Entry is Key...Exit is Everything! TM

 

 

2021 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 4/16/21

 

Current Trade Idea

IV%: 12.34%

MM +/- 5.99

VIX: 16.33

 

 

Long Term

 Bullish

 

 

Risk Tolerance: VERY Aggressive 50% Compound Rate

 

 

Click HERE for full 2021 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!

 

2021 STIMULUS Trades  /  2021 STIMULUS Charts  /  2021 Main Navigation 

 

 

 

 

   WEDNESDAY – 4/14/21 12:19 PM PST    – MORE UPDATES for NEW Stimulus-Compounder trade ideas for 4/16/21 and 4/19/21expirations

 

 

 

Greetings SC Traders,

 Unfortunately, the Coinbase (COIN) IPO had a negative impact on the markets and selling across kicked on taking the SPY lower hitting my profit STOPS.

 

 

 Overall, I still have solid profits on the 50% ROI and a small gain on the “core” SC trade.

 

Here was yesterdays 50% ROI fill: 

Friday we continue the journey! 

Profits UP!

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   TUESDAY – 4/13/21 9:33 AM PST    – UPDATES for NEW Stimulus-Compounder trade ideas for 4/16/21 and 4/19/21expirations

 

 

Greetings SC Traders!

We have another winning 50% ROI trade today!!

My GTC profit order was filled on 3 of the 4 countracts, and now I will see how things progress into tomorrow with the final contract. I have placed a profit stop $1.00 below the current BID, and I will move it up with each $1.00 in gains until I get stopped out or close the trade on Friday expiration.

This is the beginning of “layering” your exits as you build contract loads so you can still be in the trade to expiration; catching those potential parabolic moves without risking the entire lot.

At the current trajectory, the Model Portfolio is on track to reach 6-Figures in 16 – 20 more weeks!!

On the next SC trade this Friday, the contract loads move up to 5 for the 50% ROI model portfolio.

 

 

 I still have the 4-19-21 410 CALLS in place and will put in a stop loss at break even on this trade; while keeping my profit traget at a 100% ROI or higher.

 

Profits UP!

 

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   FRIDAY – 4/9/21 11:50 AM PST    – NEW Stimulus-Compounder trade ideas for 4/16/21 and 4/19/21expirations!

 

 

Greetings SC Traders!

 

Here are my trades for next week:

I bought (1) 19 APR 410 CALL for: 2.80 (MAX is $3.00)

Initial target is a DoubleUP!

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50% ROI Trade

I bought (4) 16 APR 409 CALLS for $2.98 (MAX $3.00) 

 I am going to start layering my exits by keeping 1 contract on beyond the 50% ROI target.

 

 NOTE: If you cannot get my strikes, you can move up 1 or down1 depending on prices, but NEVER spend more than $3.00 Max for your strikes!

 

WOW…another BIG WINNER for the “core” SC strategy if you were holding onto some contracts and if you were out at the DoubleUP! on Monday, then you can know things will get very exciting in the future when you are compounding!!$$!!

 

 

If you are still in your trades that expire this coming Monday, I would suggest you take these massive profits today and move onto the next trade; because the way to 6-Figures is NOT on single trades, but when you get your compounding ramped up!

Have a great weekend!

Profits UP!

 

 

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   MONDAY – 4/5/21 6:52 AM PST    – UPDATES! Stimulus-Compounder trade ideas for 4/9/21 and 4/12/21expirations!

 

 

Greetings SC Traders!

Both my GTC profit orders were filled!!!

The 50% ROI profit order was filled at the open for a BETTER PRICE!!—another winner +88% ROI !!!

And the “core” trade achieved my 100% ROI goal too!

 

  

Hope you are making similar Profits UP!

Next trade compounds to (4) contracts!!!

If you are still in the trades, be sure to follow the profits with a stop at the target ROI, so you can lock that in, and keep on moving down the road to the land of 6-Figure profitability!!!!

Profits UP!

 

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   THURSDAY – 4/1/21 8:52 AM PST    – NEW Stimulus-Compounder trade ideas for 4/9/21 and 4/12/21expirations!

 

Greetings SC Traders!

We are moving on down that 6-Figure road with the 50% ROI Model Portfolio now at (3) contracts!

Also, with today’s DoubleUP! win on the “CORE” Model Portfolio, it is now in the GREEN $$$ too!

This weeks 50% ROI trade is compounding to (3) contracts so that means your total spend would be $900.00 at the MAX $3.00. How you use that money is up to you and with the markets continuing to rise, there is always the possibility of reversal; however, we are on the BULL trend which is our friend until the end!

With the VIX trading down today, the option prices are “CHEAP”, so we can actually get an ATM strike for LESS than the $3.00 MAX spend!!

 

Here are my next trades for the Model Portfolio Stimulus-Compounder strategy:

I bought (1) 12 APR 400 CALL for: 2.70 (MAX is $3.00)

Initial target is a DoubleUP!

