2020 SPY STIMULUS–COMPOUNDER Commentary
The trades below are for educational purposes only.
They are not recommendations to purchase any particular stock or options contract.
Note: they are suggested entry and exit points! disclaimer
|
Stock Information Updated 12/26/20 |
|
WEEKLY IV%: 12.17 MM +/- 2.99 VIX: 21.53
Long Term Bullish
|
|
Trade BIAS:
STIMULUS TRADE BIAS: CALLS
HEDGE TRADE: PUTS
|
Risk Tolerance: VERY Aggressive 50% Compound Rate
Click HERE for full STIMULUS–COMPOUNDER spreadsheet results.
NOTE: when applying a compound rate, you need to consider your tolerance to initial draw down until you start to capture winning trades.
Once you have profits building, you can survive multiple losing weeks and still keep building your contract loads into the hundreds and then thousands!
Beginner = Flat bet 1 - 2 contracts each week until you have 5 consecutive winners...then you start to compound your contract size.
Conservative = +1 contract ONLY after each winning trade.
Moderate = +1 contract with each trade regardless of a fill or loss.
Aggressive = 25% of profits from the last winning trade.
Very Aggressive = 50% of profits from the last winning trade—the STIMULUS–COMPOUNDER Model Portfolio
Any compounding method you choose has the potential to get you to land of 6-Figure profitability in 1-2 years, so be patient and CONSISTENT each week and I will see you there!
2020 STIMULUS Trades / 2020 STIMULUS Charts / 2020 Main Navigation
|
=========================================================================================================================== FRIDAY – 12/18/20 12:41 PM - NEW Stimulus-Compounder trade ideas for 12/28/20 expiration! Greeting SC Traders! This will be the last SC trade for 2020, and what an amazing year we have had with this strategy!!$$!! Next year I am hopeful the markets continue similar trajectories and you can compound your accounts well into 6-Figures… maybe even 7-Figures by this time next year!!!!! Today, the markets took a pause; primarily due to uncertainties with the stimulus relief bill currently in Congress; and it is also triple witching expiration; as well as TSLA being added to the S&P 500 Index. If Congress finally approves the bill over the weekend, we are possibly going to see a HUGE rally or a “sell-the-news” event since the markets have steadily climbed higher into this event, but the BULLS are still in control. I am still going with CALLS indefinitely for the SC strategy until the charts and/or SGB’s give me a reason to switch to PUTS; however, I will be buying some wild card Lotto Trade PUTS and CALLS for next week. If you are starting with the SC strategy, you should probably sit this week out. Consider taking the next 10 days off to study the strategy and get ready for a great 2021!
Here are my Lotto Trades: Lotto Trades are 100% speculation and should only be done with PROFITS.
Wishing you and yours a very Merry Christmas and Happy New YEAR! Profits UP!
Frank thedonFranko
=============================================================================================================================================== FRIDAY – 12/18/20 10:25 AM - MORE UPDATES for STIMULUS-COMPOUNDER trades for 12/21/20 Expiration! - PROFIT STOPPED OUT. I was profit stopped out when the market pulled back after news hit that Congress has NOT made a final deal on the stimulus plans; however, the rumor is they are committed to getting it finalized by Monday. I will have the next trade ideas sent around 12:30 today.
==================================================================================================================================== THURSDAY – 12/17/20 6:41 AM - UPDATES for STIMULUS-COMPOUNDER trades for 12/21/20 Expiration!
Greetings Traders! My GTC order for the DoubleUP! was hit at the open!! I am holding onto the rest of my contracts into expiration with a profit STOP at 4.00.
========================================================================================================================= FRIDAY – 12/11/20 12:56 PM - NEW STIMULUS-COMPOUNDER trades for 12/21/20 Expiration! Greetings Traders!
Tough week of trading with continued volatility ha kept the current SC traded from profiting as the SPY tests the SGB zone.
I am going to go with my usual CALLS but this time, I am going to go with the closest strike to $3.00 MAX spend and will see how things progress in the final week of trading before the Christmas holiday week starts.
There is usually some decent upside the next couple of weeks, and if the SPY hold here, then we should see a test of the highs; however, if we get unexpected news, we could easily see a HUGE frop to the base of the daily chart SGB zone.
Since we are the SGB zone, I am also going to continue with my Lotto Trade PUTS for next week too.
=============================================================================================================================
FRIDAY – 12/4/20 12:32 PM - NEW Stimulus-Compounder trade ideas for 12/14/20 expiration!
Greetings SC Traders! We have another winning week for the Stimulus-Compounder strategy with a DoubleUP! profit in place. I took some of my profits earlier in the week to pay off the speculation PUTS, and I will be closing all but a couple more today and moving those funds into this weeks trade! With continued uncertainty with the elections, there is still the chance of a market wide upset, so I will continue with my speculations PUTS, but maintain my bullish bias on CALLS for the strategy. Now that the SPY has cleared all SGB zones, we just need to monitor the DAILY charts for the next ones to determine our aggression on CALLS and/or adding to Lotto Trade PUTS. As we approach the Christmas holidays, there tends to be a bullish bias on the markets; however, in the final week of 2020 trading, funds probably will start to balance the years massive gains and lock in profits etc.—which tends to slow down upward momentum. Since this is the first year I am trading the SC strategy into a closing year, I have nothing to base my level of aggression on; other than past years market performance, so I plan to just keep progressing with the compounding and let the chips fall where they may—hopefully with a BANG! Here was past performance for December on the $DJI and SPY to show you the end of year activity is generally unpredictable, so you just have to be ready for any type of action that presents itself by sticking to the strategy and having some PUTS in play just in case we get a similar situation like 2018.
2019 $DJI:
==================================================================================
2018
$DJI:
=========================================================================================
2017
$DJI:
=================================================================================== Here is the DAILY chart for the SPY which is decidedly BULLISH; however, if we do get that end of year slam, your PUT strikes should be at the last SGB zone around $365
For this weeks SC trade, I am going to LAYER contracts and a couple strike prices looking for a potential early week pull back and then surge. I am buying the 370/371 CALLS today and placing GTC orders for the 368/369 at the same prices I am buying in at today.
WORKING ORDERS
Here are my PUT trades for next week:
Have a great weekend!
============================================================================================================================= TUESDAY – 12/1/20 11:16 AM - UPDATES: NEW Stimulus-Compounder trade ideas for 12/7/20 expiration! Greetings Traders! Markets are back in action to the upside and the SPY trade is building profits!!! I am taking off 20 of my 50 contracts to pay off my PUTS that are not working out. I will continue to see how things progress the rest of the trading week on the remainder.
Now that the SPY has cleared the SGB zones, the skies the limit; however, any pullbacks into those SGB’s, then I am going to get aggressive on Lotto Trade PUTS. I will be keeping some wild card PUTS in place just in case there is an unexpected news/market event that can create a stampede of selling, but as usual, the markets NEVER want to come down.
============================================================================================================================= MONDAY – 11/30/20 11:11 AM - UPDATES for Stimulus-Compounder trade ideas for 11-30-20 expiration! -- WINNER!!!! I was profit stopped out on the remainder of my trades this morning making this last weeks SC trade a success!
So far, the markets are pulling back a little bit, and the current SC trade is also trading lower, so I plan to add to the position tomorrow. The journey continues and the magic happens when you compound so keep on traveling down the road with me to the land of 7-Figure profitability!!!
============================================================================================================================= FRIDAY – 11/27/20 8:50 AM - NEW STIMULUS-COMPOUNDER TRADE IDEAS FOR 12-07-20 Greetings Traders! Hope your Thanksgiving Holiday was a great one! The markets are closing early today so I am placing my SC strategy trades now. This time I was able to almost get ATM CALLS for the MAX spend of $3.00 and I am also adding a Bull Call Spread so I can get so more on but still trading half my normal size due to the giant SGB on the weekly chart not being taken out yet. Here are my trades with the 365 CALLS being the “core” strategy strike, but if you want to get in for a lower price you can do the spread.
Have a great rest of your holiday weekend!
===============================================================================================================================
WEDNESDAY – 11/25/20 12:52 PM - UPDATES STIMULUS-COMPOUNDER TRADE IDEAS FOR 11-30-20 Greetings Traders!
The DJI takes out 30,000 WOW but the SPY stops just short of taking out the SGB on the weekly chart…hmmm.
Momentum on the $DJI is still bullish and trading becomes a bit unpredictable at major tops so you just have to be in-it-to-win-it.
So, as I have noted in past emails, until the SPY can take out that SGB on the weekly chart, I will continue to buy PUTS up to 10 handles OTM as a wild card Lotto Trade. NOTE: If you are trading the SC strategy, and you have made PROFITS, then consider some Lotto Trades; however, do not bet the farm on these as they have NOT been working out well at this time. Here are my Lotto Trades trades for Fri, Mon and Tuesday expirations:
I am open ended on Friday and doing spreads for the other two expirations. Hope you and your family has a wonderful Thanksgiving Holiday!
