September 24, 2014

Trade Alert: 9-23-14 (close)

Late last week I did something a bit unusual. I typically don’t buy options, but I did late last week due to the overbought state in DIA. I’m hoping all of you were able to participate. I’ve decided to lock in the 28.5% profits today. Some of you might prefer to hold on a bit longer, I just want to take my profits and move on to the next trade. As a result I will be doing the following: Sell to Close DIA November Puts (DIA141122P173) for roughly $4.50 Enjoy the profits!!! Andy … [Read more...]

Trade Alert: Selling and Buying, Yes Buying, DIA

Trade Alert: Selling and Buying, Yes Buying, DIA Okay, now that September expiration is behind us, well almost, we can move forward. Here are the next two trades… DIA The underlying ETF is in an overbought state… which means I’m very comfortable selling a bear call spread with a high-probability of success here. Here is the next trade (please pay attention to the options code or opra. Simultaneously: Sell to open the DIA October 2014 175 calls (DIA141018C175) Buy to open the DIA October 2014 176 calls (DIA141018C176) for roughly $0.20 Do not accept less than $0.17 credit to enter this trade. Enter this trade as a spread to avoid paying double commissions. The goal of selling the DIA vertical bear call … [Read more...]

Trade Alert: 9-18-2014

As most of you know our September SPY position is in-the-money (ITM). Expiration is Friday, but due to SPY being ITM and ex-dividend Friday, w will need to close out our position by market close today. If we do not we will be responsible for the dividend. Times like these are a reminder that even though we are using high-probability strategies with an 80%+ probability of success there is always a slight chance a loser will occur. In fact, it will occur. It’s just a matter of time. Anyone that tells you different is an outright liar. Losing trades will happen. Which brings me to the topic I discuss often…position-sizing. As I have said in the past, if you are stressed about a losing position you most likely have too large of a … [Read more...]

The Trades are a Comin’…

High-Probability Options Indicator

The market is setting us up nicely. Hopefully, we open higher in the morning so I can make some trades. Although, even a flat to slightly lower open would do the trick. Subscribers get ready...the trades are a comin'. 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...]

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...]