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50% ROI Trade

 I bought (3) 09 APR 399 CALLS for: $2.89 (MAX is $3.00)

You should have a GTC order in to sell these for $4.35

 

 

Wishing you a nice holiday weekend and Happy Easter!

 

Profits UP!

 

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   FRIDAY – 3/26/21 1:23 PM PST    – NEW Stimulus-Compounder trade ideas for 4/1-21 and 4/5/21expirations!

 

WOW…I was already filled on my 1 APR 392.50 CALLS and got a 61% PROFITS UP!!!!

If you are still in yours, then you may get a very nice gain on Monday if markets continue this momentum!$$!

The next trade on the 50% ROI Model Portfolio goes to (3) contracts!!!

 The 5 APR 394 CALLS are almost at the DoubleUP! too, so if the markets are exploding higher on Monday, I will cancel the sell order and see where it goes next week.

 AMAZING…can’t wait until we are compounding 100+ contracts and get a lot more of these parabolic moves—BIG TIME CHA-CHING$$$$$$$$$$$ are coming our way!!!!!

 

Have a great weekend!!

Profits UP!

 

 

   FRIDAY – 3/26/21 12:30 PM PST    – NEW Stimulus-Compounder trade ideas for 4/1-21 and 4/5/21expirations!

 

Markets have been all over the place this week making things quite frustrating if you were working trades day-to-day. Last weeks trades were stopped out on Monday at slight profit and I was not liking all the volatility so I decided to wait until today to start the next trades.

 

Next week the market is closed for Good Friday so we have to go with Thursday for the 50% ROI model. There is still quite a bit of uncertainty but I am looking for a positive move heading into the Holiday week of trading.

 

Ok, here are my trades:

I bought (1)  5 APR 394 CALL for: 2.58 (MAX $3.00)

Initial target is a DoubleUP!

 

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I bought (2) of the 1 APR 392.50 for $2.88/$2.85

NOTE: This trade should have a GTC “sell” order in at a 50% ROI.

IMPORTANT: If you cannot get my exact strike prices, you can either put in the order and wait to see if you get filled or move up 1 strike; however, you should NEVER go any further than 4 strike prices OTM from the current SPY price when you are placing the orders.

 

Profits UP!

 

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   MONDAY – 3/22/21 4:44 PM PST    – UPDATES for Stimulus-Compounder trade ideas for 3/22/21 expiration!

 

Greetings SC Traders!

Unfortunately, we did not get a big enough rally today to bring last week's SC trade back to life; however the 50% ROI trade worked out early in the week and recouped some of the loss from the "CORE" strategy trade.

The trade was on its way to the DoubleUP!  target, but lost momentum, and this time, I did not have a profit stop in place. I would recommend that if you have limited capital, then once you get close or in range of that magical DoubleUP!, you may want to place a stop slightly above a breakeven; however, be aware that the trading bots will hunt for them just like they did on me today with this week’s trades.

The good news is the 50% ROI variation is running on all cylinders; taking up the slack for now, and once the “CORE” strategy gets on a consistent track, the compounding will wipe out any and ALL losses incurred in a few winning trades!

 

Here are the updated results for both SC strategies as of today:

The “CORE” strategy is still in limbo, but the new 50% ROI variation is advancing; giving the overall Model Portfolio’s a positive YTD gain!

 

At the current pace, I anticipate the 50% ROI Model Portfolio will reach 6-Figures in 18-25 more weeks, but when the “CORE” strategy kicks in…then it can be even sooner!! 

NOTE: If you are doing both variations of the strategy, be sure to compound them separately; once you get to 10+ contract loads; then you can start layering your strikes, entry/exits prices and, accelerate your journey when the parabolic days/weeks come along in the future!!$$!!

If you have limited starting capital, then stick to the 50% ROI until we get a solid trend going on the “CORE” strategy.

 

 

As suspected, my stops were hit!

 

 

It is sometimes frustrating to get stopped out; however, last weeks “CORE” trade is ending up a loser, so I did not want to take a back-to-back hit.

I am going to look for another entry on the 26 MAR 392 CALL or lower strike depending on how the markets react in the next couple of days; otherwise, I will just wait until Friday and do the next trades then.

 

 

This weeks 50% ROI is ramping up and may just hit the 50% ROI exit today!

 

I have my GTC SELL order in place at a 50% ROI on the (26 MAR 392 CALL); and now I am going to place a profit stop; because we have a lot of FOMC activity all week that can make a very positive or negative impace on the markets.

 

I have also placed a stop on the  “core” (29 MAR 393 CALL) trade too but will not move that up until I get to 100% ROI.

 

 

 

 

I am anticipating a lot more positive UPSIDE action all week as I do not think Chairman Powell has any intentions of upsetting the markets so hopefully the “core” trade will be a huge winner and get back on track so we can start compounding there too!

