Live Fig Leaf (Long Diagonal) Trade in WMT

With WMT around 98.75 , I bought 1  Jan 11  94 Call and Sold 1  Dec 14  98 Call for a 3.91 Debit.  Looking to make around 10% on this trade, so I would sell out  for 4.30 Credit. If the spread trades under $3.50, a loss of 10%, would get out.

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 very toxic and volatile now and not for the faint of heart. This also is an 11 Day Trade, Dec 7 expiration. My Plan is to buy the spread back for .80, I sold for 1.39 credit, that would be a 7% return on my $861 Capital. If AAPL continues down , would exit trade if the spread hit 2.25. That would be a loss of 10% on my capital of $861.

Our once a year November Online Class Sale ends Friday!  We are offering 33 % discount on all online classes, whether you buy 1 or 5. Great opportunity to pick up some extremely practical classes at a great price!

Thanks, Dan

Blog Update on AAPL Put Credit Spread  11/28/2018

Monday, Nov 26, Sold AAPL Put credit Spread when AAPL was around 172.50, the Dec 7 155/165 Puts for 1.39 Credit, bought it back today with AAPL at 176.35 for .63 Debit. Capital and Risk was $861. We made $76 on $861 or 8.8% return in 2 days for every 1 contract.

Thanks, Dan

 

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!

Bearish Natural gas spread

UNG, the etf for natural gas is trading near highs not seen since the middle of last winter. A short term bearish butterfly looks interesting  here to take advantage of a pullback that may be coming. As I write this, UNG is trading around $26.60. I am looking to place the trade below at a debit of around $1.30 per contract. Looking to close the trade at either a 10% profit or a 10% loss. Looking for UNG to decline to the $25 to $26 area in the short term.

Nov 2nd expiration:

Buy one 28 put

Sell two 25 puts

Buy one 22 put

 

Mark Fenton

mark@sheridanmentoring.com

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.

 

SOM TV Trades from Tuesday Jul 31

AAPL  Iron Condor for Earnings in the Aug 3  Expiration

S 1  Aug 3  200 C, B 1  Aug 3  205 C,  S 1  Aug 3  180 P,  B 1  Aug 3  175 P,  1.06 Credit

With AAPL + 8.61 at 198.90  , the Iron Condor is trading at .99, we are up a small bit. We are about 7 points from the short call strike of 200 with today, Thursday , and Friday till this trade expires. The position Greeks for 1 contract are -32 Deltas short and 15 Theta  and -4 Vega. The high today is 199.26. If we break 200, the short strike, I would adjust the trade by buying the 190/195 Call spread to narrow the width of the call side 5 points and reduce the short deltas. Bottom Line:  Earnings are out , we are up a small amount of money and have a plan if the short strike is threatened.

AAPL  Bearish Butterfly for Earnings in the Aug 10 Expiration

B 1  195 P, S 2  185 P,  B 1  175 P,  2.60 Debit. With AAPL up 8.61  at 198.60, we were wrong on this speculative Butterfly and sold it out today for 1.29 Credit. Wanted to cut the losses , we were wrong. For this butterfly to make money, we need it to go towards the short strike by next week and the Aug 10 Expiration. That would be 185 in AAPL by next week or near that price, and frankly, doesn’t look like that probably will happen. If I stayed in the Butterfly hoping for a decline in the next week, I could watch the 2.60 debit go to zero. I basically pared the loss in half.

SPOT  Iron Condor

Iron Condor in Spotify Aug 10 Expiration.  S 1  190 C, B 1  195 C,  S 1  180 P, B 1  175 P,  2.55 Credit. Currently trading at 2.45 with SPOT at 182.34, not much going on.