New Trade Alert Below Profit Summary and Track Record
SPY went from 305.52 to 307.54 or +$2.02
Collar went from -$0.32 to -$0.68 for = -$1.00
Net Profit = +$1.02/Share on 1700 SPY shares for gain of $1,734 in the past 48 hours. Our TLT P/L is down more than the SPY however I’m confident an upswing in TLT is still yet to head much higher.
Key Macro: Phase one US China trade deal is “ahead of schedule” and “will be signed somewhere in the US” according to Trump this weekend. Chinese media seems to back these claims alongside Peter Navarro and Wilbur Ross. What is in the deal though?
This is very unclear and would appear as though China is simply agreeing to begin slowly purchasing agricultural products at a rate they we’re doing prior to the trade war. Is the impeachment inquiry forcing Trump’s hand to rush a lame deal to help win the 2020 election?
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 -20% 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 1.8% return.
Here is our current asset allocation recommendation:
New Trade Instructions
New Trade: Per 100 shares of SPY
(1) Buy to close Nov 4, 2019 $307 SPY Call, Allow Nov 4, 2019 $305 SPY Put to expire worthless
(2) Sell to open Nov 6, 2019 $309 SPY Call, Buy to open Nov 6, 2019 $307 SPY Put. See email for disclaimer.
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.