 

 

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   FRIDAY – 3/19/21 10:42 AM PST    – NEW Stimulus-Compounder trade ideas for 3/26/21 and 3/29/21 expiration!

 

 

Greetings SC Traders!

 

Here are my next trades for the Model Portfolio Stimulus-Compounder strategy:

 

I bought (1) 29 MAR 393 CALL ($3.00 MAX) for: 2.48

 

 I bought (2) of the 29 MAR 392 CALL ($3.00) MAX for $2.59

 

NOTE: This trade should have a GTC “sell” order in at a 50% ROI.

 

IMPORTANT: If you cannot get my exact strike prices, you can either put in the order and wait to see if you get filled or move up 1 strike; however, you should NOT go any further than 4 strike prices OTM from the current SPY price when you are placing the orders.

 

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Commentary

 

What a week of volatility we have had with the SPY reach a new all-time-high, the Fed chair Powell guaranteeing NO rate hikes for a couple years and stimulus money arriving in millions of bank accounts have had quite the roller coast effect on our trades for this week. Oh, and this being quadruple witching has also had some impact too.

On Monday, Tuesday or even Wednesday, the 50% SC trade did reach the 50% ROI if you had you GTC orders in!!

 

However, the “CORE”  22 MAR 394 CALL is currently in jeopardy if we do not get a strong rally on Monday expiration. When you are starting out with 1 contract loads, you are typically in that trade all-or-nothing; however, I do recommend that once you are close to achieving the 100% ROI target but not quite there (as was the case with this trade) you may want to put in stops at a break even to preserve capital if you are starting out with very limited funds. Once you are compounding, then you can begin to layer your exits at 50%, 75%, 100% and beyond to capture the week-to-week volatility move etc.

 

Another way to play this is when the SPY is still inside the “range” for for the strategy, you may want to dollar-cost-average the trade by adding some contracts and see if you can get back to a break even—but I would not do that unless you are adding with PROFITS from previous trades.

Otherwise, you should just stick to the “CORE” strategy and buy the next trade and keep things moving as we will have potential losing weeks and a lot more winning weeks that ultimately wipe out ALL the losing ones in the future. 😊

The main goal with this strategy is to let the “compounding” take care of everything and try not to micro-manage the trades. You want to prefect applying the KISS method with this so you can be on vacation and not glued to your computer screen watching every tick…know what I mean?

Profits UP!

 

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   FRIDAY – 3/12/21 11:42 AM PST    – NEW Stimulus-Compounder trade ideas for 3/19/21 and 3/22/21 expiration!

 

 

 

Greetings SC Traders!

Here are the Model Portfolio trades for next week: 

BUY  (1) the 22 MAR 394 or 395 CALLS ($3.00 MAX)

I was filled for: $2.84 

BUY (2) of the 19 MAR 394 or 395 CALLS ($3.00 MAX)

I was filled for: $2.57

I will have a GTC order in to sell these for $4.00

 

For the optional HEDGE I bought this Bear Put Spread:

19 MAR 385 / 370  for a $1.18 DEBIT with MAX profit of $6,900 if the SPY drops below 370 by expiration.

I was filled for $1.18 Debit

What an amazing week we had for the strategy and what a BUMMER I put in a profit stop loss and was ROBBED because the next day the news of the stimulus bill passing congress came out and the markets roared to new all-time-highs exploding those options to over $9.00 bucks! If you were still in your trade I hope you took those Profits UP!

 

 

Even though I missed out on a HUGE winner this week, I still made an over profit on both my trades so as long as I keep doing that I will arrive in the land of 6-Figure profitability anyway! The challenge for now is the main Model Portfolio is still at 1 contract so I do not have the ability to take half off and let the rest ride for the time being; however, the 50% ROI Model Portfolio is starting to compound today!

Now that we have the stimulus bill signed into law and the 1.9 TRILLION (fake fiat) money will be hitting bank acconts starting next week, we should see continued upward momentum in the markets; however, you can never be 100% sure of anything with trading, so I am still going to pick up some PUTS as a “hedge” for next week. If we keep moving on up, the compounding will wipe out all the PUTS that have been bought in a few weeks and exciting things will begin to happen with your trading accounts!

 

 The weekly chart tells a different story with that DOJI SGB and the solid bounce off the 12/31/21 close. Until we get back into the long-term momentum channel, the SPY is vulnerable to more downside potential so that is why I am keeping my PUT hedge plays on.

 

Have a great weekend!

Profits UP!

Frank

 

 

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   TUESDAY – 3/8/21 12:49 PM PST    – STOP HIT UPDATES for Stimulus-Compounder trade ideas for 3/12/21 and 3/15/21 expiration!

 

 

Greetings SC Traders!

 I was  PROFIT stopped out in both of my accounts:

ROI on this trade was: 47%

 Nice gains overall between the two trades!

I will be looking for the next SC trade on Friday!!

 Profits UP!

Frank

 

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   TUESDAY – 3/8/21 12:49 PM PST    – MORE UPDATES for Stimulus-Compounder trade ideas for 3/12/21 and 3/15/21 expiration!

 

 

Greetings SC Traders!

NICE rally today in the SPY!!

I am placing a GTC STOP order on my MAR 15 387  CALLS at a 64% ROI since we have strong momentum today and I already got the 50%+ ROI on the first trade!.

I will move up this stop at each 50% increment as the week continues, and hopefully, this trade goes well above 100% ROI!!

If not, I still averaged a 100% ROI overall between the two trades!!

 

 

 

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    MONDAY – 3/8/21 12:49 PM PST    – UPDATES for Stimulus-Compounder trade ideas for 3/12/21 and 3/15/21 expiration!

 

 

Greetings SC Traders!

I just got back into my trading room and noticed I was filled this morning on the 50% ROI trade for the 12 MAR 387 CALL.

Total ROI on this one was 64%!

Hope you had your GTC order in and got at least the 50% ROI!

I am holding onto the 15 MAR 387 CALLS for the week.

 

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    FRIDAY – 3/5/21 12:39 PM PST    – NEW Stimulus-Compounder trade ideas for 3/12/21 and 3/15/21 expiration!

 

 

Here are my trades for next week:

 BUY 15 MAR 387 CALL $3.00 or lower

 

 BUY 12 MAR 387 CALL for $3.00 or lower—target profit taking at 50% ROI on this one.

 

 For optional PUT hedge I bought these two strikes:

 12 MAR 375 PUT and 12 MAR 365 PUT for the wild card Lotto Trade.

 

 

 

Greetings SC Traders!

We had a nice quick return on the CALLS Monday and then the markets were slammed down all week; indicating the selling fears have entered the markets vs. the usual buy-the-dip mentality.

 

 If you were still holding onto the PUT spread, then you got rewarded today and should have sold for at least a DoubleUP!

 Here were my closing trades on the 277/367 Bear Put Spread

 

 

 

OPTIONAL HEDGE from last week: Mar 3 377/367 Bear Put Spread for $1.80 or less:

 

  

With the coming stimulus plan being debated in the Senate, investors are looking for any reason to get back on the upside track and with all the indexes I was watching today trading around the 12/31/20 close, it appears to me there is some solid support down here.

If they pass the stimulus plan (likely), then we should see a surge higher, and if the Senate stifles it, then more downside is definitely in the cards.

The daily chart shows the SPY rebounded right back into the SGB zone today, so if we get that continuation rally next week, I anticipate a potential move to take back all these recent red candles (three black crows pattern); therefore, my CALL strikes will be no further than 5 handles OTM; and for the PUT hedge, I plan to keep my strikes no further OTM than 10 handles lower; and if you want to try for a Lotto Trade, then stick to strikes just above the SGB zone below at 365 or higher.

 

 

Profits UP!

Frank

 

 

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   MONDAY – 3/1/21 12:34 PM PST    – UPDATES Stimulus-Compounder trade ideas for 3/5/21 and 3/8/21 expiration!

I was just stopped out of the Mar 8 388 CALLS

 Total gain on this one 66%.

 

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   MONDAY – 3/1/21 12:34 PM PST    – NEW Stimulus-Compounder trade ideas for 3/5/21 and 3/8/21 expiration!

 

Greetings SC Traders!

 Markets are on the rise for the first day of March trading!

 I closed my 3/5/21 387.50 CALLS for the +50% ROI

 

 Total gain is 77%!!

 I have a profit stop in at $5.55 on the 3/8/21 388 CALLS.

 

 

 

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    FRIDAY – 2/26/21 12:22 PM PST    – NEW Stimulus-Compounder trade ideas for 3/5/21 and 3/8/21 expiration!

 

 

My trades today:

 

 

Greetings SC Traders!

 

This week was wild and very volatile with many stocks getting whacked off their lofty highs as investors have been taking profits. We have had a controlled descent, which means the bottom is NOT in and there can still be a much larger (stampede)  move lower. The overall drop this week has been approximately 4.5% off the all-time-highs on the SPY, and until we see a full 10% move, we are still in a bullish bias. If the SPY does make that “correction” move, that would put the price down to 355; which happens to be a Fibonacci sequence number…hmmm coincidence?

When the markets are in “sell mode”, the SPY can move 40 to 45 handles in a weeks time; which is what it did back in Feb-Mar 2020.

The question is, are we in for a repeat of that massive sell off?

The answer is anybody’s guess, but the reality is, YES IT CAN happen again, and it is possible to be an even BIGGER move this time.

