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Kevin M. O'Brien's  Instablog

Kevin M. O'Brien
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Options trader full-time, author, owner of, a subscription-based service. Born in Chicago. Follow many stocks in the tech, financial, and agricultural sectors. Trade daily with a 5 Technical Indicator Strategy I developed. Also trade debit spreads, strangles, and also hold... More
My company:
Kevin M. O'Brien
My book:
Breakthrough: A Consistent Daily Options Trading Strategy For Volatile Stocks
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  • A Story Worth Mentioning

    This is going o be an extremely long article...

    Around August 2011, I began to write some articles here on Seeking Alpha as a way to help options traders that were relatively new to them and uninformed.

    I always made it a point to conversate with my readers, especially when considering the strategy I developed on trading options daily and selling them as quickly as possible would have a learning curve.

    Of course, I do more than just trade daily. I know of many options strategies, from weekly trades to earnings trades. I could not even calculate the amount of e-mails and comments I always responded to.

    However, what I thought would happen certainly did. Around this time, and it has continued ever since, I started getting a ridiculous amount of comments and e-mails from one particular person, with a username of AK1004. This was not a reader who was asking a few questions or sending a few e-mails a day. I am talking at least 40 a day, at all hours of the day and night. Something did not sit right with me about it. This was not because he was asking questions. Quite the contrary. He was trying to promote an agenda that I spotted immediately, but I refrained from saying anything at that time.

    Initially, the comments and e-mails I was receiving were somewhat courteous, but that changed very soon. All AK 1004 wanted to talk about what his "strategy". Non-stop. Similar to what has been going on with this Napolean username, Pasion4DITM username, and about 20 others. I have those e-mails and a list of this person who gave me every username they have used (they kept getting booted off Seeking Alpha).

    Before I go any further, let me show you a few e-mails. Note: at this time, he was still Kim Klaiman:

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    This is interesting in the fact that Mr. Kim Klaiman was told repeatedly to stop writing any more comments on my articles by the editor of Seeking Alpha. Did he stop? He does not know how to.

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    So which is it Klaiman? Do I respond to comments or not? You are right, now, though. I have stopped writing to you and all of your friends.

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    This is where the story gets real interesting. It was at this time that Klaiman's agenda was set in motion. By the way, CWelsh is not just another user who commented.

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    So, Klaiman, Cwelsh is just some random person that commented. I don't know about that. This is from Klaiman's website, contributor "about" section.

    As I mentioned, Klaiman had a motive. The entire time, the reason behind his commenting 24/7, along with emails, was to get his foot in the door. That is understandable, too. He didn't know too much about stock options, the bare minimum, but what better way to get his name out there and promote himself than doing it through me?

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    I like this post to Klaiman, from me. Klaiman has always insisted that I never admit to any bad trades. This should throw that theory out the window. Thanks once again, Klaiman, for continually misquoting me.

    By the way, Klaiman. The JP Mprgan (NYSE:JPM) trade is doing that bad at all. I gave it an extra week till expiration, with Citigroup (NYSE:C) reporting Monday. Please, get your facts straight. The Google (NASDAQ:GOOG) trade you mentioned, I had around a 20% loss on that one. That's quite good in comparison to some of your trades, like a strangle on Decker's (NYSE:DECK).

    I'm sure Klaiman will have some sort of way to refute all of this. But the facts are the facts.

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    Again, another e-mail detailing a bad trade. Klaiman never mentions this to any of his readers.

    Right around this time, Klaiman began writing articles more frequently. Mostly on stocks he knew would get "Hits". See, with Klaiman, the number of people who went on his page or article meant more money. He didn't care too much about stocks that did not provide this. He basically told me so.

    (click to enlarge)Right, Klaiman. Is that why you wrote an article about Apple (NASDAQ:AAPL) every day of the week from here on out?

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    See, I knew by writing this to him would do what I thought it would. He would write about stocks that brought him hits.

    More troubling in all of this nonsense is that Klaiman would continually swipe my articles. He did this every single week. I would receive e-mails daily with people wondering if I was writing articles under a pseudonym, simply for th fact that they were almost identical. Only mine came first. Amazed that SA allowed this to happen. It was blatant copyright infringement, only nobody said a word.

    If anyone doubts this, simply look back to my articles and Klaiman's.

