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Dr. Terry Allen

 
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  • An Easy Options Strategy For Apple Bulls To Protect Against A $50 Drop In The Stock Price [View article]
    The first part of your calculation is accurate but the second is not. The Dec 620 put which is $10 out of the money with 28 days of remaining life should be worth in the neighborhood of $30, not the $13.70 you have calculated. The Dec 610 puts will be worth closer to $20 than the $10.3 you are using.
    Oct 5 09:12 AM | Likes Like |Link to Comment
  • An Easy Options Strategy For Apple Bulls To Protect Against A $50 Drop In The Stock Price [View article]
    I can understand why it is confusing. If the stock falls by $40 you lose $4000 on the stock but make $4600 on the options, giving you a $600 net gain.
    Oct 5 08:56 AM | Likes Like |Link to Comment
  • How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
    The results did not come about from a single trade, but many trades over several weeks. You can see most of them at http://bit.ly/T53DTE and all of them if you become a subscriber to the TerrysTips newsletter.
    Oct 4 08:46 AM | Likes Like |Link to Comment
  • An Easy Options Strategy For Apple Bulls To Protect Against A $50 Drop In The Stock Price [View article]
    I agree. Deep ITM calls are really a proxy for owning the stock. The same rules apply. You pay a little extra in premium for the luxury of tying up a lot more stock with the same amount of cash.
    Oct 4 08:11 AM | Likes Like |Link to Comment
  • An Easy Options Strategy For Apple Bulls To Protect Against A $50 Drop In The Stock Price [View article]
    It comes free at with the trading platform at thinkorswim at TD Ameritrade. They have the best options platform anywhere and it's worth opening an account there just to get access to it.

    Terry
    Oct 4 12:33 AM | Likes Like |Link to Comment
  • An Easy Options Strategy For Apple Bulls To Protect Against A $50 Drop In The Stock Price [View article]
    And thank you, for acknowledging my thoughts. When I discover what I think is a good idea, I like to share it with others.
    Oct 3 10:46 PM | Likes Like |Link to Comment
  • How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
    The article is not misleading. Yes, our portfolio started in April 2010 is up about a similar percentage, but that one started with $5000 and over time, $13,000 was withdrawn, so the starting investment was actually a negative number. The portfolio was worth $1712 on July 27, 2012 and increased to $10,490 on September 14, 2012. The numbers are all available in the Saturday Reports on the Insiders Page.
    Oct 1 09:24 AM | 1 Like Like |Link to Comment
  • 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.
    Sep 27 11:54 PM | Likes Like |Link to Comment
  • How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
    Please see my response below.
    Sep 26 09:35 PM | Likes Like |Link to Comment
  • How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
    That's me, John. I'll give you a call. Didn't you recognize my picture?
    Sep 26 09:34 PM | Likes Like |Link to Comment
  • 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.
    Sep 26 09:33 PM | Likes Like |Link to Comment
  • 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).
    Sep 26 09:30 PM | Likes Like |Link to Comment
  • 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.
    Sep 26 09:28 PM | Likes Like |Link to Comment
  • 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.

    Terry
    Sep 26 09:26 PM | 2 Likes Like |Link to Comment
  • 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.
    Sep 16 05:52 PM | Likes Like |Link to Comment
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