New Trade: Per 100 shares of SPY
Per 100 shares of SPY (1a) Buy to close Jan 8 $325 SPY Call (1b) Sell to close Jan 8 $320 SPY Put (2a) Sell to open Jan 10 $327 SPY Call (2b) Buy to open Jan 10 $322 SPY Put. Ask questions in our live webinar. Trading is risky, see bottom of this email for full disclaimers.
- SPY trade from $322.30 to $325.01
- Short $325 Call, Long $320 Put expiring Jan 8
- Initial Option Cost -$0.29 current value -$1.01
- Net Profit = +$1.40 on 1900 shares or +$2,660
Profit/Loss On Our Open EEM, TLT and GDX Positions
- 3800 shares entry at $27.46 current $28.42
- Long $28 Put expiring Jan 10
- Initial Option Cost -$1.15 current value +$0.11
- Net Open Profit = -$0.02 or -$76
- 3800 shares entry at $44.87 current $45.18
- Long $44.50 Put expiring Jan 17
- Initial Option Cost -$0.30 current value +$0.18
- Net Open Profit = +$0.18/share +$684
- 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 +$1.30 after adding in the +$0.37/share gain net gain of +$0.13 or +$494
- 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. Close our previous trade if you took it otherwise skip to step 2.
Step 2. For every 100 shares of the SPY you own enter one of the following option contracts.
This is the maximum P/L we can achieve.