New Theta Driver Trade!

Keeping it short tonight. I will be back with the HPMR indicator tomorrow.

I placed a trade in the new Theta Driver options strategy.

Here is the trade:

(click to enlarge)

I will be back later tomorrow with details.

Summary

SPY remains range-bound!

Nothing New Here: Not much has changed over the past few weeks - range-bound trading persists. It appears we could see the markets move sideways for a few more months. Are the summer doldrums already upon us? How long can SPY stay in this range of roughly $126 to $137? The question is, while I continue trading extremes in the HPMR strategy , how can I take advantage of the range bound movement at the same time. You guessed it – a credit spread! I will discuss this further in Weekly Options Report.

If you haven’t already, don’t forget to sign-up for my Free 30-day trial.

Also, for those of you who live on Facebook. You can access my daily info on the social network as well. Just click on LIKE.

Keep Your Options Trading Simple – Trade Probabilities

What do you think about the markets here? A question I often receive from subscribers or the financial media. My response, I don’t care. Okay, that my be a bit harsh and overstated, but for the most part I really don’t care about the daily news that flows in and out of the market. I am an options trader. I trade strategies based off probabilities. Nothing new here. I just want to teach people how to trade effectively and profit my using my options strategies. Because knowing what is going on in the news and making money are two separate beings. For successful investors its about your strategy, your logic, your process, it doesn’t matter what you think the market is going to tomorrow. This is a concept that is often difficult for the newbie to options.

With that being said, there are several ETFs that have hit short-term extremes. Energy (XLE) is currently on my radar, so subscribers stay tuned. I am also paying attention to the dollar ETF (UUP) as well. The ETF has moved into a short-term oversold extreme.

You see, it doesn’t pay for me to try and absorb every financial story out there, all I care about is when my indicators hit extremes and a act on them to hopefully make a profit. I allow probabilities, not the talking heads , to define my options strategies. Anyway….

We have had a few weeks of sideways trading and as a result short-term extremes have been nonexistent. Yes, there have been a few potential short-term set-ups, but they never truly entered into a short-term extreme. GLD was certainly close, but the trade never came to fruition.

I also, wanted to reiterate yesterday’s sentiment regarding the High-Probability, Mean-Reversion strategy. As we all know the strategy enters periods of stagnant trading. Again, this is a long-term approach to options trading and is to be expected.  Boring – maybe to the aggressive crowd out there. But, I am more interested in the profitable trades. Trades that I am confident in due to the short-term extremes that have entered the stock market – high-probability trades. I think the win ratio and returns of my options strategy speak for themselves.

Ultimately, this whole endeavor is about creating and teaching you a successful way to make money using stock options. I have found that and again, I hope you can join me for the ride.

Theta Driver Options Strategy

The Russell 2000 (IWM) is four days into the August options expiration cycle and the high-beta index is now $1.10 higher than when I placed the trade in the Theta Driver options strategy. The credit spread that I added over 20 days ago, is worth $.66, or $.32 higher than the price I sold for the IWM credit spread. I am still quite comfortable with trade and will continue to allow the statistics to play out. Time decay should really start to set in over the next few weeks.

I will be issuing another credit spread trade tomorrow so stay tuned. I plan on adding a position in one of the hottest precious metals so stay tuned!

*I will be offering my new Credit Spread Strategy after August Expiration so if you are interested please email me and I will save you a spot. I will be limiting the amount of subscribers. The cost of the new service will be the same as my High-Probability, Mean-Reversion strategy – $99 per month. Please do not hesitate to email me with any questions that you have.

Here it is: the first trade in my new Credit Spread Options Strategy. I will continue to go over the trade in full detail in the Free Weekly Options Report and here on the blog.

Market Mumbo Jumbo

• Daily options report

Summary

SPY remains range-bound!

Nothing New Here: Not much has changed over the past few weeks - range-bound trading persists. I appears we could see the markets move sideways for a few more months. Are the summer doldrums already upon us? How long can SPY stay in this range of roughly $126 to $137? The question is, while I continue trading extremes in the HPMR strategy , how can I take advantage of the range bound movement at the same time. You guessed it – a credit spread! I will discuss this further in Weekly Options Report.

If you haven’t already, don’t forget to sign-up for my Free 30-day trial.

Also, for those of you who live on Facebook. You can access my daily info on the social network as well. Just click on LIKE.

Options Strategy Indicator – Overbought / Oversold Extremes

The Options Strategy that Outperforms

We have had a few weeks of sideways trading and as a result short-term extremes have been nonexistent. Yes, there have been a few potential short-term set-ups, but they never truly entered into a short-term extreme. GLD was certainly close, but the trade never came to fruition.

As we all know the strategy enters periods of stagnant trading. Again, this is a long-term approach to options trading and is to be expected.  Boring, maybe to the aggressive crowd out there. But, I am more interested in the profitable trades. Trades that I am confident in due to the short-term extremes that have entered the stock market – high-probability trades. I think the win ratio and returns of my options strategy speak for themselves.

