August 1, 2014

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...]

Get Ready to Sell Premium

7-30-2014 6-49-47 PM

Ah yes...Mr. Market finally answered our repeated requests for a return to volatility. The VIX popped to levels not seen since mid-April. Hopefully, the surge continues. I would absolutely love to see the VIX kick up over 20 or even 25. The push lower today also helped out all of our August expiration trades. And as I have stated over the past few days...subscribers expect to see a wave of trades going forward. Now that volatility is back there should be plenty of opportunities to sell options using high-probability strategies like vertical spreads, iron condors and selling puts. I do expect to see a push higher over the short-term in most of the ETFs we follow. As you can see in the High-Probability, Mean-Reversion Options Indicator … [Read more...]

Just the indicator tonight…

High-probability, mean reversion options indicator

Just the high-probability, options indicator tonight. Not much changed today. Tomorrow should be interesting. Subscribers stay tuned!   If you are a believer in a statistical approach towards investing please do not hesitate to try my options strategies. I use simple mean-reversion coupled with probabilities for each and every trade. Give it a try, it’s free for 30 days. If you haven’t had a chance,  please join my Free Weekly Newsletter, Twitter feed and/or Facebook page. … [Read more...]

The Return of Volatility?

7-29-2014 5-03-32 PM

After hovering around 11-12 since early June, volatility, as seen through the VIX, is finally making it's way back above 13. Of course, there have been a handful of teasers over the past several weeks so the move today is certainly not definitive, but it's worth keeping a close eye on. As options sellers, particularly those of us who like to sell options premium on the major market benchmarks like the S&P 500, an implied volatility below 13 just isn't viable. However, above 13 and we are back in business. Of course, I would prefer to see something in the range of 18-25, even as high as 35, but we will take what we can get at the moment. As for individual ETFs, FXE looks the most interesting. And of course, Apple (AAPL) continues to … [Read more...]

High-Probability Mean-Reversion Options Indicator

7-28-2014 7-06-09 PM

Nothing fancy here. Just the daily indicator. I'm really going to try and keep this updated daily. If it means no associated, then so be it. You've spoken and hopefully I've answered. Enjoy! … [Read more...]