We have had two very good Daily Options Trading Strategy (DOTS) trades today. (NFLX) at 10:13 am EST, $0.35 sell to close order above price paid (paid $4.70, sold at $5.05), and (GOOGL) at 11:01 am EST, $1.00 sell to close order above price paid (groupchat paid an average of $14.70, sold at $15.70. GOOGL took off right after being placed.
Many of the DOTS trades trades actually go for a much higher sell to close price daily if held longer, but I am more interested in making a very nice profit fast, and move on to the next trade. In and out. For example, the GOOGL trade today netted a 6.8 % ROI, but could have been sold much higher if held even 20 minutes longer. But the goal of the strategy is to exit as fast as possible and to not be greedy.
Stocks like (TWTR) tend to average at least a 10% per DOTS trade. This is because on average, a TWTR call or put option is less than $2.00 per contract, and I use minimum $0.20 order above the price paid per contract. However, the higher priced stocks, like (NFLX),(GOOGL), (TSLA), (AMZN), (BIDU), etc, have higher sell to close orders, and tend to close out a lot faster than lower-priced stocks, but not always.
The STC prices I use are based on numerous factors:
– The stocks share price
– The volatility of the stock itself
– Option liquidity (daily)
– Time of day the trade is placed (i.e. I will use a higher STC earlier in the day and a lower STC after 1:00 pm EST)
You can see my daily trade log at: http://kevinmobrien.com/?page_id=480
My subscription-based service provides all of these trades in real-time, with the ticker symbol, strike price, my sell-to close orders used (before the trade is even placed), and when the trade is closed out.
If you have any questions about the strategy, subscription plan, or about stock options, you can e-mail me at: email@example.com or firstname.lastname@example.org