(SPY Feb-Apr 2020 crash)

Looking over the current weekly chart, we can see that the SPY is poised to continue to make another move DOWN next week; and if it does make the 10% correction territory move; that would put price right into the BIG SGB zone on the chart below.

So, if you are looking to do PUTS, you want your strikes to be at 365 or higher to assure you get maximum value on spreads or directional trades.

The SC Strategy is still biased CALLS with hedge PUTS or PUT Spreads; and with the SPY stopping today in a daily SGB zone; there is potential for a rally to start if any positive market and economic news hits next week.  

We know that investors have been in a buy-the-dip mentality for a few years now; and just about everyone is looking for that scenario so they can buy buy buy!

HOWEVER, the heard is generally wrong on both sides of a trade, so you need to be proactive rather than reactive if you want to be on the right side of the next BIG move up or down.

My trade plan for this week is to buy the Mar 8th 387 or 388 CALL for $3.00 or less, and then I am getting some Mar 5th 377/367 Bear Put Spreads as a hedge.

 

Email comments:

Mar 8th or 5th 387 or 388 CALL for $3.00 or less

 

 

 OPTIONAL HEDGE: Mar 5 377/367 Bear Put Spread for $1.80 or less:

 

If the SPY drops to 367 or lower, this spread makes 360% ROI at full value and that more than covers the cost of the CALLS.

 NOTE: When you are doing PUT hedges, those are calculated and compounded on a separate spreadsheet, and that capital expenditure is separate from the CALLS.

 If you are not able to expend that much, then stick to the CALLS with the strategy; however, we are currently on a bumpy road in our journey, so you can either navigate it taking the hits with the winners or wait until I post a couple winning weeks and/or the markets get back on a normal trend (which will happen) so you can resume your journey. Once that happens, this strategy will wipe out ALL losses in a few weeks, and the compounding will begin to rapidly build your account above and beyond in the coming months!

Profits UP!

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    TUESDAY – 2/25/21 12:33 PM PST    – MORE UPDATES for Stimulus-Compounder trade ideas for 2/26/21 and 3/5/21 expiration!

 

 

If you were not filled on your SPY 389/380 Debit Spread this morning, then consider taking profits now or at least putting in a break even stop.

 

 

However, if the market flushes out tomorrow, you will make the maximum credit of $6.50.

For me, I would take the profits today and move onto the next trade… the keys to the kingdom are in compounding contract loads and not winning big on any single trade 😉  

 

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    TUESDAY – 2/23/21 10:42 AM PST    – MORE UPDATES for Stimulus-Compounder trade ideas for 2/26/21 and 3/5/21 expiration!

 

 

Greetings  SC traders!

I was filled this morning on the SPY PUT Debit Spread at $6.00 Credit!

 

+4.18 Profit 235% ROI!

If you are still in your spread, move up your profit stop to 3.00 GTC and keep your profit taking orders in at $5.50 – 6.00.

 

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    MONDAY – 2/22/21 2:42 PM PST    – UPDATES for Stimulus-Compounder trade ideas for 2/26/21 and 3/5/21 expiration!

 

 

Greetings  SC traders!

 

Unfortunately, last weeks 392 CALL trade expired today; however, my successful 50% ROI 392 CALL trade helped reduce the loss on this trade.  

 

 I was NOT filled today on my 390 CALL 3/5/21 order, so I am cancelling it and will monitor and/or add to my current 391 CALL 2/26/21 50% ROI  trade in the next couple of days.

 

 The PUT spread is building profits, so I placed a GTC order to sell for a $6.00 credit; however, if I do not see more downside tomorrow, I will place a profit stop at 2.00 and follow that until my $6.00 credit order is reached or I am profit stopped out.  

 

 

So far, the SC strategy is struggling to get a consistent trend going (this is a 1-2 year journey), but eventually we will get on a smooth trend and begin to build up contract loads and BIG profits in the future!

 

 

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    FRIDAY – 2/19/21 12:30 PM PST    – NEW Stimulus-Compounder trade ideas for 2/26/21 and 3/1/21 expiration!

 

 

 

 

Greetings SC Traders!

 

We have two winning weeks with the new 50% ROI adjustment, and if this pace continues, then in a couple of months great things are going begin to happen in your accounts! With the stimulus looming, there should be a solid support bid on the markets; however, we have been trading in a sideways trajectory since the last SGB on the daily chart. Whenever I see SGB's, especially at all time highs, I am on guard and so should you be too. The bias is still CALLS until the markets clearly show me a change in overall direction. As for this last weeks trade, it has been struggling to hold onto a break even; however, since we got the 50% winner already, I am going to hold onto this current weeks trade into Monday expiration.

 

My plan for next weeks trades is to buy an expiration date further out since the volatility has come down and the MMM is less than +/- 10 handles; which will take longer to get the moves we need to attain a 50% and 100% ROI.

