New Trade: Per 100 shares of EEM
If you already own the EEM position and put option protection you have no action today. If you’re just buying EEM today also buy one Jan 10, 2020 $44.23 Put per 100 shares of EEM. Ask questions in our live webinar at 10AM ET today, next trade Thursday Noon ET. Trading is risky see disclaimer below.
Current Open Positions:
- 3800 shares entry at $44.21 current $45.56
- Long $44.23 Put expiring Jan 10
- Initial Option Cost -0.61 current value +$0.35
- Net Open Profit = +$0.09/share or $342
- 1900 shares entry at $321.55 current $321.21
- Short $322 Call, Long $321 Put expiration Dec 27
- Long $323 Call expiration Dec 30
- Initial Option Cost -0.54 current value +$0.58
- Net Open Profit = -$0.30/share or -$570
- 3800 shares entry at $136.45 current $135.95
- Short $134 Call Dec 27 & Long $137 Jan 03 Put
- Initial Collar +$1.33 current value -$0.59
- Net Open Profit = +$0.24 or +$912
- 3800 shares entry at $27.46 current $27.95
- Long $28 Put expiring Jan 10
- Initial Collar -$1.15 current value +$0.54
- Net Open Profit = -$0.12 or -$456
Here is our current asset allocation recommendation:
Here’s a breakdown of our monthly returns which has only had 1 losing month out of 11 months and averaged ~1.36% per month.
New Trade Alert Step-By-Step Instructions
Step 1. If you took last week’s trade leave your long put option open and make no changes. If you’re new skip to step two!
Step 2. Per 100 shares of EEM enter the following option collar.
This is the maximum P/L we can achieve.
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.