============================================================================================================================
Here are my trades for next weeks SC strategy:
I bought some more Lotto Trade PUTS as a spread to get in for a lower price: 11-25-20 expiration
Have a great weekend!
FRIDAY – 11/20/20 11:57 PM - NEW STIMULUS-COMPOUNDER TRADE IDEAS FOR 11-30-20
Greetings SC Traders!
A lackluster week of trading in the markets has our latest SC trade heading to a bust ☹ That HUGE SGB from last week has put a damper on momentum, and with all the uncertainty in the elections, increasing COVID-19 infections et. al., there doesn't seem to be much motivation to move any higher—especially with Thanksgiving coming next week too. I am going to take what I can get on this weeks trade and roll that into the next one because it’s looking like we are going to need more time until the markets find their way back on the up-trail.
As for the Lotto Trade PUTS, those are also not performing, but when they do, all losses are erased and profits kick in, so I will keep on buying my PUTS 10-handles OTM until that huge SGB is taken out.
Until these SGB’s are taken out, I will continue to buy Lotto Trade PUTS. With the presidential elections in limbo, COVID-19 infections rates rising, and Holiday season starting up next week, I am thinking the markets will remain on this sideways trajectory until a news story changes the motivation of the BULLS or wakes up the BEARS. Therefore, I am going to lower my contract loads on the SC strategy until I begin to see some movement in the right direction.
Because the volatility is lower this week, we can get lower strike prices than usual; which won’t take much of a move in the SPY to get us back on the ProfitsUP! Trail.
I am going to wait until the end of trading to BUY the strike that is between $2.00 - $3.00 MAX and will be ready to add next week if we get a dip down to 350 that holds. Profits UP!
Frank thedonFranko
============================================================================================= WEDNESDAY – 11/18/20 12:46 PM - UPDATES: NEW LOTTO TRADE PUTS 11-20-20 EXPIRATION
Markets have not moved much all week, so my Lotto Trades PUTS are not working out at the moment.
I am heavily invested in the PUTS for the week, but I am going to continue to buy more into Friday’s expiration due to the SGB’s in play, and until they are taken out, I will keep buying PUTS and BEAR SPREADS. The SPY is capable of moving over 10 handles in two days, so I am trading the 350 strike for Friday 11-20-20; along with some SPREADS for Monday 11-23-20 expiration.
Trading Lotto Trades takes patience, capital and some luck, but when we do catch winners, they pay off ALL the ones that don’t work. REMEMBER: If you are trading the SC strategy, Lotto Trades are NOT part of that strategy and should ONLY be traded with PROFIT capital. ProfitsUP!
Frank
==================================================================================================================================== FRIDAY – 11/16/20 12:44 PM - I added some more Lotto Trade PUTS to average my positions.
NOTE: These trades are 100% speculation based on the SGB’s, so if you are trading the SC Strategy, these are NOT part of that trade and should ONLY be done with profits capital.
============================================================================================================================== FRIDAY – 11/16/20 10:49 AM - UPDATES: STIMULUS-COMPOUNDER TRADE IDEAS FOR 11-23-20 EXPIRATION I sold half my SC-CALLS to pay offset some of my losing Lotto Trade PUTS
I also added some more Lotto Trade PUTS for 11-18-20 expiration.
=================================================================================================================================
FRDAY – 11/13/20 12:41 PM - NEW: STIMULUS-COMPOUNDER TRADE IDEAS FOR 11-23-20 EXPIRATION Greetings Traders! WOW, what a crazy week we have had in the markets. Monday, news hits that PFE is developing a 90% positive vaccine for the COVID-19 virus and the markets exploded higher giving us a massive parabolic WIN on last weeks trade. The interesting thing to point out is that new all-time-high was sold down creating a very large SGB on the daily, and now we have one formed on the weekly charts too! We are permanent CALL bias with the SC strategy; however, I have been buying PUTS for a Lotto Trade hedge that have been working out a little bit, so I plan to keep doing this until the elections are finally decided. My plan on the CALLS is to buy in for half my contract load today and then place GTC fishing orders for the remainder at lower prices as well as layering lower strikes too. As for the PUTS, I will be buying multiple expirations for next week up to 20 handles OTM, because if we get some sort of upset in the elections and/or an uexpected negative turn of events with the pandemic, the SGB’s have proven to be excellent SHORT signals—the last SGB on the weekly charts created a massive two-week slam-down in the markets.
Here are the CALL strike ranges I am looking at and will buy into the 360’s today.
For the “core” strategy (and for beginners), the suggested STRIKE is the 360’s for a MAX SPEND of $3.00 or lower.
Here are my additional SC Strategy GTC orders:
Here are my Lotto Trade PUTS (these are NOT part of the SC strategy and should ONLY be bought with profits made)
11-20-20 Expirations PUT SPREADS
Wild Card Lotto Trade PUTS
With the PFE news and upcoming MRNA vaccine news, we could see yet another massive rally, so having some Wild Card Lotto Trade CALLS on at the 370 strike might become another Moby Dick trade next week.
Have a great weekend! Profits UP!
Frank thedonFranko =================================================================================================================================== WEDNESDAY – 11/11/20 3:32 PM - UPDATES: STIMULUS-COMPOUNDER TRADE IDEAS FOR 11-16-20 EXPIRATION Greetings Traders! After reviewing my trade logs today, I noticed I was stopped out of the remainder of my SC-Spread yesterday for a small gain, but the overall gain was still over 120%!!—this is why I am NOT a big fan of putting in stop losses unless I have already taken a DoubleUP! off the table; however, once I have locked in a guaranteed profit, I prefer to just let the remainder go until expiration or if I get that parabolic move I will cash out then.
If you are still in your trade, the current credit available on this spread is $2.65, so you can take yours off now or keep it on (if you are in freeroll status) since you still have 5 more days to expiration. BUT, when you are trading spreads, the upside is capped, so if you manage to get over 85% of the MAX profit early (like we did on Monday), then I plan to TAKE IT all off in the future and move onto the next trade—let the power of compounding take you to new profit heights. Next SC trade idea coming Friday! ================================================================================================================================ Greetings Traders, With this MASSIVE rally on the DJI / SPY, the BULL CALL SPREAD trade is already producing a huge profit, so I am taking 15 of my 20 contracts off the table today for more than a DoubleUP! credit!
MONDAY – 11/09/20 8:46 AM - MORE UPDATES: STIMULUS-COMPOUNDER TRADE IDEAS FOR 11-09-20 EXPIRATION Greetings Traders! I also closed out the rest of the 350’s too…WOW.
And if you held on to the 360’s, then those rocketed to massive MOBY DICK profits at the open today too!! Unfortunately, I bailed out on those Friday; which is a good lesson that you cannot predict how much of a move you can make, so keeping something on, will just add to your profits if you do. I am bummed out on this trade, but the others more than made up for it, and the compounding journey continues!!
============================================================================================================================ MONDAY – 11/09/20 8:37 AM - MORE UPDATES: STIMULUS-COMPOUNDER TRADE IDEAS FOR 11-09-20 EXPIRATION Greetings Traders!!! CHA-CHING!!!! The SPY exploded higher today giving us a Parabolic move on the 335 CALLS! I took off my final contract and hope you made similar results on this trade too.
Remember, we do not need to catch the TOP on every trade, we just need to keep making at least a DoubleUP! Profit and every once in a while we hook onto a Moby Dick like this one!!$$!!
================================================================================================================================ FRIDAY – 11/06/20 12:32 PM - STIMULUS-COMPOUNDER TRADE IDEAS FOR 11-16-20 EXPIRATION
Greetings Traders! What a week we have had with the BIGGEST ROI to date on the SC trades!$$! Now that the election results hang in the balance, there will be more uncertainty and that makes for continued volatility. I am going with some Wild Card PUTS and BEAR PUT SPREADS for next week just in case there is a major upset with the election results. For this weeks SC CALL trade, I will do a BULL CALL SPREAD so I can get a current ATM strike for less than the MAX spend. SC Spread Trade:
Hedge PUTS Spreads:
As the week starts, I will be looking to ADD to my positions when I see opportunities and will update you if I do more trades NOTE: I will be updating the Model Portfolio Tracker Spreadsheet over the weekend and it is going to be a mind blower!!$$$!!—this strategy WORK$$$$$$$$$; you just need to keep applying it; compounding your contract loads and enjoy the journey to the land of 7-Figure profitability Have a great weekend! Profits UP!
Frank thedonFranko
================================================================================================================================ FRIDAY – 11/06/20 6:52 AM - POST ELECTION TRADE UPDATES I took what I could get on the 360’s and holding on to the 350’s until Monday. I also sold off 2 of my final 3 on the 335’s and will hold the last one until Monday.
================================================================================================================================== THURSDAY – 11/05/20 9:56 AM - POST ELECTION TRADE UPDATES I was sold out of half my positions at the DoubleUP! and I am taking another half off on the 350’s today!