 

I am also buying some PUTS as an overall hedge on my accounts since the SPY has been in this sideways SGB zone; however, if you are just starting out with the SC strategy, then consider staying directional and taking profits at the 50% ROI until you get your compounding started. Then you can begin to layer and hedge etc.

 

 

 

 

This is my SC strategy trade for the 50% ROI

 BUY 391 CALL 2-26-21 expiration MAX $3.00 or better

 

Place a GTC Sell order at 50% ROI if filled.

For the  100% ROI trade, I cannot get a favorable strike price for the extra time, so I am placing a “fishing” order for the 390 CALLS at $3.00 and see what happens on Monday.

 

This is my PUT “hedge” trade and is an optional trade:

BUY 389 PUT 3/1/21 expiration

SELL 380 PUT 3/1/21 expiration.

 

MAX profit is $713.00 or 380% if SPY falls below 380.00 by expiration.

 

 

 

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   TUESDAY – 2/16/21 10:43 AM PST    – UPDATES for Stimulus-Compounder trade ideas for 2/19/21 and 2/22/21 expiration!

 

 

My profit GTC order on SPY  392 CALL 2-19-21 was sold today at the open for a nice 74% gain!

 

 

Looking for next trade.

I still have the 2-22-21 392 CALLS working with a GTC order at $5.00, but if the options get over $4.00 again, I will place a break even stop.

 

 

 

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    FRIDAY – 2/12/21 12:14 PM PST    – NEW Stimulus-Compounder trade ideas for 2/1/19/21 and 2/22/21 expiration!

 

 

Greetings SC traders!

Here my next trades I bought:

SPY 392 CALL 2-22-21 expiration

SPY 392 CALL 2-19-21 expiration (this one is the 50% ROI trade)

Here is my open order to close one at 50% ROI

I sold last weeks trade for a small profit and moved the money into this weeks trades.

 

 

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    TUESDAY – 2/9/21 9:56 AM PST    – UPDATES for  Stimulus-Compounder trade ideas for 2/16/21 expiration!

 

 

 

 

I reached the fist goal at 50% ROI and sold my contract.

 

 

Holding the other one looking for at least the DoubleUP!

 

 

 

 

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    FRIDAY – 2/5/21 12:30 PM PST    – NEW Stimulus-Compounder trade ideas for 2/16/21 expiration!

 

 

 

Greetings SC traders!

 

Here are are my trades for this coming week:

 

 

388 CALLS 2-16-21 Expiration

380 PUTS 2-12-21 Expiration.

I am buying (2) of the calls with the intent on selling 1 at the 50% ROI and leeting the other ride to at lest 100% ROI or higher.

I have the PUTS on for the Hedge especially since the markets rallies up all week.

 

Have a good weekend!

 

 

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    FRIDAY – 1/29/21 12:30 PM PST    – NEW Stimulus-Compounder trade ideas for 2/8/21 expiration!

 

Greetings SC Traders!

 

WOW... what a CRAZY week of trading with all the whack-a-doodle stocks like: GME, AMC, NAKD, KOSS and several others that were caught up in a massive (alleged reddit conspired) short squeeze. If you were chasing the action, and had the ability to just hold on for the ride, then you received a Vegas style slot machine reward. However, all this action created anomalies in the markets that I have not seen for nearly 20 years back when I started trading.

 

Unfortunately, this last weeks SC trade will most likely result in another loss; however, this strategy is proven and our time will come in the coming months; giving us massive profits that will eclipse any losses and making you way more profits than you may have got chasing the days action. By sticking to the core principles of this strategy, we will ultimately build up a stockpile of capital and be able to get on the next rocket-of-the-week trades without any fear of loss so you can stay in there and collect more and MORE profits!

 

Now that we are finishing up January, we have begun to see how PBJ is implementing his agendas and it's looking a bit ominous for the stock markets. This has caused some stifling in the momentum and could create a lot more turmoil until a clear direction on stimulus and policies are confirmed, so my plan is to continue with a CALL bias for now, but keep on some PUT spreads as a hedge with the intent to protect capital until the momentum returns and the compounding builds profits.

 

 

The primary goal with this strategy is to get the DoubleUP! or at least a 50% ROI in the beginning stages. Then once we do get that momentum going our way again, any and ALL losses we incurred in the beginning will be completely wiped out, and then we can begin to diversify the strategy with layering multiple strikes and entry prices, taking profits and multiple %ROI points, and expand into my other strategies to massively increase the profits as we accelerate to the land of 7-Figure profitability in the next 12-24 months!

 

The weekly SPY chart shows the momentum has been UNDER the mid-line for some time now and we are sitting right at the closing high's of 2020. If the SPY does break down from here, the first target is the SGB zone at 355 and then the last breakdown support ($340) back at the COVID-19 outbreak in Feb 2020.

