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Philstockworld.com is the fastest growing stock and option newsletter on the Web. "High Finance for Real People - Fun and Profits" is our motto and our Basic and Premium Chat Sessions offer readers a chance to speak to Phil live during the trading day as well as authors like Optrader,... More
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  • Our 12 Trade Ideas Made $1,850 Yesterday - On Track for $19,840!  0 comments
    Jun 15, 2011 2:52 AM | about stocks: AA, BAC, CSCO, DIS, GE, HD, HPQ, INTC, MMM, MSFT, VZ, WMT
    Yesterday, in our Morning Post, we gave you 12 free trade ideas.

    We do this from time to time just to let free readers know what kind of trade ideas we give our Members every day at Philstockworld.  A simple Report Membership gives you access to these picks before the market opens each day as well as occasional special Member Alerts from Phil.  Once a month or so, we will continue to give out free samples in the hopes that, if you profit from our selections, you may consider taking some of those profits and investing in a PSW Membersip.  

    A $695 Annual Report Membership is less than $2 per day - let's take a look at the results from yesterday's Dow trade ideas, which were published at 8:26 am as a suggestion to raise cash against a DIA put spread that quickly stopped out as the Dow rose over our 12,000 target while our bullish oil trade, the USO July $39 calls opened below our $1.10 target and finished the day at $1.40, up 27% in a single day!  Our Dow trade ideas were as follows :
    • 10 AA July $15 puts sold for $630, now $460 - up $170
    • 10 BAC 2013 $7.50 puts sold for $600, still $600 - even
    • 10 CSCO Jan $14 puts sold for  $920, now $870 - up $50
    • 10 DIS July $37 puts sold for $550, now $400 - up $150
    • 10 GE 2013 $15 puts sold for $1,400, now $1,290 - up $110
    • 10 HD Aug $32 puts sold for $820, now $450 - up $370
    • 10 HPQ Jan $31 puts sold for $1,600, now $1,520 - up $80
    • 10 INTC Jan 2013 $20 puts sold for $2,710, now $2,470 - up $240
    • 10 MMM July $87.50 puts sold for $710, now $490 - up $220
    • 10 MSFT 2013 $22.50 puts sold for $2,750, now $2,580 - up $170
    • 10 VZ 2013 $35 puts sold for $5,100, now $5,000 - up $100
    • 10 WMT Jan $50 puts sold for $2,050, now $1,860 - up $190

    Not all trades were available at the open, of course, these are trade ideas that we were able to take advantage of at much better prices in our Member Chat on Monday, when the Dow was 100 points lower and the prices above reflected Monday's close.  As a group, the 12 trades here made $1,850 in a single day, more than enough to cover the $2 daily cost of a Report Membership!

    Please see yesterday's post for a discussion of the overall strategy as well as margin requirements for each trade.  Keep in mind that the key in selling short puts is whether or not the trade is on track.  The potential gains from this series - if the Dow holds up and all the short puts expire worthless, is $19,840 but still, realizing 10% of those gains in a single day is very, very nice indeed...  

    Note some of these trade ideas are still playable as they weren't meant to be day trades.  However, when you make a very large profit in a single day, there's no reason not to take it off the table - we'll always find something to trade tomorrow with our cash!  

    Selling short puts is an excellent way to establish and entry on a new stock position as you are effectively giving yourself a discount on the purchase of the stocks and, if the stock never goes down to your offer price - you simply keep the cash.

    Meanwhile, any time you get ahead - like we did in one single day, you can just cash out and wait for your next good opportunity.  

    Philstockworld is an educational site that dedicates itself to teaching our Members how to be the house - not the gambler, to help stay ahead of the game in this casino of a stock market.  

    Selling short option positions in sensible companies where the only downside risk is owning a stock at a discount to the current price is one of our favorite tools for generating a steady income through stock option sales.  



    Themes: Options, Option Strategies, Hedging Stocks: AA, BAC, CSCO, DIS, GE, HD, HPQ, INTC, MMM, MSFT, VZ, WMT
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