Warning: TLT Avalanche Ahead (1a) If assigned repurchase your TLT shares and sell to close your Jan 17 $138 TLT Put (1b) If not assigned buy to close your Jan 17 $133 TLT call and sell to close your Jan 17 $138 TLT Put (2) Per 100 shares of TLT Sell to open Jan 24 $136 TLT Call and Buy to open $139 TLT Put. (3) No changes to GDX position, for every 100 shares of GDX buy to open 1 Feb 28th $29 GDX Put. Trading is risky see below for disclaimer.

1/9/2020 Trade Alert on TLT

  • 3800 shares entry at $136.03 – assigned
  • Short $133 Call & Long $138 Put expiring Jan 17
  • Open Profit Loss After Assignment…
  • +$0.22 profit on TLT + short call if assigned
  • ($3.25 credit – $3.03 TLT loss = +0.22 gain from tlt/call)
  • Put starting value -$2.26 current value +$0.07
  • Net Loss = -$1.97/share value -$7,486

Here’s a breakdown of our monthly returns which has only had 1 losing month out of 13 months and averaged just over 1% per month including a 0.5% total return thus far in Jan 2020.

Here’s the results of our Bond portfolio please consider that from October-December the bond portfolio was used as “insurance” against the trade deal breaking down and was not positioned for doubling profits.

Analysis: Today’s trade front runs expected Fed balance expansions a day before the data is released, bad luck last week that Fed reduced its balance sheet.

Today’s trade has a high return low risk profile predicting trouble ahead for the TLT from further expansions of the Fed’s balance sheet in 2020. Balance sheet increases represent the government having trouble selling its debt, thus it ends up in the Fed’s balance sheet and suggests low demand for US debt and is bullish for stocks bearish for US treasuries

These are our open positions P/L on SPY, EEM & GDX

1/8/2020 Trade Alert on SPY

  • 1900 shares entry at $328.83 current $329.75 (+0.92)
  • Short $332 Call & Long $326 Put expiring Jan 17
  • Initial Option Cost -$0.19 current value +$0.01 (-0.18)
  • Net Open Profit = +$0.74 or +$1,406

1/14/2020 Trade Alert on EEM

  • 3800 shares entry at $45.92 current $46.04(+0.12)
  • Long $45.23 Put expiring Jan 24
  • Initial Option Cost -$0.19 current value +$0.07 (-0.12)
  • Net Open Profit = $0.0/share $0

1/9/2020 Trade Alert on GDX

  • 3800 shares entry at $28.12 current $28.47 (+0.35)
  • Long $29 Put expiring Feb 28
  • Initial Option Cost -$1.59 current value +$1.24 (-0.35)
  • Net Open Profit = $0/share or $0

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

TRADE #1. TLT

Step 1. Close out last week’s options trades if you took the trade. If you did not, skip to Step 2.

If you were assigned close your TLT put and re-purchase your TLT shares.

If you were not assigned close the short call and long TLT put and then go to step 2.

Step 2. For every 100 shares of the TLT you own enter one of the following option contracts.

This is our maximum loss or gain on today’s trade alert:

TRADE #2. GDX

Step 1. If you already own the GDX position you can skip this step, we’re holding this position until the week of Feb 28th. If you do not have the GDX position go to step 2. 

Step 2. For every 100 shares of the GDX you own enter one of the following option contracts.

This is our maximum loss or gain on today’s trade alert:

PORTFOLIO BUILDER

PORTFOLIO BUILDER

If you need help getting our trade alerts or have any other questions please contact us anytime at support@portfoliobuilder.io

More Trade Alerts

Leave a Replay

Sign up for our Newsletter

Scroll to Top