How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
Some of the gains have come from the time decay advantage (the short options decaying faster than the long ones) but the biggest part of the gains come from having more out-of-the-money call spreads - the long sides go up in value as the stock rises, and the short side might still end up worthless at expiration so you gain on both sides of the spread.
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
Most of my money is in AAPL options. My second favorite is SPY because I am just betting on the market in general and not any individual company, and the option markets are quite efficient and liquid so decent executions are almost always available.
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
We have rolled many of our calendar spreads to lower strike prices so that we still have a positive theta (the portfolio should gain in value every day the stock remains flat) and we are net delta positive so that if it goes higher we will benefit both from the delta situation and the theta (daily decay).
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
Adjustments on the downside are the same as they are on the upside - you take off some of the highest-strike calendar spreads and replace them with spreads at strikes below the stock price.
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
I want to thank you for a thoughtful statement about individuals who have had an SEC action brought against them. I would like to explain as best I can what happened in my case. There were two main complaints made against me - the major one was that I was managing money for people without being a registered investment advisor because of the auto-trade service offered by OptionsXpress and thinkorswim and some other brokers who placed trades in their customer accounts who had authorized them to follow my trades. The second complaint was a single statement on my website that they believed was incorrect and therefore fraudulent.
Two very large law firms assured me that if I went to court on the first issue, I would win because there was a Supreme Court decision stating that investment newsletters do not have to be licensed - it would be a violation of their first amendment rights. However, they estimated that my legal expenses would be at least $500,000 to fight them in court (and a year or two of my time tied up in court proceedings), and both firms recommended that I accept their $220,000 settlement offer, with my not having to admit that I had done nothing wrong. I did just that.
The second issue (fraud) involved a single statement that was true when I wrote it but a couple of years later, option prices fell to 10-year lows, it was no longer true. The SEC argued that I did not remove it in a timely enough fashion.
For the past seven years since my settlement with the SEC, I have been publishing my newsletter and my recommendations have been executed in my subscribers accounts through auto-trade, and the SEC has not objected to anything I have been doing.
I hope that this will be a satisfactory answer on this issue, although I suspect that less than a dozen people will read my words.
How To Make 25% This Week With Caterpillar Options, And Maybe Next Week As Well [View article]
I agree with your thought process and plan to add some additional spreads at the 87.5 strike and possibly even some at the 85 strike if the after-market weakness seems to be continuing once the market opens.
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
There is a link in my article 2 Strategies For Making Extraordinary Returns With Apple Options that will show every trade made for the first few weeks, and if you subscribe to terrystips.com you can see every trade made for the entire 7 weeks.
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
I don't like selling deep in the money puts (or any options naked) because the margin requirement is so high that your return on investment is peanuts. And when the stock drops 100 points like it did this late spring you could lose a year's worth of short put premium.
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
There's a million ways you can trade these options. Using a short time horizon for the long side has some advantages, however. The ROI is higher when you are right (less money is tied up in the long side so more spreads can be put on) and bid-ask spreads are less with shorter-term options so better prices can be had on the trades.
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
Good question - when we add new calendar spreads on Thursday or Friday the short side is usually in the following week rather than the week with only one or two days remaining.
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
If you want to follow two portfolios that trade AAPL options I would suggest you sign up as a paid subscriber at terrystips.com - the basic cost covers two months of getting every trade made and weekly updates along with graphs like the article included. It is a small cost for an options education.
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
Our results can checked out - every statement is absolutely true. I can't promise future results will be similar. We were betting that AAPL would move higher, and it did. Options give you great leverage, so when you are right you can win big time. The opposite is true if you are wrong. Our portfolio lost substantial money when AAPL fell about $100 after the disappointing April earnings report, so if you are playing options you should be prepared for big swings both ways.
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
Two very large law firms assured me that if I went to court on the first issue, I would win because there was a Supreme Court decision stating that investment newsletters do not have to be licensed - it would be a violation of their first amendment rights. However, they estimated that my legal expenses would be at least $500,000 to fight them in court (and a year or two of my time tied up in court proceedings), and both firms recommended that I accept their $220,000 settlement offer, with my not having to admit that I had done nothing wrong. I did just that.
The second issue (fraud) involved a single statement that was true when I wrote it but a couple of years later, option prices fell to 10-year lows, it was no longer true. The SEC argued that I did not remove it in a timely enough fashion.
For the past seven years since my settlement with the SEC, I have been publishing my newsletter and my recommendations have been executed in my subscribers accounts through auto-trade, and the SEC has not objected to anything I have been doing.
I hope that this will be a satisfactory answer on this issue, although I suspect that less than a dozen people will read my words.
Terry
How To Make 25% This Week With Caterpillar Options, And Maybe Next Week As Well [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]