Decided not to roll $KBH, as the short strike got away from me, so we "settled" for a 24% gain. Here's a look at the ITM Diagonals strategy using Money Flow Buy and Relative Strength Buy Signals so far.
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Today, I liquidated $ETR on a touch of the upper volatility band.  This was my first equity trade using the Oversold Buy swing trading strategy, so the return percentage compared to options is much smaller. However, in terms of actual profit dollars, it was the highest grossing trade of the year using this strategy. That's the trade off between stock and options, difference in buying power reduction and differences in % P/L due to leverage. Otherwise, I followed the exact same rules as usual. Because we've just been through earnings seasons, I only have stocks left in the portfolio. Looking for an opportunity among optional stocks.  Updated results for the In The Money Diagonals Trading Strategy below. So far 3 winning trades, 2 losing trades, with 5 results still pending. Click the tab in Trading Results to get a closer look and to see the rules.  An overbought stock market, earnings and a lack of optionable Oversold Buy signals liquid enough to execute the strategy forced me to buy stock this week -- $ETR. This very bullish Utility stock moved nicely in my favor this week after signaling Oversold Buy, and I hope it busts the slump we've experienced with our Oversold Buy swing trading strategy recently. With an $.87 dividend being paid this week, it didn't make sense to try to buy a long dated call. Stock makes more sense.  A couple of new positions, $STT and $KBH, plus a lot of movement in an out of short call options...but no new closing trades this week. Trading Rules here.  I've exited my first two ITM diagonal trades profitably. Entry, exit and all roll records below. $RCL and $UNH yielded better than 40% over approximately a 2 month holding period. Rules and strategy videos here.  Options Insights & Spread Trading for Quick and Reliable Profits April 20th | 4:15 - 5:15 pm (ET) Interested in tapping into a lucrative part of the options market? With credit spread trading, you can! Find out in this special webinar hosted by three world-renowned trading experts: Bob Lang, options expert and founder of Explosive Options, Marc Chaikin, CEO & Founder of Chaikin Analytics, and Portfolio Manager for Strategic Portfolio Solutions, Suz Smith. They’ll cover everything you need to know about spread trading, including the secrets to setting up trades, finding opportunities, and managing risk. Plus, register now and you’ll also discover:
Two more trades in our Oversold Buy Strategy that didn't work out. It's always tough take a loss, but I'd feel worse breaking my rules and taking a worse loss later. I know, the market and these stocks will reverse tomorrow. The market knows when I trade and is always out to get me. :-)
Here's how we're doing for the year so far.  Well, this is ironic. Times up for both me and United. My rules for the oversold buy strategy call for liquidation of the long call after a touch of the upper volatility band or 30 days, whichever happens sooner. I won't have to be dragged from this loser. I'll update the results shortly.  I have begun to buy back or roll short calls within the long call diagonal strategy. This is like covered calls, but with the underlying being a deep in the money long call option instead of stock. As April expiration approaches, I'll be rolling or overwriting with May premium as long as the underlying strock remains in an intermediate uptrend. More on the strategy here.  |
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June 2017
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