Trade results That I posted on 9/27/15 - All profitable

Here is how we make money the easy way. Even though we've been bearish markets for a long while via credit call spreads that paid very well, we do take longs (via credit put spreads) when we think markets are over-reacting. The following trades were posted for premium members of create income with option spreads (a sister service to this one on marketfy) on 9/24/15.

There is no need to swing for the fences with every at bat. Easy does it. I am proud to deliver results that beat the markets. But the impressive part about this is that I do it the easy way. I am not sweating the day-to-day movements. Those who buy the markets to be bullish fear crashes (no buffer); those who short the markets fear spikes (also no buffer); they both lose money right away. We use credit spreads with ample buffers so we can sleep knowing that we have time (long days till expiration) and space (ample buffers) protecting our dollars at risk (which by the way is finite.

I still think that they should go to max gains but it's nice to book profits early and not risk another flash crash. Here are the results:

  • AAPL bullish Credit put spread April16 80/75 for .5 (yield 8%+); 90% theoretical chance of success (AAPL 113 then). => Now Apple 111 and the spread is .39 = 22% of max gains which is bookable for a fast scalp. Still too long on the clock. Yiel would be 2.2% in such a short period of time and without breaking a sweat. Easy peesy.
  • or AAPL bullish Credit put spread April16 85/80 for .65 (yield 14%+); 85% theoretical chance of success (more yield BUT lower chance of success). => now costs .54 to close and that's 17% of max gains and yield of 2.5% yield.
  • SPX bullish Credit put spread Jun16 1350/1325 for 1.9 (yield 8%+); 90% theoretical chance of success (SPX was 1918) => now costs 1 to close and that's 47% of max gains and yield of 3.9% yield with absolutely no worries at all.
  • SPX bullish Credit put spread Jan8th 2016 expiration 1550/1540 for .7ish (yield 7%+); 90% theoretical chance of success. Closer in time so if we don't crash has a faster payout but at the expense of smaller safety zone. => now costs .2 to close and that's 70% of max gains and yield of 5.4% yield. again with no sweat what so ever!
  • Or SPY instead with bullish credit put spread Jan Expiration 162/161 for .11 per contract ( can go up a buck if I want to). 90% theo chance of success and 12% potential yield. Spy was 191.7 => now costs .03 to close and that's 72% of max gains and yield of 9% yield. with zerio trouble
  • RUT bullish credit put spread (more aggressive) Jan expiration: 900/890 credit put spread. pays .85 which is 9% potential yield. 90% theo chance of success. RUT was 1128. => now costs .3 to close and that's 65% of max gains and yield of 6% yield.
  • OR I can do this with the IWM: Jan credit put spread 96/95 for .13 per contract. 90 theo chance of success and 15% yield on risk. IWM was 112.2. => now costs .07 to close and that's 46% of max gains and yield of 7% yield.

Nic.

Posted to Create Income Weekly on Oct 16, 2015 — 10:10 AM
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