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Daily Options Trading Strategy (DOTS) Updated List – 1/19/16

Here is the current (4) tier list of the Daily Options Trading Strategy, current as of 1/19/16:

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

Tier 2: BA, BABA, GPRO, IBM, CRM, TWTR, CHK, BBY, AKAM

Tier 3: C, MNST, PYPL, GDDY, EBAY, CMG, FIT, EXPE, STZ

Tier 4: , DIS, BWLD, CAT, FDX, HD, SHAK, COST, SNDK, ULTA

Earnings Trade of the Week: Intel Corp. (INTC) – Reports After The Markets Close – 1/14/16

Intel Corporation (INTC) is scheduled to report earnings after the markets close on Thursday, January 14, 2016.

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


Oct 14, 2015


31.39

32.93
30.85
32.80
75,954,800
32.57

Oct 13, 2015

32.03
32.48
31.98
32.04
35,588,600
31.82

(INTC) is a stock that historically does not make too much of a price move after reporting earnings. Also, tomorrow is expiration Friday, so using a strategy that takes advantage of time-decay and a lack of a large price move is the right strategy to use. For this trade, I will be placing a Neutral Calendar Spread. The current Implied Volatility On the January 2016 expiration (the sell side) is at 114, while the February expiration is only 31. This is always important when looking at the Neutral Calendar Spread: the discrepancy in the IV. It is a great indicator to show an overpriced option (the sell side). I am giving this trade a 10/10. It should profit immediately tomorrow morning, which is when I plan to close it out.

Here is how the trade is placed:

Entered Trade

Sell -25 INTC Jan16 32 Call

Buy 25 INTC Feb16 32 Call


Requirements

Cost/Proceeds

$925.00

Option Requirement

$0.00

Total Requirements

$925.00

Estimated Commission

$75.00


Greeks / NBBO

IV

INTC Jan16

32 Call

0.88

0.91

114.31

INTC Feb16

32 Call

31.30


NBBO
0.35 – 0.41. Try to pay 0.38 or less for this trade. At a maximum, pay up to 0.40. See the attachment for the profit/loss chart.

INTC NCS 11416

I will post the close order price tomorrow pre-market before the opening bell.

Update 1: 9:20 am EST: Pre-market, the stock is down 2.10 a share. I am expecting the stock to make a recovery during the day. I am placing the order to close this trade out at 0.65. I will update any changes here, if needed.


Update 2: 0.60 STC

Update 3: STC at 0.50.

Great Start Trading The New Year – Daily Options Trading Strategy (DOTS) – 1/4/16

Yesterday, we had 4 Daily Option Trading Strategy (DOTS) trades, all positions closed out. Each trade was a call position, showing that even in rough market conditions, the DOTS strategy does extremely well. 2008 and 2009 were some of my best years trading, providing plenty of call trades daily. The sell-to-close (STC) orders above the price paid per contract were increased on each trade more than the average, as the current market volatility will provide this. You can see my trade log for the times the trades were placed and the STC price for each trade.

2016 Market & Volatility Expectations – Daily Options Trading Strategy (DOTS)

I am expecting the markets to have a down year overall, with a lot of volatility daily. When using the Daily Options Trading Strategy (DOTS), I actually prefer this, as it tends to bring a lot more daily trades. I especially prefer when the markets open down, as there will always be more call buying opportunities, and the DOTS strategy does have more call trades than put trades on a percentage basis. This type of market volatility also brings increased sell-to-close (STC) orders. The DOTS strategy is unique in the sense that its performance is not based on how the markets overall are trading. It spots daily lows and highs extremely well. The key to the strategy is patience and not having a trigger-finger. However, when the 4 bottom indicator numbers and Bollinger Bands are all aligned for a trade, it must be made.

A few stocks on the DOTS list I like to move up this year are: FitBit (FIT), Twitter (TWTR, see a buyout possibility), and Alibaba (BABA).

For those unfamiliar with my subscription service, my daily Skype/Chatzy part of the subscription provides, in real-time, the DOTS trades I make. Before each trade, I provide the ticker symbol I am watching for a possible trade. This is when the Bollinger Bands start to expand and the indicator numbers are getting closer to a buy point. Once a trade is near, I once again provide the ticker symbol, the strike price, expiration date, my sell-to-close order (above the price paid per contract). Once an order is filled, the group chat and I provide what they paid per contract.

I also take questions all day from my subscribers via the mainchat or through personal Instant Messaging on Skype. It is very community-based.

The subscription also includes access to my Trading Forum, where I post my earnings trades, weekly trades, and long-term trades. These are great sources for added income.

All subscription plans come with a one week, money back guarantee if you are not happy with the service, no questions asked. If you have any questions, you can e-mail me at: kmob79@gmail.com.

Thanks, and Happy New Year.

-Kevin

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