New Trade: Per 100 shares of SPY
(1a) Buy to close Jan 6 $324 SPY Call (1b) Sell to close Jan 6 $320 SPY Put (1c) Sell to close Jan 8 $325 Call (2a) Sell to open Jan 8 $325 SPY Call (2b) Buy to open Jan 8 $320 SPY Put. Ask questions in our live webinar. Trading is risky, see bottom of this email for full disclaimers.
- SPY trade from $321.64 to $322.31
- Short $323 Call, Long $321 Put expiring Jan 3
- Long $325 Call expiring Jan 6
- Initial Option Cost -$0.08 current value +$0.23
- Net Profit = +$0.82 on 1900 shares or +$1,558
These are our open positions P/L on EEM, TLT and GDX:
- 3800 shares entry at $27.46 current $29.24
- Long $28 Put expiring Jan 10
- Initial Option Cost -$1.15 current value +$0.04
- Net Open Profit = +$0.67 or +$2,546
- 3800 shares entry at $44.21 current $44.79
- Long $44.23 Put expiring Jan 10
- Initial Option Cost -0.61 current value +$0.02
- Net Open Profit = +$0.0/share +$0
- 3800 shares entry at $137.13 current $138.57
- Short $135 Call & Long $138 Put expiring Jan 10
- If assigned we sell shares for $135 + $2.5 or $137.50/share or a profit of $0.37/share from the TLT and short call position
- We will still be long Put originally $1.54 now worth $0.53 a loss of -$1.01
- Current open loss after assignment -$3,838
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. The deal did not breakdown (yet!) and we still made out with a nice healthy profit and total return in 2019 of 15% with only 1% drawdown in a total month!
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.