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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

Reduced Subscription Rates – April 18th – April 23rd

I am offering reduced subscription rates for all plans from April 18th until April 23, 2017. The subscription includes real-time trade alerts on Skype using the Daily Options Trading Strategy (DOTS) and access to the Trading Forum, where I post earnings, weekly, and long-term trades. These alerts can be received via e-mail or text message instantly.

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

Earnings Trade of the Week: Tesla, Inc. (TSLA) – Reports After the Markets Close On Wednesday, 2/22/17

Tesla, Inc. (TSLA) is scheduled to report earnings after the markets close on Wednesday, 2/22/17.

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

Oct 27, 2016

211.34
213.70
201.65
204.01
204.01
13,093,700

Oct 26, 2016

201.00
203.19
200.10
202.24
202.24
5,632,800

Last quarter, (TSLA) had one of the least moving quarters after reporting earnings in some time. I think this is why this trade strategy here, a Reverse Iron Condor, sets up really well. If (TSLA) reported earlier this week, I would have been more comfortable using the weekly options that expire this Friday. But since tomorrow will already be Thursday, we want to be a little more conservative when choosing to use a weekly with just two days left. Instead, I will use next week’s expiration, which expires next Friday. I like this trade a lot, as I think (TSLA) will make a much larger price move than last quarter, and the break-even points are much smaller than I anticipated. (TSLA) is a very volatile stock in the first place, so this trade should have no problem gaining maximum value. 9.5/10. I am going a bit heavier on this specific earnings trade than usual.

Here is how the trade is placed:

Entered Trade

Buy 20 TSLA MarWk1 255 Put

Sell -20 TSLA MarWk1 250 Put

Buy 20 TSLA MarWk1 290 Call

Sell -20 TSLA MarWk1 295 Call

Requirements

Cost/Proceeds
$4,200.00
Option Requirement
$0.00
Total Requirements
$4,200.00
Estimated Commission
$100.00

NBBO
1.80 2.39. Try to pay 2.10 or less for this trade. At a maximum, pay up to 2.15. See the attachment for the profit/loss chart.

Update 1: 9:22 am EST: Pre-market, (TSLA) is down about $6.00/share. Once volume kicks in, it could go any direction. Since there is over a week of time value left, I am initially going to place the price to close out (net credit) on both the call and put sides of this trade at $4.00 for now. I will be continuously updating this trade throughout the day.

Update 2: 9:44 am EST: On the put side of this trade, place the price to close the position out (net credit) at $4.20. Leave the call side open for now, there is plenty of time left on it, and the Reverse Iron Condor strategy, with two “sides”, the bull call spread and the bear put spread, can do very well by holding one side.

Update 3 12:45 pm EST: No Changes to positions. Will update as needed.

Update 4: 3:40 pm EST. I will update this trade right before the markets open tomorrow morning. In a good spot, should do well on it.

Update 5: 9:15 am EST. 2/24/17: TSLA is down another $4.00 pre-market, so after yesterday’s drop this trade should start really gaining in value. One of the reasons I chose next week’s expiration instead of the February Week 4 (this week) is exactly for how this trade is working out. If I chose this weeks, it is a borderline loss/break-even unless the stock really drops a lot more today. It would have been much more risky move to do. I have the price to close the put side of this trade out at 4.30. The call side obviously has little value, as this is how the strategy is designed, so leave it open. It would cost more to close the position than the value. I will update any changes, as needed, here.

Update 6: 9:40 am EST, 2/27/17: TSLA down big again. 4.30 STC (net credit) on the put side of this trade.

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.

Very Volatile Trading Day on Monday, 1/30/17 – Daily Options Trading Strategy (DOTS)

For about a week ahead of the Presidential Inauguration trading was much slower than usual, as was last week. I am always extra careful trading around any event, but especially this one. There was a surprising lack of volatility, and you can’t trade what isn’t there, so it required some patience to spot trades that did come up.

I do expect very volatile markets going forward, however, and there are many reasons for this. This is great for the Daily Options Trading Strategy (DOTS), which is a strategy that takes advantage of highly oversold and overbought securities with the anticipation of exiting the trade a soon as possible.

Today, on Monday 1/30/17, the markets opened down (still are), and there were trading opportunities right after the markets opened, all calls. This had to be taken advantage of using my strategy. You can see these trades and all others on the top of my homepage (Daily Trade Log) that had some really great returns in an extremely short amount of time. Here is the link: http://kevinmobrien.com/?page_id=480

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

Thanks.

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.

The Daily Options Trading Strategy (DOTS) Weekly Update & Market Volatility

It has been a very busy week so far using the Daily Options Trading Strategy (DOTS), especially on Monday. This strategy does extremely well in volatile markets. Here are the trades placed and closed out so far:


– Monday, 11/14/16. BABA at 9:35 am EST. 0.23 STC order above price paid/contract. December 90.00 calls. Paid 3.93 per contract.
– Monday, 11/14/16. FB at 9:37 am EST. 0.35 STC order above price paid/contract. December 115.00 calls. Paid 5.30 per contract.
– Monday, 11/14/16. AAPL at 9:39 am EST. 0.30 STC order above price paid/contract. December 110.00 calls. Paid 1.74 per contract.
– Monday, 11/14/16. C at 9:53 am. 0.17 STC order above price paid/contract. December 55.00 puts. paid 2.17 per contract.
– Monday, 11/14/16. GOOGL at 10:45 am EST. 1.40 STC order above price paid/contract. December 755.00 calls. Paid 19.70 per contract.
– Tuesday, 11/15/16. BA at 10:00 am EST. 0.34 STC order above price paid/contract. December 150.00 calls. Paid 2.40 per contract.
– Wednesday, 11/16/16. NUGT at 9:43 am EST. 0.20 STC order above price paid contract. December 9.00 calls. Paid 1.90 per contract.
– Wednesday, 11/16/16. TSLA at 10:15 am EST. 1.00 STC order above price paid/contract. December 180.00 calls. Paid 8.50 per contract.