 

 

 

The daily chart is also looking very BEARISH now:

 

 

 

 

Because the markets are in fear mode as the VIX is trading over 30, we need to back off buying directly in at $3.00 MAX spend and place FISHING orders at $2.00 for this weeks trade. Also, we can't go the usual maximum of 5-handles OTM because the IV is pumped up and we would be paying too much as well.

 

 

 

 

SPY MMM

 

 

If the SPY actually makes it to the MMM next week, that would potentially put it around 388 UP or 356 DOWN. I know from past experience it is much easier to hit the lower number than the higher one, so I want to make sure I would be at least 5 points ITM if the higher one comes; therefore, I suggest we FISH this weeks trade at the 375 strike GTC for the $3.00 MAX spend.

 

 

 

 

 

 

 

For the PUT hedge, I am looking at buying in today with my sold strike at the SGB zone on the daily chart (354) which is an easy target if the MMM is hit to the downside.

 

 

 

 

BUY 365    PUT    x SELL 355    PUT  

I want to pay NO MORE than $180.00 Debit or lower

Profit up to $828.00 (460%) if SPY fails current support and falls the MMM of +/- 15.00

 

Profits UP!

 

Frank

 

 

 

 

 

 

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    FRIDAY – 1/22/21 12:30 PM PST    – NEW Stimulus-Compounder trade ideas for 2/1/21 expiration!

 

My Trade: 

 

385 CALL 2-1-21 expiration:

 

 

Greetings SC Traders!

 

We are about to enter into the final trading week of January, and so far, the markets are still showing their willingness to climb higher. With the transfer of political power complete, and no more uprising from outraged citizens, it appears that politics will become the news of the day for the first few months as our new prez (Joe Biden) has wasted no time implementing (via executive orders) his nutty agendas; and promising to reversing as much (if not all) of Trumps executive orders; while setting the tone for his way of rule as we head on down this new political road to sticky-sweet and/or a crunchy outcome—kind of reminds me of eating a nutty peanut butter and jelly sandwich turned inside out... A-ha! I will refer to the new prez as PB-J!

 

Looking over the SPY charts I want to point out that yesterday was a DOJI SGB at an all-time-high, so we have to continue to be on guard for an upset in the markets trend; however, I will continue the trading journey and remain on the CALL side until the markets clearly show us a reason to switch; and as we build contract loads, I will always have some PUTS in place as a hedge just in case the tables turn.

 

 

This week was NFLX earnings and they blew the doors off launching the stock over $90 dollars higher! If you did the first Lotto Trade of 2021, then you captured a massive winner of 450% on the Spread trade I emailed out, and as much at 1,300% on the CALLS!—be sure to let me know if you want to be on the Lotto Trade ideas email list so you can cash in as earnings season continues.

 

The model portfolio has begun building profits and the current contract load remains at (1) for the time being. After we get a couple more consecutive winning weeks, the compounding will kick in and the profits will start increasing too.

 

 

This weeks IV and MMM are lower than usual, so we will need to have strikes closer than 5 OTM to assure the best possible odds of reaching our initial DoubleUP! targets.

 

 

 

The target strike zone for an OPEN directional CALL the 384 or 385's at the MAX spend of $3.00 or less.

 

 

If you are trading a spread to get your closer to the money, then you want to be sure your SOLD strike is LOWER than the expected MMM; that way, if the SPY does reach that level by expiration, you are in-the-money (ITM) and can close out the spread at full value.

 

That being said, the furthest OTM strike you should consider selling would be the 391's or lower, but still maintain the MAX spend at $3.00; making sure the spread is at least $6 wide so you can achieve the desired DoubleUP! if all goes your way.

 

The other way to adjust the strategy (once you are compounding contracts) is to do a combination of Directional and Spreads so you have some open contracts to catch any potential parabolic moves too.

 

Profits UP!

 

Frank

 

 

 

The donFranko

 

 

 

 

 

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    THURSDAY – 1/21/21 6:42 AM PST    – MORE UPDATES Stimulus-Compounder trade ideas for 1/25/21 expiration! CLOSED

 

 

Greetings Stimulus Compounder Traders!

I was profit stopped out on the rest of my Stimulus-Compounder positions.

I will be updating the spreadsheets tonight and post them to the website!

Tomorrow is the next trade idea!!

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    WEDNESDAY – 1/20/21 10:32 AM PST    – MORE UPDATES Stimulus-Compounder trade ideas for 1/25/21 expiration!

 

Greetings Stimulus Traders!

 

FYI, I just realized that if you did NOT have the equity to cover the “short” side of the initial spread trade when you opened it, then the broker will NOT let you close out half the trade; and you must remain a full spread trade until you close all of it.

That being said, if you did the spread trade, then continue to target the exit at the DoubleUP! or higher and place your profit stop at or above your purchase price.

If you also have the 386 CALLS, you should move your stop to the DoubleUP! too since that strike is currently still out of the money.

