(1a) If assigned repurchase your TLT shares and allow Jan 24 $139 TLT Put to expire worthless (1b) If not buy to close your Jan 24 $136 TLT call.
(2) Per 100 shares of TLT Sell to open Jan 31 $138 TLT Call and Buy to open Jan 31 $140 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.
- 3800 shares entry at $139.03 current value $141.30 (+2.27)
- Short $136 Call & Long $139 Put expiring Jan 24
- Initial credit of +$2.46 to exit trade a debit of -$5.33 (-2.87)
- Net Loss = -$0.60/share or -$2,280
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.
These are our open positions P/L on SPY, EEM & GDX
- 1900 shares entry at $332.15 current $329.95 (-$2.2)
- Short $335 Call & Long $330 Put expiring Jan 24
- Initial Option Cost -$0.20 current value +$0.95 (+0.75)
- Net Open Profit = -$1.45 or -$2,755
- 3800 shares entry at $45.25 current $44.53 (-0.67)
- Long $44.73 Put expiring Jan 31
- Initial Option Cost -$0.28 current value +$0.56 (+0.28)
- Net Open Profit =-$0.39/share -$1,482
- 3800 shares entry at $28.12 current $29.04 (+0.92)
- Long $29 Put expiring Feb 28
- Initial Option Cost -$1.59 current value +$0.85 (-0.74)
- Net Open Profit = +$0.18/share or $684
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 fell -7% and we delivered 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 not assigned close the short call and allow your long TLT put to expire worthless.
If you were assigned then you’ll need to re-purchase your TLT shares and go to step 2, you will also allow your put to expire worthless.
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.