Ultimately, this whole endeavor is about creating and teaching you a way a successful way to make money using stock options. I have found that and I hope you can join me for the ride.

Theta Driver Options Strategy

The Russell 2000 (IWM) is three days into the August options expiration cycle and the high-beta index is only $0.37 higher. The credit spread that I added over 20 days ago, is worth $.45, or $.11 higher than the price I sold for the IWM credit spread. I am still quite comfortable with trade and will continue to allow the statistics to play out. Time decay should really start to set in over the next few weeks.

I will be issuing another credit spread trade over the next two days so stay tuned. I plan on adding a position in one of the hottest precious metals so stay tuned!

*I will be offering my new Credit Spread Strategy after August Expiration so if you are interested please email me and I will save you a spot. I will be limiting the amount of subscribers. The cost of the new service will be the same as my High-Probability, Mean-Reversion strategy – $99 per month. Please do not hesitate to email me with any questions that you have.

Here it is: the first trade in my new Credit Spread Options Strategy. I will continue to go over the trade in full detail in the Free Weekly Options Report and here on the blog.

Market Mumbo Jumbo

• Daily options report
• Netflix Straddle

Summary

SPY remains range-bound!

Nothing New Here: Not much has changed over the past few weeks - range-bound trading persists. I appears we could see the markets move sideways for a few more months. Are the summer doldrums already upon us? How long can SPY stay in this range of roughly $126 to $137? The question is, while I continue trading extremes in the HPMR strategy , how can I take advantage of the range bound movement at the same time. You guessed it – a credit spread! I will discuss this further in Weekly Options Report.

If you haven’t already, don’t forget to sign-up for my Free 30-day trial.

Also, for those of you who live on Facebook. You can access my daily info on the social network as well. Just click on LIKE.

Options Strategy Indicator – Overbought / Oversold Extremes

Gold Hits a Short-Term Extreme

*Over the short-term Gold (GLD) has pushed into ‘very overbought’ extreme which could trigger a trade over the next few trading days. If gold happens to move higher and thereby push further into ‘overbought’ territory I will most likely enter a trade over the next few days. As always, subscribers, be on the lookout for a real-time trade alert and tweet of the trade.

New Credit Spread Options Strategy – Beta

The market moved lower again today and the Russell 2000 (IWM) is now 4.3 percent below the 86 strike. I sold a vertical spread with 53 days left until August expiration for a $.34 credit and now the spread is worth approximately $.45. The two week rally that occurred during the latter part of June/beginning of July sent the price of my spread higher, but the recent decline has pushed the spread back to close to break-even.

Once July expiration passes theta (time-decay) will accelerate. If the underlying ETF trades around this area or moves lower I should be able to get out of the spread for a nice gain in the next few weeks. Stay tuned!

In the meantime, I am looking at initiating a spread on the VIX and possibly a spread on Gold. I will be discussing the potential trades in my upcoming weekend report.

*I will be offering my new Credit Spread Strategy after August Expiration so if you are interested please email me and I will save you a spot. I will be limiting the amount of subscribers. The cost of the new service will be the same as my High-Probability, Mean-Reversion strategy – $99 per month. Please do not hesitate to email me with any questions that you have.

The Strategy

Again, I like my new strategy because now both of my options strategies are working in unison. I am able to collect premium in the Credit Spread strategy while patiently allowing time decay to works its magic. And, while I allow the time decay to eat away at my credit spread I am able to play short-term extremes in the ETFs I follow in the High-Probability, Mean-Reversion strategy. Intermediate and short-term options strategies at work.

Just like diversifying a portfolio of stocks, you should do the same when investing with options – diversify your options strategies.

Here it is: the first trade in my new Credit Spread Options Strategy, officially named Crowder’s Credit Spreads. I will continue to go over the trade in full detail in the Free Weekly Options Report.

Market Mumbo Jumbo

• Daily options report

Summary

SPY remains range-bound!

Nothing New Here: Not much has changed over the past few weeks - range-bound trading persists. I appears we could see the markets move sideways for a few more months. Are the summer doldrums already upon us? How long can SPY stay in this range of roughly $126 to $137? The question is, while I continue trading extremes in the HPMR strategy , how can I take advantage of the range bound movement at the same time. You guessed it – a credit spread! I will discuss this further in Weekly Options Report.

If you haven’t already, don’t forget to sign-up for my Free 30-day trial.

Also, for those of you who live on Facebook. You can access my daily info on the social network as well. Just click on LIKE.

Options Strategy Indicator – Overbought / Oversold Extremes

Options Strategies Continue To Shine In This Volatile Market

I am going to keep it rather short tonight.

The market moved lower today, but the bears had a rough time pushing the major benchmarks decisively lower. We could still see a push lower, but over the short-term the direction leans towards the bulls.

