New Trade: Per 100 shares of EEM
(1) Sell to close Jan 10 $44.23 EEM Put (2) Buy to open Jan 17 $44.50 EEM Put. No call option will be sold on EEM until we reach $50+ as I expect +17% rally in early 2020. Ask questions in our live webinar at 12 ET today. Trading is risky see disclaimer below.
- 3800 shares entry at $44.21 current $44.87
- Long $44.23 Put expiring Jan 10
- Initial Option Cost -0.61 current value +$0.10
- Net Open Profit = +$0.15/share +$570
- 1900 shares entry at $322.30 current $323.45
- Short $325 Call & Long $320 Put expiring Jan 08
- Initial Option Cost -$0.29 current value -$0.18
- Net Open Profit = +$0.68 or +$1,292
- 3800 shares entry at $27.46 current $29.16
- Long $28 Put expiring Jan 10
- Initial Option Cost -$1.15 current value +$0.03
- Net Open Profit = +$0.58 or +$2,204
- 3800 shares entry at $137.13 current $138.22
- Short $135 Call & Long $138 Put expiring Jan 10
- Assigned on $135 call we sold shares for $135 + $2.5 or $137.50/share or a profit of $0.37/share
- Still long Jan 10 $138 Put originally $1.54 now worth $0.64 after adding in the .37/share gain net loss of -$0.53 or $-2,014.
- Do not repurchase shares of TLT until Thursday trade alert.
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.
This is our maximum risk/reward on today’s Trade Alert: