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New Weekly Subscription Now Available (7 Trading Days) Plus End of Year Reduced Subscription Rates (12/18/17 – 12/25/18)

I am now offering a weekly subscription plan (a full 7 trading days) and also have reduces subscription rates on all plans from Monday, 12/18/17, until Christmas Day (12/25/17.)

Here are the following reduced rates for all subscription plans:

– Weekly Subscription (7 Trading Days) – $39.99
– Monthly Subscription – $99.99 (normally $119.99)
– Three (3) Month Subscription – $219.99 (normally $249.99)
– Six (6) Month Subscription – $329.99 (normally $399.99)
– One (1) Year Subscription – $449.99 (normally $599.99)
– Lifetime Subscription – $599.99 (normally $799.99)

Once subscribed, I will e-mail you a username and password to the Trading Forum Webpage, where earnings, weekly, and long-term trades are posted. I will then need your Skype username so I can add you to the mainchat, where I post all of the Daily Options Trading Strategy (DOTS) trades in real-time. All accounts are set-up almost immediately after subscribing.

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

Lululemon Athletica Inc. (LULU) Earnings Trade – The Double Neutral Calendar Spread Placed On 12/6/17 Explained

Lululemon Athletica Inc. (LULU) reported earnings after the markets closed on Wednesday. (LULU) is a great candidate to use the Double Neutral Calendar Spread strategy. To read more about this strategy, see this link here: http://kevinmobrien.com/?p=858

At the time of placement on Wednesday, (LULU) was trading at $66.50/share. Understanding past performance movement post-earnings on the stock, (LULU) tends to move in the $4.00 -$6.00 range, up or down after reporting earnings. When using this strategy, I like to go on the higher end of price movement. For example, at $66.50 a share, I was looking at the $72.50 strikes on the call side, and $61.50 on the put side. While there other closer near the money strikes available, using those presented too much risk for me, allowing less price movement in the share price to make a profit I was satisfied with.

Trade and Probability Calculator/P/L Chart

I got this trade filled at a $0.33 debit.

The following morning, (LULU) opened up at $73.35/share. This was a perfect scenario. Immediately at the open, the trade was very profitable. It could have been closed out then. However, an important factor with this strategy is that time-decay is on your side at this point. Depending on what kind of profit a trader is content with, a choice has to be made. I chose to keep the trade until this morning (Friday, 12/8/17). Understanding that the stock wasn’t going to make a drastic price move, time-decay taking place, I closed the position out at a $1.10 net credit on the call side, and also got $0.10 on the put side, which I sold on Thursday morning.

To compare strategies and costs, a Straddle strategy (buying both calls and puts that are at-the money), would have cost about $7.50. Using ten (10) contracts on each leg, this trade would have costs $7,500.00, minus commissions. A Strangle strategy would cost less, but there is also a lot more risk, as the stock has to move much more in order to profit.

Another benefit of the Double Neutral Calendar Spread strategy is how well it holds value. On a Straddle/Strangle, there must be a major price move in order to profit or you will be looking at a major loss. In my opinion, the Straddle is the most risky earnings strategy one can place. While the potential profit is unlimited on the upside (the calls), there is simply too much of a price move needed, often unrealistically.

When using this strategy, you want to see a profit/loss chart that looks like the one I posted above. If you see any points in the chart that look like this, avoid the trade completely:

You will always want to avoid non-volatile stocks that have a history of making minimal price moves post-earnings.

As I mentioned in my first post about this strategy, when used properly with the parameters I emphasize, this strategy is one of the most inexpensive, low risk, and profitable strategies there is when using for an earnings-based trade.

If you have any questions about this strategy, or stock options, please leave a comment or e-mail me at: kmob79@gmail.com

This strategy, and all earnings traded are posted on my Trading Forum website, and each subscription has access to these trades (you receive them instantly via e-mail once posted). I am currently offering a subscription match plan until this Sunday, 12/10/17.

Thanks again.

Updated Daily Options Trading Strategy (DOTS) List of Stocks Used – Current as of 10/13/17

Here is the updated list of stocks used in the Daily Options Trading Strategy, current as of 10/13/17:

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

Tier 2: BA, TWTR, C, SQ, CMG, CRM, ULTA, FFIV, AKAM

Tier 3: RHT, PYPL, FDX, NUGT, EXPE, FSLR, LMT, ISRG, IBM

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

Thanks.

