Entries by Dan Sheridan

SPX Iron Condor

Yesterday during a webinar with Ally Invest, I put on an Iron Condor in Sep 27 expiration, 46 days out and with 5 wide credit spreads. Sold 3070 Call and Bought 3075 Call. Sold 2660 Put and Bought 2655 Put. Total Credit $1, and Risk $400. Looking for 10 percent profit on $400 of risk or Capital and don’t want to lose more than 15% of $400.   Dan Sheridan dan@sheridanmentoring.com  

NFLX: Pre-Earnings Calendar

NFLX 374.20 around 11:20 central on Monday June 24. Buy 1 July 19, 375 Put and Sell 1 July 5, 375 Put for $9.31 Debit, Margin/Risk $931. Earnings are the week of July 15-19, probably July 17. NFLX has been range bound since late Jan-early Feb, between $335-$385. Looking for that to continue till it doesn’t! We are buying an expiration affected by earnings and selling an expiration that will expire before earnings. The Implied Volatility of long strike should stay high and go higher and Implied Volatility of Short should not go up much and eventually go down. Goal is to get out of trade by Friday. Looking for 7-10 % return on Capital of $931 and don’t want to lose more than 10-12% of the Risk/Margin of $931. Will take off trade for profit of around 8% when the spread goes to around $10.05. If spread narrows because of a big price move, will exit spread for around an 10-12% loss when the Spread trades $8.30. Our 9th annual Chicago Seminar with 13 speakers is September 5-6 at the beautiful Gleacher Center in Chicago. We are running a special bonus this week for those who attend live, clink […]

MSFT Cash Secured Put Alternative ( Put Credit Spread)

Yesterday I sold the MSFT Jun 21  115-105 Put Spread for .75 Credit. Today with MSFT at 122.47  +2.43, the spread is trading at .52. The risk or Margin on the trade is $925. We are trying to make 6% of the Margin or Risk,  $55. For a Profit, I will have an order in to close for an .20 Debit. If MSFT goes back down, I would exit the trade if the spread exceeds 1.70. I can link both orders with an OCO .MSFT Cash Secured Put Alternative ( Put Credit Spread)

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.