I will keep the remainder of the 360’s on and see if the massive rally continues into next week!
================================================================================================================================= THURSDAY – 11/05/20 9:37 AM - MORE UPDATES: STIMULUS-COMPOUNDER Trade Ideas for 11-9-20 Expiration! I am selling another half of the CALLS…WOW! And I moved the stop on the final 3 to $13.55 GTC I closed out the PUT spread for a nice credit too! Congrats if you took these trades! Also, the 11/6/20 trades are coming back to life, so I will see what I can get on tomorrows expiration:
The journey continues!!! Profits UP!
Frank thedonFranko
============================================================================================================= WEDNESDAY – 11/04/20 7:36 AM - UPDATES: STIMULUS-COMPOUNDER Trade Ideas for 11-9-20 Expiration! WOW…got a HUGE profit going on the 335 CALLS!!! I took half off and will let the rest ride with a $4.00 trailing profit stop GTC!!!!
If the markets hold current levels and/or advance higher, the 330/334 Debit Spread will also expire at a MAX PROFIT!
=====================================================================================================================
TUESDAY – 11/03/20 12:10 PM - NEW: POST Election Trade Ideas Greetings Traders!
Today is the Presidential election and no matter the outcome, we should see some BIG moves in the markets the rest of this week. Here is what happened to the SPY on the last elections, and as you can see, the reaction was a small drop and HUGE multi-day rally that never stopped.
This time, the stakes are much higher for Wall Street and stock market investing in general; as it is clear that a Trump win will be HUGE upside probability and a Biden win will most likely be muted upside at first and then a long-term slide lower in the coming year because he has clearly indicated he will raise taxes…especially capital gains taxes!= The daily chart has a very strong “M” pattern in place; however, the Squeeze indicator is not showing any “red dots” like we saw last time; which could produce a surprise move either way. The first downside target is the 200MA, so if you want to do PUTS today, then your target strike zone should be 315 – 310; which is also a previous SGB zone and you can cover that range with a spread to lower the cost to enter. Here are some Bear PUT Spreads you can consider: You can get up to a 13X return if the SPY gets slammed by Friday 11/6/20!
And up to 7x return for 11/11/20 expiration!
And up to 5x return for 11/20/20 expiration!
We already have LONG plays in place with the SC strategy, but I also want some Lotto Trades on the CALL side, so I am going with some 350 CALLS, and for the wild card play, the 360’s. There is a lot of volume today at these strike indicating a postive outcome this week:
Here are my fills:
If you are starting out with the Stimulus-Compounder strategy, then stick to the strategy, because once all this volatility ends, the road to the land of 6 and 7 Figure profitability will come our way in 2021! Profits UP!
Frank thedonFranko =================================================================================================================== FRIDAY – 10/30/20 11:34 AM - NEW: STIMULUS-COMPOUNDER Trade Ideas for 11-9-20 Expiration!
Greetings Traders!! Next week is the much anticipated Presidential elections, and there will no doubt be some explosive trading opportunites in the coming weeks. Will the markets implode or explode post elections? There is no way to know that; therefore, you either sit this week out or be in-it-to-win-it. This last SC weeks trade is not going to work out; however, we still have until 11-6-20 for the surprise move higher, and besides, the hedge PUTS covered the cost, so it was actually a “FREE” trade—and if you still have some on into today’s expiration, then you made a VERY nice additional PROFIT! The IV is pumped up making (even 10 handles OTM) PUT and CALL options priced higher than the strategies MAX spend of $3.00 on strikes no higher than 5 handles OTM. The way to get around that is by buying a Debit Spread; however, your upside will be capped off, but that is still going to be at least a DoubleUP! if the trade goes our way. My plan here is to buy a few 334 or 335’s at a MAX spend of $4.00, so I have some unlimited profit potential if we explode higher. Then I will buy a Bull Debit Spread on the remainder of my contract loads at the 5 handle strike range, and since I can get in for less than my MAX spend of $3.00, I can actually buy MORE contracts too!
Here are my trades: Next, I want some PUTS for next week just in case the markets get decimated post election. I bought some BEAR PUT SPREADS for next Friday 11/9/20 expiration. NOTE: If you are just starting out with the SC strategy, I would suggest you sit this coming week out; there will be plenty of opportunities once the outcome of the elections are known.
Have a great weekend!
Profits UP!
================================================================================================================================= THURSDAY – 10/29/20 11:22 AM - NEW UPDATES: STIMULUS-COMPOUNDER Trade Ideas for 11-2-20 thru 11-6-20 Expiration! Greetings Traders! I was profit stopped out on my final PUT trade.
Here are all my trades for this weeks SC strategy:
Total Spent: CALLS = $1,180 PUTS HEDGE = $1,001 Profits = $3,865 Net = $1,684 I now have a FREE trade on the CALLS and will look at starting the next SC trade tomorrow.
Profits UP! ======================================================================================================================== WEDNESDAY – 10/28/20 11:55 AM - NEW UPDATES: STIMULUS-COMPOUNDER Trade Ideas for 11-2-20 thru 11-6-20 Expiration! Greetings Traders! WOW, the markets got whacked again today taking the PUTS to better than 7x returns if you still have some on…Congratulations!! I had a standing order to sell 4 more at $4.55 and was executed at a higher price $4.94 at the open! I am keeping 1 last contract on (with a profit stop at $4.00) until expiration on Friday and see what else I can get.
I will be looking to add some more CALLS up to 10 handles OTM as well as some additional PUTS for next week too. As you can see from today’s action, the SPY is capable of 10+ handle moves:
The Daily SPY chart has a ton of interesting things going on; indicating the potential for a lot more downside if Wall Street does not like the outcome of the elections next week. However, when there is panic on the streets, that is when you start looking to BUY, so keep your fishing orders in play; using the SGB zones as your target strikes.
As for some more PUTS, the target strike zones are 310 – 314; however, those options are now very expensive with all the downside action today pumping up the IV, so the way to get in on the potential action for a lot less is by buying a DEBIT spreads.
Here are a couple of examples:
11-6-20 EXPIRATION
11-12-20 EXPIRATION
Here are my new PUT TRADES today and I will be looking for some more on Friday if we get a rebound in the markets. You can also do this on the CALL side when trading the strategy; which allows you to get in on the action cheaper; however, your upside profit potential is capped by the higher strike price cutting into your MAX profits—that is why I like to have a couple regular CALLS and/or PUTS (when I trade spreads) in play, just in case things go parabolic…like what happened today with the PUT trade. NOTE: As you progress with the strategy, and your contract loads grow, you can begin to diversify your trades with multiple strategies like these and increase your profit potentials! Here is my new CALL 11-6-20 EXPIRATION trade: Profits UP!
=========================================================================================================================== MONDAY – 10/23/20 12:56 PM - UPDATES: STIMULUS-COMPOUNDER Trade Ideas for 11-2-20 thru 11-6-20 Expiration! I sold half my PUTS and that has now paid off ALL my CALLS. I will be looking at the next trade strikes I want to buy in the next couple of days .
===================================================================================================================== FRIDAY – 10/23/20 11:54 AM - STIMULUS-COMPOUNDER Trade Ideas for 11-2-20 thru 11-6-20 Expiration! Greetings Traders!
Markets are showing no momentum after last nights final Presidential debate, and today the SPY has put in a SGB on the daily chart; hovering right at the base of the weekly SGB zone. I am anticipating the markets will continue to slip lower next week unless there is a stimulus deal (which is not looking like it will happen) announced. As I noted below in yesterdays email, I am going with 11-6-20 expiration so we can potentially catch a post election reaction. The option prices have already come down from yesterday so we can get started at discount; however, I am only buying into a couple contracts today and will be fishing for lower prices and/or strikes next week.
Here are today’s trades:
As for some Lotto Trade PUTS, I am going with a few 10-30-20 expiration 335’s for now and will be adding some more later next week.
Have a great weekend! Profits UP! ============================================================================================================================ THURSDAY – 10/22/20 12:50 PM -
STIMULUS-COMPOUNDER Trade Ideas for 11-2-20 thru 11-6-20 Expiration! Greetings Traders!
This last weeks SC trade turned into a DUD on Monday, but then started to gain back ground when news hit that Pelosi was “close” to making a stimulus deal; however, that has quickly faded the rest of this week as investors are backing off as each day lingers and no finality to the negotiations have been announced. There is definitely a deal coming, so markets will keep a bid under them until that happens; which means we remain on the CALL side with Lotto Trade PUTS (up to 10 handles lower) for the hedge.
Without a “deal” announced tomorrow, it is unlikely this weeks SC trade will recover…sad to say ☹ but anything can happen by expiation.
The weekly chart shows an SGB from last week, so until that is taken out, the potential for a BIG move DOWN is definitely possible, so any PUT strikes you buy should be at the DAILY chart SGB zones—always fish for better prices too since IV is really pumped up.
