New Trade Alert Below Profit Summary and Track Record
SPY went from $299.56 to $302.09 for +$2.53
Collar went from -$0.14 to -$0.42 for = -$0.56
Net Profit = +$1.97/Share on 1700 shares for a $3,349 profit.
Key Macro: Yesterday Vice President Pence slams China in a powerful speech raising questions as to whether a trade deal can be reached, they have a phone call scheduled today to continue negotiations. Earnings continue to come in soft from Amazon, Ford, Caterpillar, Fedex, McDonalds and Texas Instruments. This helps central banks cut rates and expand the money supply with policy announcements coming Oct 31st and Dec 11th.
Now all we need is a small bounce on our TLT position and we’ll close October out with a healthy profit next week!
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 no matter which direction stocks are headed.
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 1.8% return.
New Trade Instructions
New Trade: Per 100 shares of SPY
(1) Buy to close Oct 25, 2019 $302 SPY Call, allow Oct 25, 2019 $297 SPY Put to expire worthless
(2) Sell to open Oct 28, 2019 $303 SPY Call, Buy to open Oct 28, 2019 $301 SPY Put.
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.