    In some ways, I fed it to him. He never forgot this, because if there was one person who could shred his credibility, it was me. S what did he do? He started to have different "users" try and discredit me. It was a route he had to take. Also Klaiman, remember when you told me that you only traded part-time, if that? Sure, dent this too. It is easy to get 5% profits at most when you are buying only one contract. Try and put some real money into the game, then talk. My grandmother could get that return these days, and she's been dead for 10 years.

    It is also amazing, especially in light of Klaiman's past comments and posts, that he cherry picks the trades that do well. Amazingly, those are the ones where more money/contracts went into.

    From Klaiman's website:

    Hmmm. I'm not Einstein, but something seems a bit fishy here.

    Klaiman, what about the SPDR GoldShares (NYSEARCA:GLD) questions, on how to place a Reverse Iron Condor? Have that, too. How in the world can you be selling a service when you had no idea how to place it from the start? If you are going to promote yourself as an expert on a strategy, here's an idea, know what you're talking about first.

    It is now time to go into Klaiman's theory on options trading. You see, I would never tell new option trades or even advanced ones to profit on a flawed method. A 5% ROI? Really. And that's supposed to be good? I am at a loss for words on it. Since Klaiman likes to misquote me, I think it is only fair to look into some of his wonderful trades, since he does this to me, and never mentions the great trades. Ever.

    From his website:


    03/14/1303/19/135 DaysLULU double calendar-15.0%10,682


    02/25/1302/28/133 DaysDECK strangle-8.8%10,075


    02/14/1302/19/135 DaysCF strangle-13.0%8,893


    02/05/1302/08/133 DaysANF strangle-65.6%9,315

    My personal favorite.


    01/22/1301/25/133 DaysSNDK straddle-19.7%9,146


    01/16/1301/22/136 DaysCREE straddle-15.5%9,221

    Have a great day. May have another one of these out next week, but making it a beach weekend.

    Apr 13 9:51 AM | Link | 32 Comments
  • A Johnson & Johnson Earnings Trade For Next Week

    Johnson & Johnson (NYSE:JNJ) is scheduled to report their quarterly earnings on Tuesday, April 16, 2013, before the market opens. The stock is currently trading at $82.57/share. The 52-week range is $61.71 - $82.96

    This is an ideal price to be trading at because the strike prices are in increments of $2.50. This is extremely non-volatile stock that does not move too much after reporting earnings.

    The trade I am placing is a Neutral Calendar Spread. I will be using the April 2013 expiration (sell) and May 2013 expiration (buy). Here is how the trade is placed:

    Entered Trade

    Sell -10 JNJ Apr13 82.5 Call
    Buy 10 JNJ May13 82.5 Call


    Cost/Proceeds $590.00
    Option Requirement $0.00
    Total Requirements $590.00
    Estimated Commission $30.00

    The NBBO bid/ask: 0.56 - 0.59. I would pay no more than 0.61 for this trade using a limit order. Here is a look at the profit/loss chart:

    (click to enlarge)

    I would not be too surprised if this trade profited ahead of their earnings release, but it is never a good idea to always count on that, ahem. Hint, hint.

    If you have any questions, please leave a comment or send me an e-mail.

    Disclosure: I am long JNJ.

    Additional disclosure: I have this trade already placed.

    Apr 12 11:40 AM | Link | 1 Comment
  • Website Is Officially Up And Running - WWW. KEVINMOBRIEN.COM

    Finally, the website is up and ready to go for subscriptions at

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    It's been a long time coming. The website has two pages, the mainpage (which includes a chat page, updated list of the daily options trading strategy stocks, and general info) and then the Trading Forum Page, which has weekly recommendations, such as earnings trades, weekly trades, long-term ideas, and a lot more. I am really having this as a way for traders to all have a place to share my ideas and their own, as well.

    There is also the ability to receive text message alerts on your mobile phone or via e-mail whenever I post a trade or when there is a comment to a topic of trades or discussion. It's a very nice feature, and easy to set-up with detailed instructions in the Forum.

    Here is a look at how the Forum is structured:

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    You can go to the mainpage at and read the FAQ about the website and a lot more information to see if this may suit what you are looking for in a subscription-based service. Payment options include PayPal, Google Checkout, Checkout, and Checkout.

    Once subscribed, you will be provided with a username and password within one business day.

    Let me know if you have any questions.

    Apr 10 10:33 AM | Link | 47 Comments
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