I continue to look for Money Flow Buy signals that meet my 2017 trading plan.  ( Scroll down in my Blog to read the plan)   A very brief reminder;  I am selling puts on Money Flow Buy signals.  Its a bullish way to acquire stock and reduce cost basis.   

One of my first trades using this strategy was JPM.  Back on January 17th, I sold the FEB $85.00 put and collected 2.17 in premium. 

You can see the MFB signal in the chart above.  At the time, JPM was selling for roughly $85.22,  and on the date of the signal, the -.35Delta option was the 85 put.   Since then, the stock has rallied to roughly 90 bucks.   Well, earlier this week, ahead of February expiration, I rolled my sold put into March expiration.   

I rolled to the -.26D put in March ( I like to stay in .30 -.40 delta,  however there wasn't an available option at the time of the roll)   I am now short the $85.00 MAR put. I collected an additional .65cents credit for the roll.   That means I have now collected $2.82 in premium, meaning that if the stock gets "put to me" I'm insulated from  loss down to $82.18.  Nearly 10 points lower than it currently sits.  I'd love to have the stock "put to me" but, I'll be  happy collecting monthly premiums and reducing my basis 'til that happens.

I have several rolls coming up in the March cycle.... stay tuned!

Happy Trading!

​AA 

Here we go, my third Money Flow Buy of 2017!  Quick review, I'm selling .30-.40 Delta puts in stocks that generate a Money Flow Buy signal.   My hope is that I acquire the stock at a discount.  If the sold put doesn't result in the stock being"put to me", I'll  sell another put  in the next month, each time reducing my cost basis by the amount of premium collected.  

​So, my trade this week was Facebook,  They are past earnings, above a rising long-term moving average,  and strong industry & strong trend.   I've checked all my requirements on this one. 

$FB generated a Money Flow Buy Tuesday 2/7.  I sold the  March '17 Put that fell between .30 - .40 Delta, in this case it was the 130 strike.  I collected 2.30 per contract sold.   If $FB  is below 130 on or a near expiration,  I will  "be put" 100 shares per contract sold... if $FB is above $130 at expiration, I keep the premium collected, and I'll sell another put between .30-.40 delta. 

​

If the stock is put to me this cycle, I will have reduced my cost by $230.00 per 100 shares or 2.30 per-share.  

I also entered a money Flow Buy signal in $GS ( Goldman Sachs).  I must have forgotten to update the blog, sometimes that happens when the day jobs get busy, apologies. 

​

$GS met all of the rules I've set for entry.  Including above a rising long-term moving average,  strong industry & strong trend and past earnings.

Looks like I sold the 235 strike put in March '17 for a 5.00 credit.   ( this strike would have been between 30 - 40 Delta on the day i initiated the trade)   Looks like $GS has given up a little ground since then, as I am down slightly on the trade.   Not to fear, the goal of the strategy is to have the stock put to me, so as long as it dosent give up much beyond $235, I'm a happy camper.  (  Just kidding, I don't camp!) 

I'll keep you posted on both of these trades, as well as my first trade of the year, which was $JPM.   As of the time of publication of this post, I am up 334 bucks on a 2 lot at the 85 strike for the FEB '17  expiration.  Getting close, both in terms of price going ITM and expiration.    I will manage this trade  in the next week and report back. 

​Happy Trading!