However, there are a few international ETF’s that have pushed into an oversold state and a few could be potential plays going forward. Currently EWZ, EWP and TBT are on my radar for short-term plays and as always I will inform all of you (my paid subscribers) in real-time if and when a trade occurs.

New Credit Spread Options Strategy – Beta

The two week push by the bulls has pushed the value of my credit spread to approximately $.51 which is $.17 higher than my original price. For all you newbies, since this is a credit spread I have to buy the spread back so the spread is currently down $.17. I sold the spread for $.34.

Thirty-eight days remain until August options expiration so time decay hasn’t truly set in, but once July options expiration occurs (end of this week) theta (time decay) should begin to ramp up. Couple that with another steep push lower and I would expect to see premium get sucked out of the spread. If this does occur I plan on taking off the spread for a decent profit. Certainly a nice way to start the strategy.

The Strategy

Again, I like my new strategy because now both of my options strategies are working in unison. I am able to collect premium in the Credit Spread strategy while patiently allowing time decay to works its magic. And, while I allow the time decay to eat away at my credit spread I am able to play short-term extremes in the ETFs I follow in the High-Probability, Mean-Reversion strategy. Intermediate and short-term options strategies at work.

Just like diversifying a portfolio of stocks, you should do the same when investing with options – diversify your options strategies.

Here it is: the first trade in my new Credit Spread Options Strategy, officially named Crowder’s Credit Spreads. I will continue to go over the trade in full detail in the Free Weekly Options Report.

Market Mumbo Jumbo

• Daily options report
• Options in a High-Yield Portfolio
• Nine Straight Years of Record Options Volume

Summary

SPY remains range-bound!

Nothing New Here: Not much has changed over the past few weeks - range-bound trading persists. I appears we could see the markets move sideways for a few more months. Are the summer doldrums already upon us? How long can SPY stay in this range of roughly $126 to $137? The question is, while I continue trading extremes in the HPMR strategy , how can I take advantage of the range bound movement at the same time. You guessed it – a credit spread! I will discuss this further in Weekly Options Report.

If you haven’t already, don’t forget to sign-up for my Free 30-day trial.

Also, for those of you who live on Facebook. You can access my daily info on the social network as well. Just click on LIKE.

Options Strategy Indicator – Overbought / Oversold Extremes

Patient, Methodical Approach Leads to Further Gains in the High-Probability, Options Strategy. Portfolio Up 47.9% Since Inception.

On Wednesday I entered into some IWM puts. Of course, the market raced higher and my trade was quickly underwater, but I knew that the probability of a short-term decline was extremely high so I placed another trade and the following day the market declined. I stuck with the trade over the weekend because the short-term overbought reading had not worked itself out so the probability of a move lower remained high.

Today, the market pushed significantly lower at the open so I was able to get out of my combined position for a nice profit that pushed my the High-Probability, Mean-Reversion options strategy to new high of 47.9% since its inception back in November.

New Credit Spread Options Strategy – Beta

The surge last week pushed the underlying IWM to a high of $85.97, only a few cents from touching the 86 strike. This is where asset allocation/ position-sizing comes in. I could go over various adjustments that I could make including opening new positions, exit the trade early, roll the trade up or forward and a few others. But, I prefer to let the statistics play out. I know that if I stay disciplined and allow the statistics to work for me I will succeed over the long-term.

Never allow a position take to have a dramatic impact on your options portfolio. This frees you of the inevitable psychological constraints and allows you to focus on letting the probabilities to work themselves out.

Basically, when probability is on your side, it only makes sense to allow the probabilities to work for you. Entering expensive or risky hedges or artificial stop losses act only as a detriment because they do not allow the probability of the trade to work itself out.

The Strategy

Again, I like my new strategy because now both of my options strategies are working in unison. I am able to collect premium in the Credit Spread strategy while patiently allowing time decay to works its magic. And, while I allow the time decay to eat away at my credit spread I am able to play short-term extremes in the ETFs I follow in the High-Probability, Mean-Reversion strategy. Intermediate and short-term options strategies at work.

Just like diversifying a portfolio of stocks, you should do the same when investing with options – diversify your options strategies.

Here it is: the first trade in my new Credit Spread Options Strategy, officially named Crowder’s Credit Spreads. I will continue to go over the trade in full detail in the Free Weekly Options Report.

Market Mumbo Jumbo

• Daily Options Report

Summary

SPY remains range-bound!

Same message: Not much has changed over the past few weeks - range-bound trading persists. I appears we could see the markets move sideways for a few more months. Are the summer doldrums already upon us? How long can SPY stay in this range of roughly $126 to $137? The question is, while I continue trading extremes in the HPMR strategy , how can I take advantage of the range bound movement at the same time. You guessed it – a credit spread! I will discuss this further in Weekly Options Report.

If you haven’t already, don’t forget to sign-up for my Free 30-day trial.

Also, for those of you who live on Facebook. You can access my daily info on the social network as well. Just click on LIKE.

Options Strategy Indicator – Overbought / Oversold Extremes