This weeks NEW SC trade will expire the day before the November Presidential elections; and there will most likely a lot of volatility next week as investors pick their sides and prepare for the inevitable explosive moves post elections; therefore, I am going to push the expiration date PAST the elections, so we have the potential to catch any massive moves—I expect a rally no matter who wins.
The SC formula for strike price range with this strategy is no more than 5 handles away, and no higher than $3.00 MAX spend; however, if we do get that massive post-election pop, the SPY is capable of making a 10+ handle move, so I plan to layer a couple of strikes for the next trade and go with 11-6-20 expiration this time—the MMM is currently projecting a +/- move of 16.43 handles; which puts the SPY at 360 by 11-6-20 expiration.
Since I am in compound mode, I am willing to pay up to a $4.00 MAX spend for the extra time; however, I want to LAYER the strike prices up to the 355’s; adding in a couple of wild card Lotto Trades at the 360 strike price.
My plan is to buy into a few of these strikes tomorrow; then place GTC limit orders for the remainder of my contract loads 50% lower than what I pay tomorrow.
NOTE: If you are not compounding yet, then stick to the basic strategy as taught and be patient; letting the proven process grow your contract load so you can layer in the future and continune your journey!
Earnings season has begun and this week we had some big names (TSLA, CMG, NFLX) report mixed numbers; however, the markets reaction has been muted. The one surprise this week was SNAP, which has exploded higher with massive volume, upgrades and a lot of potential to continue higher; making this stock a good candidate for the Lotto Trade strategy week-to-week going forward. As for the upcoming earnings releases, you will need to decide how you want to play them; however, since the VIX is still trading over 20, that makes it very hard to get Lotto Trades on at the $0.20 price level pre-earnings even at 15% OTM. If you want to do them pre-earnings releases, then you will need to pay a lot higher price; which kind of defeats the premise of being a Lotto Trade…know what I mean? That being said, I am more inclined to try and catch a Moby Dick post earnings; looking for that POP-n-DROP or SLAM-n-JAM trade opportunites. Be sure to review the Lotto Trade and White Whale training to help you know how to place your orders, and if I see a really good opportunties, I will send out notifications as we progress through earnings. I will notify you what my next SC trades are tomorrow. Profits UP!
========================================================================================================== FRIDAY – 10/16/20 12:38 PM - Greetings Traders! Here are the strikes I bought into today:
Here is the one I am Fishing for into next week:
This week the SPY took off on Monday giving us more than a DoubleUP! profit and then trailed off the rest of the week. Today, we got a nice POP that has faded all day and now the SPY is finishing the day as a DOJI indicating a change is immanent. The coming stimulus looks like it will be DOA until post elections, but we know that there WILL be a stimulus; and that will keep a bid under the markets. The big question is which candidate will win and how much of a rally will we see. I am still trading the strategy every week for the rest of the year and the BIAS will remain CALLS with Lotto Trade PUTS as a hedge. What I plan to do this week is buy a few CALLS but fish for lower strikes because we have done nothing but sell off all week and today’s DOJI is giving me pause to be fully invested. Another thing to point out is the SPY is currently in a triggered 13-Bar Bear 180 so if there is a sudden slam down again next week, then you want to target PUT strikes at the SGB zones which happen to be at T3.
Here is this weeks 348 CALL option chart:
As for Lotto Trade PUTS, I am going to layer some strikes and expiration dates:
Have a great weekend! Profits UP!
================================================================================================================================== WEDNESDAY – 10/9/20 12:45 PM - Greetings Traders! I was profit stopped out yesterday on the rest of my contracts, so I will be looking to start up a new trade on Friday. If you are still in your trade, and you took the DoubleUP!, then you still have a free roll on the remainder, so you either take the ride into expiration, or you can close the trade today at a break even on the remainder and move that money into the next one—either way, you win, so let the compounding work the $$$$ Magic $$$$ on the next trade(s) as you continue the journey!
Profits UP!
================================================================================================================================================ FRIDAY – 10/9/20 12:05 PM -
Greetings Traders!
Here are the Stimulus-Compounder CALL strikes I am looking at for the next trade:
MAX SPEND $3.00 or lower NOTE: I am buying HALF my contract load today and will fish for a lower price and/or lower strike next week after I see how the markets react to this weeks recovery rally.
Well, it is looking like last weeks trade will be another (unfortunate) loser as the markets just continue to grind higher and HIGHER…there is NOTHING that will bring them down, and ANY dips remain a forever buy with FOMO investors.
The SPY has completely retraced the SGB zone sell off; and now the BIAS has shifted back to CALLS with wild card Lotto Trade PUTS.
I am nervous about buying anything with the elections so close, but since we are working with a strategy, and there is always some losses with the wins, we just keep on making our way down the road hitting a few bumps along the way.
If you have been trading the strategy since we started in May, then you should have a ton of profits built up to absorb some occasional losing weeks as you continue your (12-24 month) journey to the land of 7-Figure profitability!
On the other hand, if you are just starting out, then I understand it can be frustrating to have back-to-back losing weeks, but rest assured, the trend is our friend with this strategy, and when we get those multiple winning weeks, the compounding wipes out ALL losing weeks in no time!
The daily chart is indicating the BULLS are in complete control again (primarily because the FED has the QE buy programs saving them) and they will most likely stay in control until the elections are over. If Trump wins, there will most likely be a MASSIVE rally; and if Biden wins, then it looks like the markets may still rally (initially) even though he has said he would raise taxes on the wealthy—Democrats have long wanted to put a transaction tax on trading; something that would be considered very hostile to Wall Street. Why would the markets continue to rally no matter who wins? Because the battle over the pending stimulus cash infusion to the economy rages on; and when Trump announced the other day he was ending negotiations until the elections are over; the markets were initially slammed down and then roared right back; because Trump tweeted a day later that he would immediately sign any bill that ONLY has a ($1,200) stimuls relief vs. the alternative inflated add-ons the Democrats are demanding in the current negotiations—Trump is becoming the stick to the carrot and the markets want that stimulus because investors know that whichever side wins, there will be STIMULU$$$ coming; which is VERY BULLISH for the markets in the short-term. After the President announced he contracted COVID-19, the markets were slammed down to that SGB zone I pointed out over the past couple of weeks; and when he quickly emerged from a hospital stay; the markets roared right back taking out those SGB zones and now trading above them…WOW. If you were fishing for Lotto CALLS as I suggested, then you have certainly made some nice profits; however, if you just starting out, then stick to the “core” strategy in the beginning; and once you start compounding with profits; then you can diversify into layering, Lotto Trades and other directional trade strategies.
Trading around SGB zones is always volatile, and with the elections coming in 25-short days, I expect a lot more volatilty to continue. Now that we are back over the SGB zone that started the selling, I am going with CALLS on the strategy and wild card Lotto Trade PUTS. When trading the strategy, you buy no more than 5 strikes OTM and a MAX SPEND of $3.00 per contract on Fridays; then lower your MAX spend and/or strike the next couple of trading days. As for Lotto Trade PUTS, you can go up to 10 handles OTM, however; I would not spend any more than $0.50; and you may want to have all the weekly expiration days in play on the SPY heading into the elections. NOTE: I would only buy a few of my contract load at the current ASK for each expiration cycle; and ALWAYS fish for a lower price BELOW the current BID; because IV has pumped up the option premium and you should be able to get in cheaper day-to-day as price moves around—I will be fishing price 30-50% below the current BID on the strikes I choose when I place my GTC orders. Here are the Stimulus-Compounder CALL strikes I am looking at for the next trade:
MAX SPEND $3.00 or lower NOTE: I am buying HALF my contract load today and will fish for a lower price and/or lower strike next week after I see how the markets react to this weeks recovery rally. Here are the Lotto Trade PUTS for next weeks expirations that I am looking to buy in at for a MAX spend of $0.50 or lower.
MAX spend of $0.75 or lower today and then $0.50 or lower early next week.
Profits UP!
================================================================================================================================= FRIDAY – 10/2/20 12:50 PM - Greetings Compounder Traders! Here is my next STIMULUS-COMPOUNDER trade idea: I bought the Oct 12 330 PUTS This last weeks trade is looking like it will not be working out as the markets rallied all week ahead of the presidential debate. Post debacle of a debate, the markets initially reacted negatively, but managed an impressive comeback; however, yesterday was another SGB; which gives us some opportunity for more downside and then the news of the President and his wife unfortunately being diagnosed with COVID-19 created a slam-down today that was still not enough to bring the current trade back to life—with all this uncertainty and chaos, we may get some more downside pressure Monday and maybe get a break even on the trade.
Even thought the markets keeep rallying, the initial SGB at 340 has not been taken out, so my bias remains PUTS with Lotto Trade CALLS. The Congress also passed a new stimulus package yesterday; however, it appears the Senate will not approve that one; which could create a lot more downside pressure in the next couple of weeks; however, if they do make a deal, then we should see a substantial bounce higher; and depending on how quickly the President and his wife quickly recover; the upside and/or downside volatility will make trading very interesting. I am going to keep fishing for wild card Lotto Trade CALLS up to 10 strikes OTM. Profits UP!
================================================================================================================================== FRIDAY – 9/25/20 12:13 PM -
Greeting Traders! For this weeks trades, I am going to layer multiple stikes and expirations; however, I still have the “main” SC trade (10/5/20 expiration) in play as we continue the strategy. Here are my current orders (the Green arrow is the SC strategy trade) and I will be buying in by the close if not filled.
This week started out with a bank as the SPY was in drop mode giving us a quick DoubleUP! on the last trade. I had a profit stop in place on the rest and was filled on 9/21/20 at $4.17 per contract.
If you are still in last weeks SC trade, then since you got the DoubleUP! giving you a free roll on the remainder, you might as wall wait until Monday expiration to see how they end up, or you can sell it today and apply the remaining capital to the next trade. Now that that markets have had a healthy pull back, the bargain hunters and buy-the-dippers appear to be taking on long positions; however, the volume is much lower indicating NO CONVICTION from the BIG money players. Looking over the daily chart, we can see the SGB zones were right on target as the SPY clearly bounced on them today at “T3” and the 89 MA. If things continue to get ugly into next week, and markets get slammed again, the next target drop is the 200MA and/or the SGB zone just above it.
Since the SPY is still trading under the COVID-CRASH SGB zone on the daily chart, the bias remains PUTS with wild card Lotto Trade CALLS until the SPY trades above (and holds) 337 prices. There is the possibility of a new stimulus bill in the coming week(s), and that will most likely have a positive effect on the markets like it did last time, so fishing for wild card Lotto Trades on strikes between 335 - 340 are where I plan to be looking to buy for Wed-Fri expiration. NOTE: the dashed-green lines are the COVID-CRASH SGB zone. Also, next week is the quarterly expiration cycle as well as the end of month trading—which usually means some volatility as the BIG funds balance portfolios et. al. Have a great weekend! Profits UP!
======================================================================================================================================= MONDAY – 9/21/20 7:27 AM -
Greetings Traders! Wow, we already got a DoubleUP! today, so I closed half my position:
We have all week to see where this can go, but be aware that the SPY is approaching the SGB zone at 320 and could get a bounce from there. If we do get that drop down, I will be fishing for some CALLS up the 325 Strike price. Profits UP! =========================================================================================================================== FRIDAY – 9/18/20 12:30 PM -
Greetings Compounder Traders! As I predicted, the markets sold off post Fed Chair comments and once again, confirmed the POWER of the SGB short signal! If you held onto the last Lotto Trade PUT play then you have been rewarded very nicely and should have been taking profits earlier or be looking to take proifts now…congratulations! With the markets in “sell” mode, and the elections getting closer, there will no doubt be more and more uncertainty; which the markets NEVER like and it tends to keep selling pressure on. We have had a very nice run to the upside and with SGB’s in play, my bias turns to PUTS with hedge CALLS.
As I mentioned in the past couple of emails, we want to keep PUT strikes at or just above SGB zones to give us the best odds of being ITM so I would be looking at getting the 325-326’s for 9/28/20 at a MAX spend of $3.00 or less; and if you want a wild card Lotto Trade, then no furuther out than 320’s for next week.
STIMULUS-COMPOUNDER TRADE IDEAS:
I bought 326 9-28-20 Exp PUTS:
If you have started compounding, then you want to consider “layering” your strikes and entry prices to get the most value out of the trades; because the IV is pumped up and you can should try to get better prices as things move around.
I am layering the 325 9-28-20 PUTS:
I will be adding a few Lotto Trade CALLS (335 – 340 strikes) for Wednesday expiration 8-25-20 as a hedge. NOTE: these are 100% optional trades and NOT part of the Stimulus-Compounder strategy.
If you are just starting out, then stick to the main trades for the strategy, and when you are compounding, then you can get more creative with layering and hedging etc.
Have a great weekend! ================================================================================================================================
TEUSDAY – 9/15/20 12:16 PM -
Greetings Traders! I just bought a couple of PUTS as a Lotto Trade speculation because today’s DAILY chart is showing up as another SGB
Profits UP!
=========================================================================================================================
THURSDAY – 9/10/20 12:46 PM - Greetings Traders! Well, it had to happen eventually, especially after an 11 week winning streak. The SPY has been wiped out this week and last weeks SC trade will definitely expire worthless…sad to say. For this weeks trade, I am NOT buying into anything today as the markets sell off into the close from the failed stimulus package in Congress. There is most likely some more selling pressure headed our way with the elections getting closer, so I am going to buy some PUT strikes just above the last SGB zone for a Lotto Trade. One thing to note when buying PUTS is the Federal Reserve has a massive QE in play, so there is a very strong BID under the markets; which will most likely keep them from completely imploding; therefore, you cannot get too aggressive on PUTS. My plan is to see how the markets start off next week and I want to FISH for the 325 CALL strike with orders at $2.00 and LOWER.
If things get really UGLY, the SPY could get slammed down to the 200MA. Here are my PUT trades for next week; which are optional plays outside the strategy trades.
As for the SC trade ideas, I am FISHING for the 9/21/20 – 325 CALLS at a MAX spend of $2.00
If the markets hold ground at current levels next week, then I will consider buying in and will update you.
Profits UP!
====================================================================================================================================
FRIDAY – 9/4/20 12:26 PM -
Greetings Traders! What a roller coaster ride this week with that HUGE drop in the markets yesterday and now the drop-n-pop day today. Depending on what strikes you bought last time, you should have been able to get MORE than a DoubleUP! on any of them and have a free roll on the rest; however, it is looking now like the rest will expire on Tuesday unless the SPY gets a HUGE rally post holiday.
For this weeks trade ideas, we have a lot of volatility pumped in to all the strikes, so I am going to buy up to half my contract loads and layer up to 5 strikes OTM (345 – 350) today; and will place fishing orders in for Tuesday at lower entry prices etc. I am going to buy a few contracts today and FISH the lower strikes for the MAX spend of $3.00 for next week.
If I get filled on the lower strikes next week, I will look to add more to the current filled strikes at a lower price…I will update you when I do. Have a nice Holiday Weekend!
Profits UP!
=============================================================================================================================
WEDNESDAY – 9/2/20 11:49 AM - Greetings Traders!! We have another DoubleUP! trade going $$$$$$$ If you are compounding you should consider taking half off and letting the rest ride…. I added some layered strikes and closed the 352’s for a DoubleUP! plus 1 of my 350’s; leaving me with a free roll on the remainder that I am holding into Friday and will take some off the table then.
===================================================================================================================
FRIDAY – 8/28/20 11:28 AM -
Greetings Stimulus-Compounder Traders! I am PUMPED UP on how well this strategy has been performing; and looking forward to the Model Portfolio reaching 7-Figures in the next few months!!!
I hope you have been taking the ride and building your trading accounts!
With the Fed Chair comments and both political conventions over, the markets appear to just want to keep on moving HIGHER!
Monday is the last trading day of the month and with AAPL and TSLA trading post split, I am expecting some volatility; which will have some impact on the SPY and the DJIA next week. AAPL is the largest weighted stock on the DJIA, and once it splits, its position will drop down to around 17th creating some portfolio rebalancing. To offset that, the powers that be removed some symbols from the DJIA (XOM, PFE, RTX) and added a few new ones (CRM, AMGN, HON) to “balance” the scales—we will have to see what the final impact will be once this happens.
Here is some info to better understand what is about to happen:
https://www.fool.com/investing/2020/08/14/how-apples-stock-split-will-affect-the-dow-jones-i/
The trend continues to be CALLS, so we just keep on moving down the road to the land of 7-Figure profitability; however, I plan to hold back on some of my contract loads until I see how the SPY reacts to next weeks post split trading with AAPL etc.
Here are the current STRIKE prices for this weeks trades—we can actually get filled ATM for the $3.00 MAX spend.
Here are my trades for today:
I bought a few 350, 352 and 354’s, and will hold off on my full lot until next week.
NOTE: When you are compounding, you (should) divide up your total spend into multiple option strikes so you can actually get MORE contracts on and benefit when the SPY moves like just did this past week.
I am still putting on a few PUTS just in case markets take a way overdue break as we start September trading next week.
Have a great weekend!
Profits UP!
=================================================================================================== FRIDAY – 8/28/20 10:45 AM -
UPDATES: Greetings Stimulus-Compounder Traders!! Another MEGA winning trade this week…congratulations!!! I am keeping 1 last contract on until Monday expiration and starting the next trade.
============================================================================================================================ TUESDAY – 8/25/20 12:27 PM -
Greetings Compounder Traders! I took half off at the DoubleUP! today!!$$!!
Fed Chair Powell speaks on Thursday and could have some impact on the markets along with Friday / Monday being the last trading days of the markets.
============================================================================================================================== FRIDAY – 8/21/20 11:47 AM -
Greetings Compounder Traders!
This last weeks 337 CALL trade is struggling to hold onto a break even; and did not make the usual DoubleUP! profits we have had for the past several trades; however, the markets have made record highs and the SPY eclipsed the entire COVID-19 crash; but did NOT close above it…hmmm…has the SPY topped out?
With the upcoming splits on AAPL and TSLA next Friday, there should be some continued upside momentum next week, so I am still going with CALLS on the strategy; however, I want to have some wild card PUTS (up to 10 strikes OTM) in place too; just in case my suspicions are correct and we get a sudden drop heading into the end of the month trading.
NOTE: PUTS are a “separate” trade applied as a “hedge” to the strategy and are optional trades placed from profits gained.
I am going to sell off all but 1 of this last weeks trade and move those funds into next weeks trades.
Taking a closer look at the trading action in the SPY this week, you can see that as it approached that COVID-19 crash line, there were three slam-down “V” bottoms—two of them happening is after hours trading indicating there is some definite BIG money trading (manipulations) going on here. I am going to continue to make the trend-my-friend with the strategy; however, I want to get some wild card Lotto Trade PUTS on strikes up to 10 handles OTM for Mon-Wed expirations next week.
Also, another thing to point out is the CALL options for 8/31/20 expiration are “cheap” indicating there is little IV pumped in (Bearish potential) and we are practically geting ATM strike prices at the $3.00 MAX spend; therefore, I am going to “layer” my strikes this week. NOTE: If you are compounding, then you can begin to “layer” strike prices by dividing up your “total spend” into multiple strikes no more than 5 handles OTM. That way, you can get even larger contract loads in place to potentially maximize any parabolic moves the SPY might make next week if the momentum breaks above the COVID-19 crash line and we continue higher; however, if you are just beginning, then stick to the closest strike that is at the suggested $3.00 MAX spend.
Here are my current trades…I am closing ALL the 337’s at the end of the day and holding the 336’s until Monday expiration.
Here are my filled trades for next week:
Profits UP! ============================================================================================================ MONDAY – 8/17/20 12:17 PM -
FRIDAY – 8/14/20 12:30 PM -
CORRECTION – CORRECTION I meant to say I am buying the WEDNESDAY AUG 19 EXPIRATION PUTS…sorry for the mistake <8-)
Greetings Compounder Traders! This last weeks trade has not been a stellar performance compared to the past several weeks of 100% or higher winners; which is giving me some concern that the momentum is fading and the markets may be weakening—there is always the potential the next trade will result in a 100% loss and we are definitely due for one. This week the Senate said we are in a “stalemate” over the next COVID-19 stimulus and that is creating an enviroment of uncertainlty heading into next week. Since we are due for a potential losing week, I am going to buy HALF my contract loads today and layer lower strikes for next week.
Should the markets get slammed, the SGB zones are the best place to pick PUT strike prices; therefore, I am going to buy some Wednesday AUG 24 330 - 325 strikes as my hedge plays which are a “hedge” play. If you are in compound mode, then you can use some of your profits to buy hedges, layer strikes and adjust contract sizing; however, if you are just starting out then make the trend-your-friend and continue the formula as it has proven to be very effective to date.
Since this weeks trade did NOT hit the DoubleUP! I am closing all but 1 contract today and using that money to buy into the next trade.
============================================================================================================================
THURSDAY – 8/13/20 10:41 AM -
=============================================================================================================================== FRIDAY – 8/7/20 12:30 PM - Greetings Compounder Traders! Looking over the option strikes for the next trade idea, I was able to get filled on the AUG 17 334 CALLS for the max spend of $3.00 so I bought half my contract loads and will fish for more on Monday! The momentum on the CALL side keeps on going, so we continue to make the trend-our-friend and compound our way to the land of 6-Figure profitability!!$$!! The SPY is within striking distance of taking back ALL the Covid–Crash losses; and there will no doubt be some resistance at the 340 level if the SPY can make the final push higher next week.
Have a great weekend!! =============================================================================================================================== FRIDAY – 8/7/20 12:11 PM -
Greetings Traders! We have another HUGE WINNING trade this week…CONGRATULATIONS! I was profit stopped out today on the remaining contracts at $8.56!!$$!!
======================================================================================================== I took half my position off at the DoubleUP! and now I have a free roll on the remainder for the rest of the week! I have a hard profit stop in at $3.50, and if the rest trade above $6.00, then I will move that stop up to a $1.00 TRAILING STOP.
ProfitsUP!
=========================================================================================== TUESDAY – 8/4/20 10:13 AM -
Greetings Traders! I took half my position off at the DoubleUP! and now I have a freeroll on the remainder for the rest of the week! I have a hard profit stop in at $3.50, and if the rest trade above $6.00, then I will move that stop up to a $1.00 TRAILING STOP. ProfitsUP!
========================================================================================================================== FRIDAY – 7/31/20 11:38 AM -
Sold this weeks 323 CALLS trade for a small gain.
Greetings Traders! The BIAS is still CALLS so this weeks trade will be the Aug 10 325 CALLS for $3.00 or better
It has been a very volatile week of trading with strong earnings from AAPL, FB, AMZN etc. drove markets higher. The current Compounder trade (Aug 3 323 C) was getting close to the DoubleUP! and now the trade is on the ropes; however, we continue the journey to the land of 7-Figure profitability! Have a great weekend!
=============================================================================================================================== FRIDAY – 7/24/20 12:59 PM - Greetings Traders! For this weeks trade, I am cutting my contract load in half and buying the 323 Aug 3 expiration CALLS:
And also picking up some JUL 29 320 Lotto Trade PUTS:
NOTE: Lotto Trades are NOT part of the STIMULUS trades and optional. YOU STILL HAVE UNTIL 1:15 PM PST to place trades on the SPY This last weeks STIMULUS–COMPOUNDER trade strikes all hit their DoubleUP! and if you took half of your contract loads off, then you will make a break even if we do not get a rebound on Monday from this weeks sell off due to the China tensions news. I had my orders in place, but somehow the model portfolio was NOT filled ??? even though the charts below clearly show all my strikes did trade at a DoubleUP!...arrgghhh!
Looking at the current Daily chart, we can see there was an SGB that was put in on Tuesday; and now the SPY is trading down into the previous ones today; however, we still have until Monday for the SPY to snap out of this current sell-off or the trades will probably expire worthless if you did not take your DoubleUP! profits. We have had an amazing run for the past few weeks, so it’s expected to have a losing week now and then….but it still stucks when losing week happen; however, you can always take your profits sooner than a DoubleUP! if you do not have as much of a tolerance level for losing weeks as I do—I am on the aggressive compounding path and willing to roll with the punches. The bias is still CALLS with Lotto Trade PUTS; and with AAPL, FB and AMZN earnings next week; there should bet some more volatility to deal with.
ProfitsUP! ============================================================================================================= FRIDAY – 7/17/20 12:47 PM - Greetings Traders! We had another good week of compounder trading with the 219 CALLS hitting the DoubleUP! and still holding ground above the entry price. I took off half my position early in the week and will hold the rest into Monday’s expiation to see if I can catch another parabolic move.
For this coming weeks trade the bias is still CALLS; however, caution is looming with that SGB in place on Wednesday. ALL the indexes are putting in SGB’s and with earnings season underway, there can be some wild swings so caution is the way to play and keeping some wild card PUTS on is what I plan to do.
The $DJI is very close to hitting the pre-COVID Crash highs, so anything can happen in the coming week etc
The QQQ has surpassed the COVID–Crash (red line) by a wide margin and put in a SGB this week making PUTS a good bet down to the 245 strikes.
Here are the trade strikes on the SPY to consider: NOTE: It is rare that we can almost get ATM strikes at our MAX spend of $3.00; which gives me a little pause due to the SGB’s, so I am going to “layer” some strikes today and buy some Lotto Trade PUTS too.
Here are my TRADES and ORDERS on the SPY today: I bought the Jul 27: 324,325 and 326 CALLS I have a GTC order in for the Jul 27 323 CALLLS at the max spend of $3.00 Here are my wild card Lotto Trade PUTS (optional trades)
You still have until 1:15PM EST to place these trades on the SPY. Have a great weekend! Profits UP!
==================================================================================================================================== MONDAY – 7/13/20 12:47 PM - Greetings Traders! If you held onto last weeks (315 CALLS) trade until expiration today then you got a nice GIFT DoubleUP! or even higher!
If you rolled out of last weeks trade to this weeks, then you also got a DoubleUP! opportunity today—that is why you should always take half off so you have a free roll trade the rest of the week!
The journey to the land of 6-Figure profitability continues! ====================================================================================================================== FRIDAY – 7/10/20 0:50 AM - CORRECTIONS…CORRECTIONS… I meant to type I bought back the 315 CALLS and rolling out into the 320 CALLS.
Greetings traders! This weeks trade is struggling to gain profits, and with the SPY hanging around a triple SGB zone, we may very well see a move to the downside early next week; however, the daily chart has “red” dots forming on the TTM Squeeze, so a move is eminent. With earnings season cranking up next week, there will no doubt be increased volatility, so I am still sticking with CALLS for the strategy, but reducing size and adding some Lotto Trade PUTS too. Since last weeks 315 CALL trade is struggling to get back into profits, I am going to close it today and roll that money into next weeks trade—this tactic is called “rolling out” your trade to longer duration. I bought back the July 13 215 CALLS for $2.00, and I am rolling into the July 20 219 CALLS spending an additional $0.21 for the trades; keeping the same contract loads at this time.
Here is my LOTTO Trade PUTS for next week.
===================================================================================================================== MONDAY – 7/6/20 12:47 PM -
I sold my final contract for last weeks trade!! $$ !! If you are still in it, you can get more than I did $$$$$
This weeks trade is building profits too! ====================================================================================================================== THURSDAY – 7/2/20 12:52 PM - Greetings STIMULUS–COMPOUNDER traders! We are having another BIG winning trade this week and now I am starting the next one since the markets are closed tomorrow. I was filled on the Jul 13 315 CALLS
I am holding my final contract (which is a free roll) of this past weeks trade into expiation on Monday because I am anticipating a post 4th of July rally!
Since we started this journey on 5/1/20, here are the current Model Portfolio results based on the +1 contract after a winning trade: And here are the results based on the more aggressive +1 contract each week regardless of a win or loss: This strategy WORKS and is on pace to reach 6-Figure by the end of this year!!!! Once we get the VIX trading back under 15, we can start the TGIF PAYDAY! strategy; and with the BIG PROFITS from this STIMULUS–COMPOUNDER strategy; you will be able to jump in with much higher initial contract loads and accelerate your journey to the land of 7-Figure profitability!!! Hope you have a great 4th of July weekend!!
================================================================================================================== WEDNESDAY – 7/1/20 11:05 AM - Greetings Traders! I took half off again at another DoubleUP! on the July 6th CALLS.
I will hold the final contract into expiration hoping for a nice rally on Monday!
===================================================================================================================== TUESDAY – 6/30/20 12:58 PM - UPDATES: I was filled at my DoubleUP! on the 7/2/20 calls
I am holding onto the the Jul 6 CALLS
========================================================================================================================= MONDAY – 6/26/20 9:51 AM - Greetings Compounder Traders! I was filled today on a couple more of the July 6th expiration CALLS this moring at the MAX spend of $3.00.
I now have 4 of my 10 lot filled and will continue fishing today for some more of the July 6 305 CALLS at $2.00 or better. As for the current trades, I plan to sell the July 2 expiration if they get anywhere close to a DoubleUP! and then let the July 6 calls ride.
Profits UP!
============================================================================================================================ FRIDAY – 6/26/20 12:10 PM -
I just noticed I was filled on the 7/2/20 expiration. I am also placing an order for the 7/6/20 expiration at $3.00 MAX and if not filed today, I will adjust next week.
Greetings Compounder Traders! Last weeks trade was NOT filled and good thing, because the markets sold off all week and is not trading UNDER the 200 MA today. The SPY has now taken out both SGB zones on the daily chart is testing the last one; which will be the make-or-break for the next week or two. Therefore, I am NOT going with my full contract load today. I will bought 2 of my 10 JUL 6 - 305 CALLS today and fish for the lower strikes Mon/Tue and or buy in on the rest next week after I see how the markets react to today’s action—I am anticipating a July 4th rally.
Have a great weekend! ================================================================================================================= FRIDAY – 6/19/20 12:44 PM - My bad <8-) I input the wrong strike price on the Lotto Trade PUTS below. Now you can actually get the 298 – 299’s for $0.30 or lower
Jun 24 297 PUTS MAX $0.75 — Should be 293 PUTS for $0.75 or better FILLED:
And now you can actually get the 295’s if you have not already bought in.
===================================================================================================================
FRIDAY – 6/19/20 11:53 AM - Greetings STIMULUS traders! We had a great trade this week and you should have taken your profit stop between 8 – 13!!
This week the SPY has TWO SGB’s and failed today to take out the last
one, so I am going to buy some Lotto Trade PUTS and FISH for the CALLS
at a lower strike price for weeks trade.
STIMULUS trade idea: Jun 29 311 CALL MAX $3.00 GTC Due to the SGB’s, I am initially fishing for HALF my normal contract load (2 vs. 4) on the CALLS and will adjust next week once I see how things progress.
LOTTO TRADE ideas are optional: Jun 22 295 PUTS MAX $0.30 Jun 24 297 PUTS MAX $0.75 FILLED: NOTE: DO NOT follow my size on Lotto Trades…I trade with a large account and have the ability to absorb losses. You should trade ONLY the size you are 100% prepared to lose when doing Lotto Trades—and trading with PROFITS is the best way to speculate. Here is the chart for last weeks trade:
=========================================================================================================================
TUESDAY – 6/16/20 11:25 AM -
Greetings STIMULUS Traders! We have another JACKPOT WINNER!!!$$$!!! You should have taken another DoubleUP! and/or closed this weeks trade, but if you have not yet, be sure to put in a hard profit stop loss at $8.00 GTC or higher—it is not necessary to chase tops on a single trade…the goal is to keep compounding the contract loads to MAXIMIZE your profits growth curve over time. As you build up contract loads, then you can layer exits and ultimately keep larger and larger contract loads on until expiration day.
Here are the YTD profits since we started this strategy 7-SHORT weeks ago…AMAZING RESULTS! Compound Method 1 The aggressive compounding at 50% of profits into the next trade has been slowly ramping up, but soon it will surpass the other compounding methods below at the current pace!
Compound Method 2
The modest compound rate at +1 contract AFTER a winning trade has made
an impressive % ROI in 7-WEEKS!!! Compound Method 3 Currently the plus 1 contract with each trade is producing the highest YTD PROFITS; however, it took more capital initially to get the compounding started. If you have the capital, and can handle the potential initial draw downs, compound method 2 or 3 can get you kick started much faster; and then you can do compound method 1 at a higher initial contract load and get parabolic profits which will accelerate your journey to the land of 7-Figure profitability!!
================================================================================================================= MONDAY – 6/15/20 12:57 PM -
Greetings Stimulus Traders! We hade a nice drop-n-pop today on this weeks SPY trade giving us the perfect entry at $3.00 and the DoubleUP! selling half of the positions. We now have a free roll on the remainder for the rest of the week and with the news today that the FED is starting to buy individual corporate bonds, we may get some continuation to the upside so hold on and see what happens. ========================================================================================================= I am putting in an order on the Jun 22 305 CALLS at the MAX spend of $3.00 and will see how things progress next week.
===================================================================================================================
FRIDAY – 6/12/20 12:57 PM -
Greetings Stimulus traders! This past weeks trade was starting to gain profits; almost reaching the DoubleUP! target; however, the markets were whacked post FED meeting on Wednesday; and we are going to most likely expire worthless on Monday. Unfortunately, we can’t win em all, but the previous week was such a HUGE profit, we are still on the move to higher ground. Looking at the current strikes available, the volatility has priced us out of entering a trade today (even 5 handles OTM), so we just place our orders as GTC and see if we get a fill in the next couple of trading days. I am putting in an order on the Jun 22 305 CALLS at the MAX spend of $3.00 and will see how things progress next week. Here are the YTD results so far:
Other Compounding methods: Add 1 contract each trade regardless of win or loss
Add 1 contract ONLY after a winning trade
Have a great weekend!
===========================================================================================================================
FRIDAY – 6/5/20 12:35 PM -
Filled on the 321’s
Greetings STIMULUS Traders! Now that the Model Portfolio is ready to compound, I do not want to jump on all my contracts today because the markets have rallied so much making the options more expensive; therefore, I am going to “layer” some strike prices just in case markets pull back early next week from this rally; giving me an opportunity to get more contracts later. Based on the STIMULUS֪–COMPOUNDER formula, we look at the strike price that is NO HIGHER than $5 OTM, and if the cost is lower than $3.00, we can either buy MORE contracts or buy the lower strike that is $3.00. Today I have $1,200 to spend which means I can buy up to 4 contracts at $3.00. As of this email, the SPY is at $320.07 and the 325 Jun 15 strike is $1.81; which is well below our MAX price of $3.00; therefore, I could actually buy 6 contracts with my $1,200; however, the IV is pumped up right now, so I am going to attempt to buy 2 contracts of the 321 strike price for $3.00; and if I do not get filled by the end of trading, I will adjust to the closest strike price I can buy 2 at for $3.00; and then see where the strikes are priced on Monday just in case markets pull back early next week.
Have a great weekend!
======================================================================================
FRIDAY – 6/5/20 7:25 AM -
Took my MASSIVE PROFITS and will look to enter the next trade today! CONGRATS if you are still in your trades…the compounding has begun!!