To see my trade log, you can visit the link here: http://kevinmobrien.com/?page_id=480

If you are interested in my subscription service, I provide each trade on Skype and Chatzy in real time, with the ticker symbol, strike price, expiration date, and my sell-to-close price, which is the amount above what is paid for each contract. I also interact with all subscribers throughout each trading day. The subscription also includes access to my Trading Forum, where I post my earnings, weekly, and long-term trades.

I currently have reduced subscription rates and offer a one week money back guarantee if you are not happy with the service.

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

-Kevin

Free Earnings Trade of the Week: GoPro, Inc. (GPRO) – Reports After the Markets Close On 11/3/16

GoPro, Inc. (GPRO) is scheduled to report earnings after the markets close on Thursday, 11/3/16.

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

Jul 28, 2016

12.15
13.28
11.75
13.02
24,145,000
13.02

Jul 27, 2016

11.47
11.83
11.42
11.57
10,651,700
11.57

The Implied Volatility on the weekly at-the-money strike price is an extremely high 401. This is very rare. Compared this number to the November 2016 at-the-money strike price of 113, which is still high, but there’s still a huge discrepancy here. If the stock make a similar move as to what it did last quarter, the trade and strategy I am using here, the Neutral Calendar Spread, will be very profitable immediately. The price is excellent to place this trade, as well, with weekly options available. 9/10.

Here is how to place this trade:

Entered Trade

Sell -75 GPRO NovWk1 12 Call

Buy 75 GPRO Nov16 12 Call

Requirements

Cost/Proceeds
$750.00
Option Requirement
$0.00
Total Requirements
$750.00
Estimated Commission
$187.50

NBBO
gpro-ncs-11316 0.06 – 0.13. Try to pay 0.10 or less for this trade. At a maximum, pay up to 0.11. See the attachment for the profit/loss chart. I will post the price to close this position out tomorrow morning right before the opening bell.

Update 1: 9:22 am EST, 11/4/16 – Pre-market, the stock is down about $2.00/share. This is close to what I expected, so I am anticipating the stock to recover off this low. I am placing the STC (net credit) at 0.30 for now, and will update any changes to this here.

Update 2, 10:07 am EST – price to close this trade out (net credit) now at 0.25.

Update 3: 10:42 am EST. Position closed at 0.27. Paid 0.12.

Excellent Week Trading Earnings & The Daily Options Trading Strategy (DOTS)

Is has been a great week so far both with the start of Earnings Season and the Daily Options Trading Strategy (DOTS). Here is the list of DOTS trades so far this week (10/17/16 – 10/20/16):

630. Monday, 10/17/16. AMZN at 9:41 am EST. 1.50 STC order above price paid/contract. November 815.00 calls. Group chat paid an average of 32.85 per contract.
631. Monday, 10/17/16. ULTA at 9:47 am EST. 0.60 STC order above price paid/contract. November 260.00 calls. Paid 7.60 per contract.
632. Tuesday, 10/18/16. TSLA at 1:14 pm EST. 0.70 STC order above price paid/contract. November 195.00 calls. Paid 10.30 per contract. Quick trade.
633. Tuesday, 10/18/16. TSLA at 1:20 pm EST. 2.20 STC order above price paid/contract. November 195.00 calls Paid 9.60 per contract. Used a Trailing Stop.
634. Wednesday, 10/19/16. NUGT at 10:18 am EST. 0.25 STC order above price paid/contract. November 13.00 calls. Paid 2.45 per contract.
635. Wednesday, 10/19/16. ULTA at 10:01 am EST. 0.44 STC order above price paid/contract. November 255.00 calls. Paid 6.16 per contract.
636. Thursday, 10/20/16. BIDU at 9:39 am EST. 0.55 STC order above price paid/contract. November 175.00 calls, Paid 7.75 per contract.
637. Thursday, 10/20/16. TSLA at 9:41 am EST. 0.90 STC order above price paid/contract. November 200.00 calls. Paid 8.75 per contract.
638. Thursday, 10/20/16. AAPL at 10:40 am EST. 0.30 STC order above price paid/contract. November 115.00 calls. Paid 3.90 per contract.

You can see the Daily Trade Log at the top of the page.

As far as earnings, every trade so far this week has been a winner (already closed out). I also placed 3 new Earnings trades today.

earnings-kob-oct-week-3

Next week is stacked with earnings, one of the biggest weeks really in the next few months. During slow periods today, I was preparing for a busy week next week.

I have reduced the subscription rates during the busy period during earnings season (until October 31st).

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

Thanks again.

-Kevin

Free Earnings Trade of the Week Starts Back Tomorrow

I will be posting a free Earnings Trade of the Week starting tomorrow and will post at least one trade per week here on the website. I will try to post each trade by 11:45 am EST but no later than 2:00 pm EST (depending on the stock/pricing, etc.). There are a lot of companies reporting tomorrow after the markets close, so will definitely have at least few trades to place. Yesterday’s Strangle on Netflix (NFLX), which I mentioned in an earlier post this morning, netted a 150% return on the call side, which I sold already. I still have the put side with one month of time-value.

My trading style is to close out profitable trades as soon as possible, and that was a great trade at a good price to pay at $3.10. I thought when initially looking at different strike prices that it would cost more than that. The pricing of options, and especially on the Straddle/Strangle strategy, are critical to their success.

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

Thanks.

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