 9.5/10.

Here is how the trade is placed:

Entered Trade

Sell -25 BIG Dec16 50 Call

Buy 25 BIG Jan17 50 Call

Requirements

Cost/Proceeds
$1,200.00
Option Requirement
$0.00
Total Requirements
$1,200.00
Estimated Commission
$62.50

NBBO 0.35 – 0.70. Try to pay 0.53 or less for this trade. At a maximum, pay up to 0.57. See the attachment for the profit/loss chart. I will post the price to close this trade out tomorrow morning, right before the opening bell.

big-ncs-12116

Update 1: 9:20 am EST – Pre-market, the stock is up about $1.90/share. If it hangs around this range or moves down more, should be a great trade. I am placing the price to close this trade out (net credit) at 1.40 for now. I will update any changes here, as needed.

Updated Daily Options Trading Strategy (DOTS) List of Stocks Used – 11/18/16

Here is the current list of stocks used for the Daily Options Trading Strategy (DOTS), current as of 11/18/16:


Tier 1: AAPL, AMZN, BIDU, BABA, GOOGL, FB, NFLX, PCLN, TSLA

Tier 2: BA, BWLD, TWTR, EXPE, NUGT, ULTA, C, CMG, FFIV

Tier 3: SQ, CRM, HD, COST, PX, COST, FDX, STZ, UPS

Tier 4: MA, DUST, AKAM, AKS, BBY, CAT, FSLR, DIS, GPRO

If you have any questions, you can e-mail me at: kmob79@gmail.com

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