Earnings Season Promo: Subscription Match Offer – From Thursday, 10/12/17 to Sunday, 10/15/17

From Thursday, October 12, 2017 through Sunday, October 15, 2017, I am offering all new subscribers a match on all subscriptions. This offer lasts until Sunday (10/15/17), ahead of earnings season, which starts in full next week. The match plan is as follows:

1 Month subscription = 2 Months
3 Month subscription = 6 Months
6 Month subscription = 1 Year
1 Year subscription = Lifetime

Once signed up, I will automatically credit your account with the match to whichever plan you choose.

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

Thanks.

Very Busy Week Trading So Far (6/12/17 – 6/13/17) – Daily Options Trading Strategy (DOTS)

This week has gotten off to a great start using the Daily Options Trading Strategy (DOTS). The daily volatility is providing plenty of opportunities, as the strategy takes advantage of daily swings in stocks. So far, here are the trades placed and closed out:

797. Monday, 6/12/17. AMZN at 9:39 am EST. 1.50 STC order above price paid/contract. June 950.00 calls. Paid 17.50 per contract.
798. Monday, 6/12/17. NFLX at 9:50 am EST. 0.50 STC order above price paid/contract. June 150.00 calls. Paid 3.80 per contract.
799. Monday, 6/12/17. FB at 9:57 am EST. 0.50 STC order above price paid/contract. June 145.00 calls. Paid 2.90 per contract.
800. Tuesday, 6/13/17. NVDA at 10:08 am EST. 0.50 STC order above price paid/contract. July 150.00 calls. Paid 8.80 per contract.
801. Tuesday, 6/13/17. BABA at 10:29 am EST. 0.40 STC order above price paid/contract. July 140.00 calls. Paid 4.50 per contract.
802. Tuesday, 6/13/17. NVDA (again) at 10:46 am EST. 0.40 STC order above price paid/contract. July 150.00 calls. Paid 7.40 per contract.
803. Tuesday, 6/13/17. AMZN at 11:00 am EST. 2.00 STC order above price paid/contract. July 965.00 calls. Paid 30.35 per contract.

Also, today was supposed to be the last day I was offering the subscription match plan (see last week’s post), but will extend that until this coming Thursday (6/15/17). If you have any questions, you can e-mail me at: kmob79@gmail.com

Thanks.

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.

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.

Earnings Season Starts This Week – Will Be a Busy Few Weeks Trading

With Alcoa (AA) and the big bank stocks reporting earnings this week (C), (JPM), (WFC), the next month will be full of earnings trades. I use trading strategies that take a neutral approach towards earnings. These include the Strangle, the Reverse Iron Condor, and the Neutral Calendar Spread.

There are still a couple of days left for the reduced subscription rates + match plan that I am offering.

If you have any questions about options or the strategies mentioned above, please e-mail me at: kmob79@gmail.com

Thanks.

-Kevin

Earnings Trade of the Week: Skechers U.S.A., Inc. (SKX) – Reports After The Markets Close On Thursday, 4/21/16

Skechers U.S.A., Inc. (SKX) is scheduled to report earnings after the markets close on Thursday, 4/21/16.

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

Feb 11, 2016

29.30
30.35
26.35
28.24
12,018,500
28.24


Feb 10, 2016

27.23
28.14
27.01
27.17
4,247,300
27.17

The Implied Volatility (IV) on the weekly April Week 4 expiration at-the-money strike is a extremely high 301.69, compared to the May 2016 at-the-money strike of 66.77. Clearly, there is a big price move expected in relation to the share price. I don’t think it happens. Just as last quarter, the stock really didn’t move too much, and while I expect it to do more than that this quarter, a trader has to take advantage of past history and an elevated IV level as this trade has, which will again be a Neutral Calendar Spread. This trade, as mentioned, has weekly options, is priced very good, and a lot of factors working in its favor. It will also hold value very well even in the event it moves more than expected post-earnings. I am giving this trade a 10/10. A must trade.

Here is how the trade is placed:

Entered Trade

Sell -75 SKX AprWk4 30 Call

Buy 75 SKX May16 30 Call

Requirements

Cost/Proceeds
$2,850.00
Option Requirement
$0.00
Total Requirements
$2,850.00
Estimated Commission
$225.00


Greeks / NBBO

SKX AprWk4
30 Call
301.69

SKX May16
30 Call
66.77

NBBO
0.25 – 0.50. Try to pay 0.38 or less for this trade. At a maximum, pay up to 0.41.

See the attachment for the profit/loss chart.

SKX NCS 42116

Update 1: 4/22/16, 9:20 am EST: Pre-market, the stock is up $2.20/share. I am placing the price to close this trade out (net credit) at 1.00. I will update any changes here, if needed.

Update 2 9:34 am EST: : Price to close this trade out now at 0.85.

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.

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