Previous Trade Results
All in all from our previous trade alert the following happened:
SPY went from $298.33 to $298.71 for a +$0.38 gain
Options went from -$0.10 debit to a -$0.01 debit for a -$0.11 loss
Net Gain = +$0.27/share of SPY or $459 of income on our 1,700 shares in just the last 48 hours, if achieved 3x a week 52 weeks a year that’s $71K or a 13% annualized return!
New Trade Alert Instructions
New Trade Alert Summary per 100 shares of SPY you own:
(1) Buy to close Sep 9, 2019 $301 SPY Call and allow Sep 9, 2019 $295 SPY Put to expire worthless
(2) Sell to open Sep 11, 2019 $302 SPY Call and Buy to open Sep 11, 2019 $295 SPY Put.
Gain of $0.27 per share over trading period or $459 profit on 1,700 shares in last 48 hours, 13% annualized.
Step 1. Close our previous option trade if you took our last trade alert, otherwise skip to step two, your put option should be worth .01 allow it to expire worthless and just buy to close your short call option.
Step 2. For every 100 shares of the SPY you own enter one of the following option contracts to generate larger than normal profits from the SPY and not from the covered call. I’m expecting a big move to new highs in SPY over the next few weeks and this trade setup takes advantage of that.
This is the maximum loss or gain we can achieve in this trade alert.
Options market is not buying much downside protection but is selling considerable call options at the 301 level where we may find resistance.
The big news is that the ECB may provide monetary stimulus this week and the FED next week as US/CHINA talks appear to be making some ground.
This trade is designed to survive an Atomic Bomb and will only be managed Monday, Wednesday & Friday at Noon Eastern!