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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



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.


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.

Updated Daily Options Trading Strategy (DOTS) List of Stocks Used – Current as of 10/13/17

Here is the updated list of stocks used in the Daily Options Trading Strategy, current as of 10/13/17:




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


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