$2,850 Profit On EEM Today! Per 100 shares of EEM: (1) Allow Jan 17 $44.50 EEM Put to expire worthless (2) Buy to open Jan 24 $45.23 EEM Put. No call option will be sold on EEM until we reach $52+ as I expect a 15%-30% rally in early 2020. Ask questions in our live webinar at 12 ET today. Trading is risky see disclaimer below.
- 3800 shares entry at $44.87 current $45.92
- Long $44.23 Put expiring Jan 10
- Initial Option Cost -0.30 current value +$0.0
- Net Open Profit = +$0.75/share +$2,850
- 1900 shares entry at $326.80 current $327.72 (+0.92)
- Short $330 Call & Long $324 Put expiring Jan 15
- Initial Option Cost -$0.18 current value -$0.03 (-0.21)
- Net Open Profit = +$0.71 or +$1,349
- 3800 shares entry at $28.12 current $28 (-0.12)
- Long $29 Put expiring Feb 28
- Initial Option Cost -$1.59 current value +$1.62 (+0.03)
- Net Open Profit = $-0.09 or -$342
- 3800 shares entry at $136.01 currently 138.43 (+2.42)
- Short $133 Call & Long $138 Put expiring Jan 17
- Option starting value +0.94 current value -$5.13 (-4.19)
- -1.77 x 3800 -$6,726
With China a deal being signed tomorrow I expect this position can still deliver a profit by Thursday and we may potentially hold an extra day into Friday to maximize profits from our short call / long put. Note: We held a loss in this position last week until closing out a $3,344 TLT profit.
Here is our current asset allocation recommendation:
The charts below illustrate the profit per month we’ve generated against the SP500 and what you’ll notice is that we rarely have a losing period.
Note the 1% return while SP500 crashed -16% in December…
Note the -7% return in May from the SPY ETF as we made a 2.2% return.
Again in August SPY ETF fall -7% and we deliver a 0.8% return.
In November and December we underperformed the SP500 playing the markets extremely cautiously and positioned for the trade deal to break down.
New Trade Alert Step-By-Step Instructions
Step 1. If you took last week’s trade close out your previous options trade with the following trade. Otherwise go directly to step 2.
Step 2. Per 100 shares of EEM enter the following put option.