Entries by Dan Sheridan

Cash Secured Put Alternative in AAPL

Do I love AAPL at these prices? No! Does it feel like trying to catch falling knives and trying to pick a spot where AAPL will bounce?  Yes!  I am taking  a short term contrarian position with a put credit spread in AAPL. Do I think this is the best candidate out their ?  No! I like the price charts better in the following stocks for Cash Secured Puts:  CMG, MCD,  UNH,  ULTA,  VMW,  AZO,  CI, CME,  AAP,  NEE,  CLX, ANTM, and others. Looked at Put credit spread earlier in AZO, but liquidity stinks! Easier to go to AAPL and it’s great liquidity , than sort through other less liquid candidates with much nicer bullish price charts. Back to AAPL and my purely short term contrarian play. The Trade is B 1  Dec 7  155 P and Sell 1  Dec 7  165 P for 1.39 Credit, AAPL was at 172.35 . The risk is $861. Right after I did the trade, AAPL dropped to 171 area and the spread was trading at 1.64! As Charlie Brown would say, Ugh!Now at 12:30 central, stock has come back to 171.90 -.39 and the spread is trading around 1.42. Bottom line, AAPL still […]

AAPL Cash Secured Put Alternative

Around 11:30 central today, AAPL was at 199.66 -7.82 for the day. Friday was down pretty good also because of earnings. Today, I took a neutral to Bullish long term stance with AAPL and did a put credit spread instead of a very expensive cash secured put ( simply a short put). I sold the Nov 23 190  Puts  and didn’t like the high margins of a short put, so I bought a 180 Put against it. I did the credit spread for 1.60 credit. A little less than 3 hours later, I bought back the spread for 1.16 Debit with AAPL near 201.5 at 2:17 pm central, a return of over 5%. My plan was to take 10%, that would mean buying back the spread for .80 Debit.  But my impulsiveness had a hard time turning down over 5% in less than 3 hours!

Live Iron Condor in SPX

(The below trade was put on earlier today in a webinar with ally invest.) Today around 11:30 am central, we put on an Iron Condor with SPX around 2760 and VIX just under 22.  The trade was in the Oct 26 Expiration. B 1  2860 C, S 1  2850 C, S 1  2630 P, B 1  2620 P, total credit 2.20 , margin/risk  $780. Plan is to take off for about 8% profit or 1.55 Debit. If spread goes over $3 get out for 10% loss. Dan Sheridan dan@sheridanmentoring.com

Live Trade Today in SPX- Ratio Call Fly

(The below trade was put on earlier today in a webinar with ally invest.) B 1 Oct 17 2930 C, S 3 Oct 17 2940 C, B 1 Oct 17 2950 C, 1.80 Credit, Risk or Margin $820. Max $180 credit on downside or 21% on Capital. Plan on downside would be to buy back the spread at 1.20 debit and make around 7%. If the SPX goes up to 2905, I might look to buy the 2930-2940 Call spread in the Oct 17 Expiration , to reduce my short Deltas.

Live trade for today

Live RUT Calendar I put on during Sheridan TV today with RUT around 1715. B 1  Oct 5  1715 C, S 1  Sep 21  1715 C,  8.95 Debit. Look for 6% in next 1-2 days, sell out for 9.50 Credit. If spread goes under 8.30,down 8%  get out. Thanks, Dan Sheridan

Live Trades from Todays SOM TV Episode

Spec Directional Trade with AMZN at  $1961  -33. Bullish Butterfly looking for a slight rebound over next  week.  Sep 14 Expiration.  Buy 1  1985 C, S 2  2000 C, B 1  2015 C,  1.20 Debit. Looking to sell this out for 1.60 Credit or higher. Income Trade in SPX. 15 day Butterfly in the Sep 15 Weeklys. B 1  2840 C, S 2  2880 C, B 1  2915 C,  13.15 Debit. Looking to sell out the spread for 13.95 credit or higher over the next 1-3 Trading Days. Dan Sheridan

SheridanTV Live Trades from Thursday Aug 2

#1  GLD: Sept 21 Expiration, Bullish Butterfly.  B 1  114 C, S 2  117 C, B 1  120 C  .82 Debit. Spread trading around .88-.89 area today with GLD trading higher at 115.06  +.54.   #2  NFLX:  Aug 10 Expiration, Bullish Butterfly.  B 1  342.5 C, S 2  352.5 C, B 1  362.5 C,  2.35 Debit. Spread Trading about .30 lower today with NFLX at 340.70 -3.78.   #3  SPX:   Short Term Butterfly. Aug 10 Expiration. B 1  2800 C, S 2  2830 C, B 1  2860 C,  11.80 Debit. Spread trading around the same price as what I paid with SPX today at 2836  +9. Watch yesterdays episode below.