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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

New Year’s Discounted Subscription Rates – January 4, 2017 Through January 11, 2017

I am offering a discount on all Subscription Plans until January 11, 2017. Earnings will be picking up soon, as well, so should get plenty of these trades including the Daily Options Trading Strategy (DOTS). Each subscription plan includes all of these strategies, including weekly debit spread trades.

Here are the following discounted rates:

One (1) Month Subscription – $129.00
Three (3) Month Subscription – $299.00
Six (6) Month Subscription – $449.00
One Year Subscription – $699.00
Lifetime Subscription – 999.00

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

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.

CBOE’s Useful IVolatility Tool – Website Link

One tool I like to use with stock options, especially on Straddle or Strangle trades, but also long-term trades, is the Chicago Board Options Exchange IVolatility options calculator/pricer. The link is here: www.cboe.com/framed/IVolframed.aspx?content=http%3a%2f%2fcboe.ivolatility.com%2fcalc%2findex.j%3fcontract%3dC44A90FE-8D3F-4F26-A1EA-AAB6AB7CB180&sectionName=SEC_TRADING_TOOLS&title=CBOE%20-%20IVolatility%20Services.

This calculator allows trader’s to put in a ticker symbol and choose their own parameters, such as the strike price, expiration date, current volatility percentage, and the current share price in relation to the strike price. One this information is added in, the calculator will then compute all of the parameters and show the estimated (very accurate) price for both the call and put options. This is especially handy for new option traders, but also very useful for options that have a longer expiration date and time-value left.

I am frequently asked how do I know what a good price to place the sell-to-close order should be on strategies such as the Straddle/Strangle, which has both call and put options placed simultaneously, a neutral-based strategy.

Yesterday, 10/17/16, I placed a Strangle on Netflix (NFLX), using November $115.00 strike price calls and November $85.00 put options. The stock was trading at $100.00/share at the time of placement and fill. I paid $3.10 to place this trade. Since there is about a month of time-value left on both legs of the strategy, I do not want to sell either side of the trade too low. Pre-market on Tuesday, the stock is up about $18.50 a share, so I have a general idea of what the call side will be trading at just based on experience and the intrinsic value alone, but the put side may also still have some value, especially should there be a pull back on the stock.

One important thing: after earnings, the Implied Volatility of a given security will drop. This is because the news is already out as to the results post-earnings and the uncertainty is mostly removed as to what direction the stock will move. When using the IVolatility calculator, as a general rule, I like to lower the volatility percentage about 20 points. So if the chart on the calculator had a volatility percentage of 58 pre-earnings, use 38 when you input the new information. This may be too much, or too little, but it will give you a good idea as to the average drop of volatility. I do this pre-market.

On earnings trades, you can always use trailing stops if you think the trade will keep gaining in value in relation to how the stock is moving.

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

Daily Options Trading Strategy (DOTS) – Updates List of Stocks Used – Current as of 9/6/16

Here is the current list of stocks used with the Daily Options Trading Strategy (DOTS) as of September 6, 2016:

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

Tier 2: BA, BWLD, TWTR, CMG, IBM, FDX, HD, C, FIT

Tier 3: EXPE, COST, SQ, PYPL, DPZ, CRM, DIS, UPS, ULTA

Tier 4: PNRA, PII, INTU, GPRO, FFIV, PX, V, NUGT, AVGO

I separate each group of stocks used into groups of 9, using a grid view. This makes it easier to navigate different tabs and follow each stock without having to close out any tabs or leave any page.

If you have any questions, you can contact me at kmob79@gmail.com.

Thanks.

A Look at Next Weeks Earnings Releases and Trading Opportunities (7/18/16 – 7/22/16)

Next week, July 18th – July 22nd, will be full of some very good earnings trades. Here is a list of the stocks I will be looking to trade .

NFLX, VMW, YOO, ISRG, LMT, MSFT, UNH, AXP, EBAY, FFIV, IMAX, INTC, LVS, MAT, PII, QCOM, TSCO, URI, AMD, ATHN, SAM, COF, DHI, DPZ, DNKN, FLEX, GM, P, PYPL, SBUX, SYK, HON, VFC

As earnings season kicks into full gear next week there should be at least a few weeks with a lot of activity. When trading earnings releases, I use neutral-based strategies such as the Reverse Iron Condor, the Neutral Calendar Spread, the Double Neutral Calendar Spread, and the Straddle/Strangle.

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

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

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

Free Earnings Trade of the Week: CarMax Inc. (KMX) – Reports Before The Markets Open 4/7/16

CarMax Inc. (KMX) is scheduled to report earnings before the markets open on Thursday, 4/7/16.

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

Dec 18, 2015

53.44
53.90
50.57
53.49
20,119,800
53.49

Dec 17, 2015

58.81
59.16
57.11
57.15
4,757,100
57.15

While the stock moved down a decent amount last quarter, it wasn’t too significant. Even if the stock were to repeat the same movement this quarter, the Neutral Calendar Spread strategy will do well. The current Implied Volatility on the April 2016 calls is 76, while the May 2016 calls are at 42, so this is an angle to take advantage of, especially on a non-volatile stock. I am giving this trade a 9/10.

Here is how the trade is placed:

Entered Trade

Sell -25 KMX Apr16 52.5 Call

Buy 25 KMX May16 52.5 Call


Requirements

Cost/Proceeds
$1,375.00
Option Requirement
$0.00
Total Requirements
$1,375.00
Estimated Commission
$75.00


Greeks / NBBO

IV
KMX Apr16
52.5 Call
76.21

KMX May16
42.02


NBBO
0.40 – 0.75. Try to pay 0.55 or less for this trade. At a maximum, pay up to 0.58. See the attachment for the profit/loss chart.

KMX NCS 4616

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

Update 1: 9:25 am EST:
Pre-market, the stock is up about $1.70/share. It also had a bit of a run-up late yesterday before the markets closed, but nothing major. I am placing the price to close this trade out at $1.50 for now. I will update any changes here, if needed.

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