April 28, 2017

Trade Alert (close) – Locking in Profits (SPY)

We sold the SPY August 198/200 vertical call spread back on the 19th of June for $0.70. Now the spread is worth roughly $0.18. As are result, I want to lock in the 35.1% profit, free up capital and move on to selling more premium. Next week will be a big one for us. Volatility is back which means we will have plenty of opportunities to sell premium. Here is the trade: Simultaneously: Buy to close the SPY August 2014 198 calls Sell to close the SPY August 2014 120 calls for roughly $0.18 Enter this trade as a spread to avoid paying double commissions. I will be back later this evening with a full update. Kindest, Andy … [Read more...]

Trade Alert 6-19-14

Trade Alert – June Expiration Cycle (Important Update) Before I get to the importance of why we need to trade out of our positions today I want to discuss a few things. Well, as I stated in the update last night…June expiration was a tough one. We’ve had a long string of winners. It has been quite the run, but now Mr. Probability is teaching some of us a hard lesson. No one said trading was easy. In fact, it’s very difficult…because it takes unwavering persistence and focus. Expiration cycles like what we have witnessed in June should be expected. However, we have to realize that this month was a true anomaly. Implied volatility, as seen through the VIX, has reached a seven year low and is only a few ticks from a historic … [Read more...]

Trade Alert 6-6-14 (open)

I think the chart below says it all. The market is in a very overbought state so I expect mean-reversion to kick in with full force very soon. Here just one way that I’m taking advantage. Expect to see a few more trades coming your way…maybe today, maybe Monday. It just depends on Mr. Market. I'm going with a more conservative trade now, with the intent of again, adding a few trades with lower probability (although not that much lower) in the coming days. Here is the trade. Simultaneously: Sell to open IWM July 2014 121 calls (IWM140719C121) Buy to open IWM July 2014 123 calls (IWM140719C123) for roughly $0.23 (Do not accept less than $0.20 credit to enter this trade.  Enter this trade as a vertical call spread or … [Read more...]

Trade Alert 5-22-14

As I stated a few days ago in the blog volatility looks incredibly oversold over various time frames. As a result, I have decided to place the following trade…our third for the June expiration cycle. Here is the trade. Simultaneously: Sell to open the SPY Jun14 36 puts (UVXY140621P36) Buy to open SPY Jun14 35 puts (UVXY140621P35) for a net credit of $0.32 (Do not accept less than $0.28 credit to enter this trade.  Enter this trade as a vertical put spread or bull put spread to avoid paying double commissions.) Basically as long as UVXY stays above 36 through June expiration (29 days), the trade will be a success. That’s right, we can be wrong in our directional leaning and still have a profitable trade….again, the … [Read more...]

Trade Alert 5-12-2014

A New Trade in SPY As you can see from the chart below SPY has pushed into a short-term “overbought” state. As a result I want to take advantage of the short-term extreme by placing a trade.  Here is the trade: Sell to open SPY June 195 calls (SPY140621C195) Buy to open SPY June 197 calls (SPY140621C197) for roughly $0.26. Do not accept less than $0.23 credit to enter this trade. Enter this trade as a spread to avoid paying double commissions. The goal of selling the spy vertical call (credit) spread is to have the underlying stock, in this case SPY stay below the 195 strike through June 21st (39 days). SPY would have to move roughly 2.9% from its current price of $189.48 before the trade begins to reach … [Read more...]

Trade Alert 5-2-2014

In the blog I've been discussing the weak seasonal stretch ahead coupled with near overbought readings in several of the ETFs we follow. It's been several weeks since our last trade, but the wait was worth it as we have several good trading opportunities staring us in the face. Here is the first trade of several that will be coming over the next few trading days. Sell to open the SPY June 194 calls (SPY140621C194) Buy to open the SPY June 196 calls (SPY140621C196) for a net credit of roughly $0.35. Do not accept less than $0.32 credit to enter this trade. Enter this trade as a spread to avoid paying double commissions. The goal of selling the SPY vertical call (credit) spread is to have the underlying ETF, in this case SPY … [Read more...]

Trade Alert 3-25-14

We've had an incredilbe run since last May...and with the return of implied volatility we should continue to see success using our high-probability, mean-reversion strategies. I will be back later this week with at least two more trades including a Weekly. Stay tuned! SPY Vertical Call Spread Simultaneously: Sell to open the SPY April 191 calls (SPY140419C191) Buy to open the SPY April 193 calls (SPY140419C193) for $0.24 (Do not accept less than $0.22 credit to enter this trade.  Enter this trade as a vertical call spread to avoid paying double commissions.) It’s a small credit I know, but with only 24 days left and given the fact we are in an overbought state there is the possibility to leg into a condor here. If not, no … [Read more...]

Trade Alert 2-28-14

Crowder Options – Trade Alert (open) I’ve been sitting on the sidelines waiting for this insane rally to end and now that we are officially in a short-term overbought state in almost every ETF I follow I want to place a few trades with a high-probability of success. SPY Vertical Call Spread Simultaneously: Sell to open the SPY March 191 calls Buy to open the SPY March 193 calls for $0.19. (Do not accept less than $0.17 credit to enter this trade.  Enter this trade as a vertical call spread to avoid paying double commissions.) It’s a small credit I know, but with only 21 days left and given the fact we are in an extreme overbought state there is the possibility to leg into a condor here. If not, no worries I’ll gladly … [Read more...]

Trade Alert 2-12-14

Our DIA trade looks to be a winner, so it's time to add some more premium to the mix. Given the recent advance in the market now is a good time to add a bear call spread to the mix. Here is the trade: Sell to open March SPY 188 calls (SPY140322C188) Buy to open March SPY 190 calls (SPY140322C190) for a credit of $0.30 Do not accept less than $.26 for the spread. Trade as a vertical call spread to avoid double commisions. Kindest, Andy … [Read more...]

Trade Alert – 1-29-14

Subscribers...check your emails to make sure you received the following trade alert. Sell to open February DIA 150 puts Buy to Open February DIA 148 puts for $0.21 Kindest, Andy   … [Read more...]