Revised post for September 6 strategies. Options. VIX consideration

The stock market has been very stable over the past few months. The VIX (volatility index) is at a low right now. Today it was down 11% after the jobs number was in line creating a higher probability that interest rates will stay the same for a bit longer, possibly putting a hold on Fed rate hikes.

We are in uncharted waters so it is hard to predict what will happen next. There is no history to peg this situation on but my educated opinion is we will see some major volatility in the near future. September and October are historically some of the most volatile months for stocks. And this volatility could be to the downside. I hope your financial advisor has warned of you of this situation….

If you have been selling credit spreads in options you might want to consider adjusting your strategy. With lower option prices it might be time to start buying calls and puts (spreads, calendars, leaps, straddles, even straight up.) And if you do sell options make sure it’s a directional strategy and make sure you set a stop loss!. Iron Condors have been very successful over the past two months but I don’t have as much confidence in them at this point. That is all. Go Twins!

Strategy change starting September 6, 2016 - VIX situation

The stock market has been very stable over the past few months.  The VIX (volatility index) is at a low right now.  Today it was down 11% after the jobs number was in line creating a higher probability that interest rates will stay the same for a bit longer, possibly putting a hold on Fed rate hikes. 

We are in uncharted waters so it is hard to predict what will happen next.  There is no history to peg this situation on but my educated opinion is we will see some major volatility in the near future.  September and October are historically some of the most volatile months for stocks.   And this volatility could be to the downside.  I hope your financial advisor has warned of you of this situation…. 

If you have been selling credit spreads in options you might want to start adjusting your strategy.  With lower option prices it might be time to start buying calls and puts (spreads, calendars, leaps, straddles, even straight up.  That is all.  

My options account October 3, 2014

I haven't been here much lately and I apologize!  I'm still trading options on a daily basis and I am doing better than ever.  I sure want to help all of my fans but since I don't have any fans it's hard to do write ups.  So let's get some referrals!  I will post all my trades for free.  Ok let me show you one simple trade that takes almost zero risk and will bank you an 88% return annually.

The Stock: PCLN
The strategy: 14 day put credit spreads
The gain: 2.3% per 14 day period

PCLN is currently trading at 1141.  This stock has only gone down by 100 points (max) five times over the past three years.  It is institutionally owned by 98%.  This company always beats earnings estimates.  They are growing a very good rate.   The overall market is a bit shaky right now but I'm still going to play the upside here. 

sell the 1040 put
buy the 1025 put
credit: $35 per contract
10 contracts
commission: $15
Profit: $335
collateral required: 14,665
profit % 2.29%

Exit strategy:

PCLN hits 1060 we exit and reposition for 3% gain.

This strategy could be used for a year as long as the market is right.  Don't do this during earnings and make sure you take your emotions out of it.  You want me to trade for you then let's talk.  I have the perfect platform and negotiated an amazing commission rate.  Plus I watch my portfolio every minute of every day and am well aware of all the market and stock news.  My goal is no less than 100% gains per year and those gains are 95% probable.  I love options.  Jonny

My options account December 20, 2013

I'm back people.  I've still been trading options but took a little break from my blog.  I just finished a very good week making over 30%.  My largest position was an IRON condor in PCLN.  Priceline had a very neutral week and my condor killed it this week.  I lost on three of my positions in AAPL, AMZN and GOOG but still made over 30%.  That is a crazy.  But I have a new two year goal.  My goal is to turn the $16,000 I currently have in the account into $1,000,000 by the end of 2015.  This may seem completely unrealistic but I'm telling you it is completely realistic.  All I need to do is make about 4% per week.  This seems like a lofty goal but getting 4% per week is almost too easy.  I've had a hard time only getting small returns per week but that is where I have lost.  Its when I start trying to get the huge gains like 25-35% per week.  When I got greedy I got burned.  Now I'm going to stick with a plan and as long as I hit it each week for the next two years I'll be a millionaire.  This goal is more about the challenge than anything.  Its about proving the critics wrong.  Showing that the impossible can be possible.  I'm currently working on devising my plan and will fully disclose my trades right here.  This information will be extremely valuable so follow me to get all my updates.  Each week will be different.  A carefully devised plan will be used and as long as I am not completely wrong about the direction of my underlying stocks or the overall market then I will bank my full profits each week.  Nothing can stop me right now!   I'm coming.

Oh, I wanted to share this site with you are all.  Click Here! to get this valualble information free.

Jonny

My options account September 30, 2013

I'm back and making trades again.  My account balance currently sits at $14,918.  I'm already up about $300 on the day.  I'm not going to list all the specifics of my trades but I will make suggestions and will advise what I'm doing in general for each stock.  Today marks a very critical day in American history.  Investors have panicked and the stock market decreased last week and is down today.  We are on the verge of a government shutdown if an agreement can not be made by midnight tonight.  I don't have all the details but my feeling is people are overreacting to this news.  If an agreement is not come to, which is the expectation, I don't think the market crashes.  It may head lower initially but I envision a rebound the same day or later in the week.  This is a great situation for my trades as I am selling put credit spreads again.  I'm focusing on stocks that are very strong (AAPL, TSLA, GOOG, PCLN, NFLX, AMZN, MA, BIDU and HLF).  The increased volatility in the market has pushed premiums of these options up and I'm trying to limit my risk by selling put credit spreads well out of the money.  These are all weekly options expiring at the end of the week.  As the stocks move higher I'll start selling the call credit spreads as I also don't think the market increases substantially.  There's always a risk of the market moving largely one way or the other but I'll bank on the expectation that it won't. 

Some of the trades I have done so far:

AAPL $478.90 465/460 put credit spread
GOOG $879 855/850 put credit spread
HLF $70 67/65 put credit spread
MA $676 655/650 put credit spread
NFLX $309.50 295/290 put credit spread
PCLN $1010 980/975 put credit spread
TSLA $194 180/175 put credit spread

I entered all of these earlier today and my account is now up just over $300 on the day.  Tomorrow will be key in my account's success this week.

Jonny

I'm back, My options account September 25, 2013

After a long vacation I am back and will be posting my trades.  Currently I have a few small trades on:

AAPL $482.25 475/470 Put Credit Spread ($82 credit); 485/490 Call Credit Spread ($85 credit).  Apple had gone up a lot early in the week so I am happy to see the stock move lower today.  I looking pretty good consider what I know.  Amazon has annouced a Kindle product that will compete with Apple's ipads which sent the stock lower.  I don't think the stock will rebound much the rest of the week and I really think Apple will stay between my 475 and 485 strikes.  Two days to go.

HLF $70.78 10 69/68 put credit spreads ($33 credit); 10 72/73 call credit spreads ($20 credit).  HLF was hanging around 68/69 earlier this week but today the stock rose $2 so I'm looking really good right now.  However, if the stock continues its uptrend I could be in trouble.  There are so many short shares sold right now that large increases can always happen.  I'll take the risk as I think we see the stock level out for the rest of the week.

Starting next week I'll have a lot more trades.

Jonny

My options account August 28, 2013

Today went up and down.  Many of my stocks performed well like AAPL, GOOG, AMZN, MA, and TSLA but HLF, NFLX and PCLN did not perform as I was hoping.  Thursday will be very important and I'm looking for another flat to up day.  I need HLF to start moving higher! 

Jonny