======================================================================================================================
WEDNESDAY – 6/3/1/20 8:53 AM -
I took half off at the DoubleUP! Now we have a free roll on the remainder!!
=========================================================================================================================
MONDAY – 6/1/20 10:12 AM -
Greetings STIMULUS Traders! I closed out last weeks trade.
The compounding has begun and the YTD ROI is almost at 100%!! Let’s keep this ball rolling on down the road to the land of 5 then 6 and ultimately 7-Figure profitability !!$$!!
=====================================================================================================================
THURSDAY – 5/29/20 1:06 PM -
Greetings Traders! I bought into the next STIMULUS–COMPOUNDER trade. You can still buy the SPY options at most brokerages until 1:15 PM EST.
307 CALL expire 6/8/20 If not, then look for your entry on Monday. Have a great weekend!
====================================================================================================== THURSDAY – 5/28/20 6:54 AM -
Greetings Traders! I sold half my position for a littler better than a DoubleUP! and will see how the rest turn out by expiration day.
=====================================================================================================
FRIDAY – 5/21/20 11:04 AM -
Greetings Traders! Overseas Hang Seng Index gets CRUSHED the past two days and our markets are basically holding ground???—large divergences typically lead to BIG drops in our future; which shows us the FED is artificially propping up the markets.
I am loading up on PUT Lotto Trades for next week on the QQQ and SPY as a “hedge” against all my longs; however, my bias is still LONG—can’t fight the FED until it’s dead…lol.
PS. Take a look at how the SGB’s showed up just before the HUGE DROPS!
If you have a small account, just stick to the compounder strategies and continue the journey.
Have a nice three-day weekend!
===============================================================================================================
THURSDAY – 5/21/20 12:45 PM - Here is my next STIMULUS trade:
JUN 1, 2020 299 CALL
I am starting the next trade a day early because I can get a little better strike and at a lower price than my MAX buy of $3.00 The Daily chart has the SPY setting up for a squeeze breakout out and/or break down. I am still biased on CALLS and tomorrow I will consider a couple wild card Lotto Trade PUTS the expire next week.
============================================================================== TUESDAY – 5/19/20 9:45 AM -
My trail stop was hit today on the SPY trade for a little better than a DoubleUP! profit.
I will be looking for my next entry point or just wail until Friday to put on the next one…will update everyone if I get back in—be sure to put your stops in at the minimum DoubleUP! profits if you are still in your trades.
======================================================================================================================
FRIDAY – 5/15/20 9:45 AM PST - I bought the next STIMULUS–COMPOUNDER trade today and also picked up a PUT for hedge since the volatility has been wild this week. The current trade will most likely expire on Monday so we just keep applying the formula and as the compound begins, ALL losing trades will be wiped out.
============================================================================================================= SUNDAY – 5/10/20 2:00 PST - First off, I am changing the name of this strategy from COVID–COMPOUNDER to STIMULUS–COMPOUNDER because that sounds more like what we are working towards during these difficult and volatile times—compounding stimulus cash into our trading portfolios!
A powerful week of volatility we had the first STIMULUS–COMPOUNDER trade a marginal success. The first trade on the 288 CALLS was entered into on Friday and then Monday we got a dip getting me filled on the next order at $1,74. The next day, the trades were almost at a DoubleUP!, so I put in a trailing stop at the end of the day only to see the SPY take a nose dive immediately after; as if I was the one there trading that strike price??
Well, from now on, I will NOT place trailing stops on these trades anymore; until I have a substantial profit well above a DoubleUP!. That way, I am always locking in profits and can decide to let the rest ride, but for now, I will leave my trades on all-or-nothing until I have compounded to 10 contract loads, then I will adjust profit taking in multiples of 2 at each DoubleUP! interval.
After I was stopped out of the first trade, I decided to wait until the next day and placed a new order for the 288 CALLS with the expiration date of (5/13/20); however, I was not filled on that trade.
However, I did have another fishing orders in on the 290 CALLS that expire 5/13/20; and those did get filled (twice), so I am still in the game. Unfortunately, I forgot I had those orders and did not see the fills until the evening time when I was going through all my trades for the day, so I did not post it or send out emails...my bad—if you are still in the first trade, then Monday is looking good for you to cash out with a nice profit!
On Friday I started the next trade and was able to get in at a lower strike and entry price; which are also currently building profits, so if we get the continuation rally Monday, then we are well on our way my trading friends!
=========================================================================================================== FRIDAY 5/1/20 12:000 PM PST - Here we goooooo...the first trade has been bought, and the other orders are in place.
=========================================================================================================== STIMULUS–COMPOUNDER Strategy Details:
FRIDAY 5/1/20 1:30 AM PST -
I have back tested what I think will be a VERY POWERFUL strategy that will give us a high probability of making some substantial gains during this COVID-19 crisis volatility.
In the past few weeks, I have been attempting to catch Lotto Trades and working GOLD trades with little success because the volatility has been so high; and I believe the FED is MANIPULATING Gold; keeping it from making a parabolic move for the time being.
With all this volatility, we just cannot get the "cheap" options, and that has kept us from doing the TGIF PAYDAY! Trades at this time.
Well my trading friends, I think we are going to be back in the game with the new COVID–COMPOUNDER strategy!
I back tested the past 6-weeks, and I have pinpointed the "sweet-spot" trade setup I believe we can exploit!
Here are what the results have been so far:
I applied the compound rate of 50% and the MAXIMUM SPEND of $3.00 per contract to get these AMAZING results!—I even lowered the sold price from the high shown below...wow!
NOTE: Once you start compounding, you should ALWAYS take half of at a DoubleUP! and then follow the rest with trailing stops—YOU DO NOT need to hit the top...just let the compounding work for you and profits will explode.
Here is what the weekly SPY chart looks like:
I picked strike prices up to 5 handles higher than Friday's closing price and below are the actual option charts:
Here is what the VIX has been up to since COVID broke out:
Now that the SPY has gained back nearly 55% of the COVID crash, we could see one more thrust higher as states begin opening up starting today.
If we have indeed flattened the infection curve, and no more jumps in cases arise as we emerge from our homes, then the markets should continue higher; even taking out ALL of the sell off; however, if there is a sudden spike in infections etc. and we have to return to shelter-in-place again; I would anticipate an implosion of all this rebound; therefore, I plan to put in orders for both PUTS and CALLS each week so I can catch the next wave $$$
The plan is to wait until 12:30 PM PST on FRIDAYS and look for PUTS and CALL strikes that are $3.00, but NO MORE THAN 5 handles higher/lower than the current price.
If I can get that strike for $3.00, then I will buy in and lay orders for $2.00 and also $1.00 GTC.
If there are none available, then I will pick the strike that is 5 handles higher/lower and put in the GTC orders for $3, $2 and $1 and see what happens on Monday.
IMPORTANT: The expiration is always the Monday 11 days in the future.
Here is an example of what the orders look like:
These orders are not canceled until the following Wednesday; and if I get filled at $3.00 before that; I will still keep my lower priced orders in place; however, if you have a small account, then you can just start with 1 contract at the MAX of $3.00, and once we get a winning trade locked up, then we start to compounding and hopefully we get similar results in the next 6-8 weeks that we have seen in the past 6 weeks!
Profits UP!
Frank
|
|
|
©1999-2023 www.OptionRadio.com All rights reserved.
Privacy Statement Terms of Service Disclaimer
|
|
© 1999-2023 OptionRadio.com All Rights Reserved.
Reproduction without permission is prohibited.
U.S. Government Required Disclaimer - No profitability nor performance claims of any kind are being made on this entire website, email distributions or recorded content. All information provided herein is for educational purposes only and should not be construed as investment advice. Site visitors are advised that trading is a high-risk, speculative activity and that generally expected customer results are that all traders will incur trading losses, regardless of the training they may receive and will not become profitable. You accept all liability resulting from your trading decisions; we assume no responsibilities for your trading results. All sales are final for all products and services sold and no refunds are offered. We are not an investment advisory service, nor a registered investment advisor. No individual advice nor trading management services of any kind are provided, therefore no member nor subscriber should assume that their participation in the services provided herein serves, nor is suitable as, a substitute for ongoing individual personalized investment advice from an investment professional chosen by the member/subscriber. Nothing in our website shall be deemed a solicitation or an offer to buy nor sell stocks, currencies, futures, options or any other instrument. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Site visitors, email subscribers and customers hereby agree to all terms found in our complete disclaimer, terms of use and privacy policy pages. Every visitor to this site, and subscriber (or prospective subscriber or customer) acknowledges and accepts the limitations of the services provided, and agrees, as a condition precedent to his/her/its access to our sites, to release and hold harmless OptionRadio, its officers, directors, owners, employees and agents from any and all liability of any kind (including but not limited to his/her viewing of this sites' content, emails, subscription to services and/or purchase of any trader training product or service herein). Trade with discipline and you will have smarter, winning trades. |
SPY:
SPY: 
SPY:
