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Very Busy Trading Day Using the Daily Options Trading Strategy on Thursday, June 16, 2016.

Today, 6/16/16, was a very busy day using the Daily Options Trading Strategy (DOTS). Here is the list of trades made and closed out already.

550. Thursday, 6/16/16. TSLA at 9:41 am EST. 0.70 STC order above price paid/contract. July 215.00 calls. Paid 9.85 per contract.
551. Thursday, 6/16/16. BA at 9:51 am EST. 0.25 STC order above price paid/contract. July 130.00 calls. Paid 2.35 per contract.
552. Thursday, 6/16/16. FIT at 9:57 am EST. Original STC at 0.15 (Sold at break-even). July 13.00 calls. Paid 0.75 per contract.
553. Thursday, 6/16/16. FB at 10:04 am EST. 0.30 STC order above price paid/contract. July 115.00 calls. Paid 2.55 per contract.
554. Thursday, 6/16/16. BABA at 10:06 am EST. 0.30 STC order above price paid/contract. July 75.00 calls. Paid 3.50 per contract.
555. Thursday, 6/16/16. BIDU at 11:01 am EST. 0.60 STC order above price paid/contract. July 165.00 puts. Paid 7.00 per contract.

Here is the link to my Daily Trade Log using the DOTS: http://kevinmobrien.com/?page_id=480

This strategy works great in up or down markets, but actually prefer the markets to open down, as this presents more call buying opportunities. Overall, 5 call trades and one put trade so far…

The subscription service provides all of these trades in real-time, using Skype and Chatzy simultaneously, providing you with the ticker symbol, expiration date, STC (sell-to-close price above what is paid per contract) in advance of each trade, and when the position is closed out and at what price. The subscription also includes access to the Trading Forum, where I post my Weekly and Earnings trades, along with some long-term trades.

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

Thanks again.

-Kevin

Updated Daily Options Trading Strategy (DOTS) List of Securities Used – Current as of 6/15/16

Here is the current list of stocks I use for the Daily Options Trading Strategy (DOTS). Updated on Wednesday, June 15, 2016. I have removed (LNKD) from Tier 1 due to Microsoft’s acquisition of LinkedIn http://www.cnbc.com/2016/06/14/microsoft-got-linkedin-users-at-a-discount.html?__source=yahoo%7Cfinance%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=103711613 and replaced it with (BABA):

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

Tier 2: BA, ULTA, TWTR, CMG, SQ, IBM, GPRO, FIT, V

Tier 3: DIS, EXPE, FFIV, CRM, DPZ, FDX, PANW, STZ, PX

Tier 4: BWLD, COST, UPS, MNST, AVGO, HD, PII, INTU, LULU

Earnings Trade of the Week: PVH Corp. (PVH) Reports Earnings After The Markets Close On 5/25/16

PVH Corp. (PVH) is scheduled to report earnings after the markets close on Wednesday, 5/25/16.

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


Mar 24, 2016

92.43
95.25
90.69
94.29
3,632,200
94.25

Mar 23, 2016

88.30
88.96
87.42
87.63
1,677,800
87.59

(PVH) has been a consistent winner over the years using a Neutral Calendar Spread, which I will also use here. I like this trade a lot. It has wide break-even points. If the stock only makes a marginal price move post-earnings, this trade will do extremely well, and still has plenty of room even if it moves more than expected. I am giving this trade a 9.5/10. Here is how the trade is placed:

Entered Trade

Sell -15 PVH Jun16 90 Call

Buy 15 PVH Jul16 90 Call

Requirements

Cost/Proceeds
$1,200.00
Option Requirement
$0.00
Total Requirements
$1,200.00
Estimated Commission
$45.00

NBBO
0.50 – 1.10. Try to pay 0.80 or less for this trade. At a maximum, pay up to 0.90. See the attachment for the profit/loss chart.

PVH NCS 52416

I will post the price to close this trade out tomorrow morning, right before the opening bell.

Update 1: 9:25 am EST on 5/26/16: I am placing the price to close this trade out (net credit) at $1.60. I will update any changes to this here, as needed.
Update 2: 3:20 pm EST on 5/26/16: I am increasing the price to close this trade out (net credit) to 1.70.
Update 3: 1:05 pm EST on 5/27/16: Current price to close this trade out now at $1.60.

Daily Options Trading Strategy (DOTS) – Busy Week So Far (4/18/16 – 4/22/16)

There have already been six (6) trades placed and closed out today using the Daily Options Trading Strategy (DOTS), along with a good day trading yesterday. You can see the trade log here http://kevinmobrien.com/?page_id=480, where I post my trades daily and those in the Skype and Chatzy chatroom in real-time, providing in advance of each trade the ticker symbol, strike price, expiration, and my sell-to-close price above the price paid per contract.

I am on both Skype and Chatzy (Chatzy is great for mobile devices, so use this as a supplement for trader’s on the go) from 8:00 am EST until the markets close each day. Along with the trades posted in real-time daily, I also answer questions throughout the day. I am offering a reduced subscription rate for all plans until next Monday, 4/25/16. Each subscription also includes access to my Trading Forum, at http://kevinmobrien.com/?page_id=127, where I post weekly, earnings, and long-term trades.

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

Thanks,

-K

Current Daily Options Trading Strategy (DOTS) List – Updated 4/18/16

Here is the current list of stocks I use for the Daily Options Trading Strategy (DOTS). Updated on Monday, April 18, 2016:

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

Tier 2: BA, BABA, TWTR, CMG, SQ, IBM, GPRO, FIT, V


Tier 3: DIS, EXPE, FFIV, CRM, DPZ, FDX, PANW, STZ, PX


Tier 4: BWLD, COST, UPS, MNST, AVGO, HD, NTES, INTU, ULTA

Next Weeks Earnings Schedule (4/18/16 – 4/22/16) – Busy Week Ahead

Next week will be on of the busiest all year in terms of the quantity (and quality) of earnings trades. Among the stocks reporting earnings are the following that I will most likely be trading: (Note: those in bold take preference)

LII, NFLX, RCL, DFS, HOG, ILMN, INTC, ISRG, EDU, PM, AXP, CTXS, FFIV, CCK, LVS, PKG, TSCO, YUM, TXT, SLM, URI, AMD, AMZN, GOOGL, SAM, BJRI, GM, MAN, MSFT, PII, SBUX, UA, UAL, V, UNP, CAT, HON, MCD, VZ, LUV, ETFC

I use strategies around earnings that are neutral-based, such as the Neutral calendar Spread, the Reverse Iron Condor, and the Straddle/Strangle. These are debit spread strategies that allow movement in either direction, and really, this is the ONLY way to trade earnings consistently and profit as it is a guessing game as to which direction a stock will move post-earnings, no matter how good or bad the results may be on a company’s quarterly report.

If you have any questions about these strategies or about trading stock options in general, feel free to e-mail me anytime at kmob79@gmail.com.

Thanks.

Daily Options Trading Strategy (DOTS) and Earnings Trades, Refer-A-Friend Subscription Match Plan, San Diego Seminar In June 2016

There have been some very quick in and out trades lately on the Daily Options Trading Strategy (DOTS). You can see the Trade Log at http://kevinmobrien.com/?page_id=480.

Also, earnings trades have also been going very well, some of which I post for free weekly here on my website such as Square (SQ), Red Hat (RHT), CarMax (KMX), and others. Each week, there are always plenty of trading opportunities with earnings releases, and when you use a neutral-based approach as I do, it takes the guessing game out of the equation as to which direction a security will move post-earnings.

Each subscription not only includes my daily DOTS trades, but access to the Trading Forum, where all earnings, weekly, and long-term trades are posted. But there is more than that: I answer questions all day while trading, as my style of trading offers the opportunity to directly communicate with subscribers and to answer any questions you may have throughout the day, along with interacting with many trader’s all over the world. Whether on Skype, Chatzy, or by e-mail, I am always available to help assist you in understanding stock options and trading.

I am offering a Refer-A-Friend Subscription Match Plan until next Friday, April 15,2016. On any subscription plan three (3) months or longer, I will match that for a friend or family member, so basically you can get the subscription at half price that way when referring someone.

On June 13 – 17, 2016, I will be having a seminar in San Diego, CA at the San Diego Convention Center that is both teaching and live trading debit spreads for earnings and weekly trades. If you are interested in these great trading strategies, you won’t find a better teacher of them, I can assure you. Here is the link to the seminar and more additional information: http://kevinmobrien.com/?page_id=1690. Each attendee also receives a free three (3) month subscription to my Trading Forum http://kevinmobrien.com/forum/index.php.

If you have any questions, please feel free to e-mail me anytime at: kmob79@gmail.com. Thanks again.

-Kevin

Free Earnings Trade of the Week: Red Hat, Inc. (RHT) – Reports After The Markets Close On Tuesday, 3/22/16

Red Hat, Inc. (RHT) is scheduled to report earnings after the markets close on Tuesday, 3/22/16.

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

Dec 18, 2015

83.01
83.99
80.45
81.40
7,692,400
81.40

Dec 17, 2015

78.81
79.34
77.66
78.86
2,688,600
78.86

(RHT) can be very unpredictable in terms of price movement post-earnings. A few keys to picking a strategy to use is the amount of movement allowed (up or down), strike price increments available, and the cost to place the trade. On this specific (RHT) trade, I think the Neutral Calendar Spread strategy is the right way to play this trade. The break-even points are very wide, and the price is very good. Even if the stock moves $5.00 + or more either way tomorrow, this trade will still do well and hold value even if it moves more than that, so I consider this trade very low risk with great potential. 9.5/10.

Note: I recommend placing this trade as soon as possible, as the value will most likely increase throughout the day. There is a possibility that the trade can be closed out for a profit by the end of the day if filled early. I will post that at the end of the trade details.

Here is how the trade is placed:

Entered Trade

Sell -25 RHT Apr16 75 Call

Buy 25 RHT May16 75 Call


Requirements

Cost/Proceeds
$1,875.00
Option Requirement
$0.00
Total Requirements
$1,875.00
Estimated Commission
$75.00

NBBO
0.40 – 1.10. Try to pay 0.75 or less for this trade. At a maximum, pay up to 0.85 if late.

If there is an opportunity to close out the trade early (taking less profit) if your order is filled at 0.80 or less, place the closing order out at 1.25 as a day order only.

I will post the price to close this order out tomorrow pre-market, right before the opening bell
RHT NCS 32216
See the attachment for the profit/loss chart.

Update 1: 9:25 am EST: Pre-market, the stock is down about $2.50/share, so using the Neutral Calendar Spread strategy looks very good here. I am placing the price to close the trade out at 1.90 for now. I will update any changes here, if needed.

Update 2: 1:05 pm EST. This trade is looking excellent right now. Time-decay and the current movement is going to increase value quickly. The price to close the trade out is still at $1.90.

Free Earnings Trade of the Week: Square, Inc. (SQ) – Earnings/Long-Term Trade – Expires June 2016

Square, Inc. (SQ) is scheduled to report earnings after the markets close on Wednesday, 3/9/16.

This trade is both an earnings and long-term trade combo. It expires in June 2016. I have been meaning to buy some (SQ) calls for a while, and with earnings due after the bell today, see an opportunity here. Even if the stock should drop post-earnings, the time-value of this trade will hold value in these calls. If the stock should make a significant move upward, this trade has the potential to turn out extremely well. 9/10.

Entered Trade

Buy 10 SQ Jun16 11 Call


Requirements

Cost/Proceeds
$1,650.00
Option Requirement
$0.00
Total Requirements
$1,650.00
Estimated Commission
$15.00

NBBO
1.35 – 2.00. Try to pay 1.65 or less for this trade. At a maximum, pay up to 1.80. I will post the STC tomorrow before the opening bell.

Update 1: 3:55 pm EST. I I am in this trade at 1.65. Already a nice gain, could sell. But with this amount of time left, June exp. will keep it.
Update 2: 9:25 am EST 3/10/16 : Pre-market, the stock is up about $0.20/share. The earnings report was good, and I see this stock continuing to rise. With a lot of time-value left on this trade, I am placing the STC at $4.00 on the calls, as I see the stock heading towards $15.00/share in the near-term future. I will be updating this trade periodically if there are any changes to the STC.
Update 3: 3:34 pm EST 3/10/16: STC still at $4.00. The stock dropped a little bit, nothing significant. Should make a move upward soon. I do not recommend selling anything short of $3.00 if you do not plan to get $4.00.

Free Earnings Trade of the Week: Intuit Inc. (INTU) – Reports After the Markets Close on Thursday, 2/25/16

Intuit Inc. (INTU) is scheduled to report earnings after the markets close on Thursday, 2/25/16.

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

Nov 20, 2015

106.28
108.00
101.17
103.20
6,622,300
102.88


Nov 19, 2015

96.93
97.68
95.79
97.42
3,985,900
97.12

This stock has a history of initially making a somewhat large price move post-earnings, but then settles down to average a moderate move only. I am going to take advantage of this here, using a Neutral Calendar Spread. The current price to pay for this trade is excellent, especially on a higher-priced stock, if you can get it at my recommend price to pay for it. This trade has the potential to make a great ROI, and carries low risk, as it will retain value either way. 10/10.

Here is how the trade is placed:

Entered Trade

Sell -30 INTU Mar16 100 Call

Buy 30 INTU Apr16 100 Call


Requirements

Cost/Proceeds
$1,800.00
Option Requirement
$0.00
Total Requirements
$1,800.00
Estimated Commission
$90.00

NBBO
0.30 – 0.90. Try to pay 0.60 or less for this trade. At a maximum, pay up to 0.66.

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.

INTU NCS 22516

Update 1: 9:25 am EST:
Pre-market, the stock isn’t moving much at all, ideal for the Neutral Calendar Spread strategy. I am placing the price to close this trade out at 1.80. I will update any changes to this here, if needed.

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