 

 

Markets are on the rise through the inauguration and the current SC trade is builidng profits and I expect the momentum to continue into the rest of the week, so I closed out the short side (Buy to Close) of my 378/385 Spread and will keep the long 378 CALLS in play with an initial stop at $5.75

 

You can keep the spread on if you prefer to have the safety net; however, I would recommend you place a profit stop at $3.50; targeting the DoubleUP! exit at a $5.10 Credit or higher.

 

  

Profits UP!

Frank

thedonFranko

 

 

 

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    FRIDAY – 1/15/21 10:30 AM PST    – NEW Stimulus-Compounder trade ideas for 1/25/21 expiration!

 

 

Greetings SC Traders!

Today is turning into a dud as there was/is no rally this morning off the Biden speech from last night and that has me a wee bit concerned buying into CALLS, so my plan is to do a Bull CALL debit spread to cut my cost down and I am definitely buying a Bear PUT Spread too for the post inauguration hedge trade.

 

Here are my trades:

 

For the SC strategy I am buying the following:

1 - 378/385 Bull CALL Spread for $2.55 Debit

1 - 387 CALL for $0.43 

This completes my MAX spend at approximately $3.00

Then I bought the optional “HEDGE” 1- Bear PUT Spread for the post inaugural trade. (You can adjust the 370 to 369 or pay the difference if you can’t get filled at this price I did)

 

I was FILLED on everything:

 The daily chart is looking very “topped out” and with multiple SGB zones you have to be on guard with wild card PUTS until the SPY gets back on the momentum trail

 

The weekly chart is still trending UP; however, we could be in for a bias change if the SPY does not hold over the 2020 close. Any drop MUST hold above the SGB zones for me to keep the CALL bias going forward.

 

 

After all, if you were listening to his speech last night, he was promising us all the milk-money-cookies, ice cream with tons of whipped cream and double the cherries on top; heck he’s even throwing in the kitchen sink. Why not , it’s not his money, it’s the “independent and respected institutions” from around the world: the “FEDERAL RESERVE (FR) and International Monetary Fund (IMF)”… HUH?? Most people actually think the “Federal Reserve” is part of the American government…Ah NOT! They are a PRIVATE cartel that PRINTS worthless FIAT and then sells it to our “elected” government to redistribute to us at compounding interest that we are involuntarily committed to pay it back with TAXES!

Here is the current stats on our DEBT OWED to the Federal Reserve and soon to be IMF.

 

 

 You are definitely going to need the Stimulus-Compounder strategy to “pay your fair share!” Heck, as you can see, we “TAX PAYERS” currently owe the FR  $222,191.00 each!!!—and they are GOING to COLLECT on that!

 

Here is the current intake from the IRS:

 

Folks, the MATH does NOT add up when you look at how much revenue the government currently collects from Citizens… especially since our rich Uncle Joe said millions of us are going to get practically $10k in “FREE MONEY” this year via PPP, EIDL, Rent / Mortgage relief, Food Stamps, Unemployment, et al.

So where is the rest coming from?

Here is what they collect from the States, Local and Corporations:

See it all at:  https://usdebtclock.org/

You can listen “carefully” to his teleprompter words (written by someone else named OZ) for yourself here:  https://www.youtube.com/watch?v=7S7rk6gypOM&ab_channel=YahooFinance  (2:00 – 2:05)

So, if he does become the President, and manages to pull off his delusions of grandeur, then we are all going to make BANK with all this alleged “FREE MONEY” coming  to us via our rich Uncle Joe! and a huge portion of that is going to get invested in the stock markets!

Then why are the markets selling off today?

Hmmm, could it be Wall Street thinks the coming helicopter money is more like cotton candy that just evaporates in your mouth? Well, after all, Uncle Joe did say he is going to MAKE the corporations and rich (that includes Wall Street) upper class PAY their “fare share” in taxes. I don’t know about you, but I have heard this BS my entire life from politicians and presidents and it NEVER seems to happen. Why? Because the Tax Code is written for the absolute BENEFIT of the wealthy and Wall Street, but always enslaves the working class!

Here is an interesting bit from George Carlin:  https://www.youtube.com/watch?v=4CRIkSpo6f4 (pardon his crude language)

Uncle Joe is gonna have to scrap the tax code, KILL Wall Streets rich uncle “SAM” if he’s getting the money from them… and that is NOT going to happen—Oh, and he said minimum wage is going up to $15.00 too... something Wall Street definitely does NOT like!

The bottom line here is INFLATION will happen in the coming years, but my strategy is here to SOS your bank accounts! The only thing you have to decide is which TAX FREE state (WA, NV, TX, WY, SD, TN, NH, FL) you are moving to so Uncle Joe can’t TAKE ALL your profits!

By the way, you may want to look into relocating to Puerto Rico, because living there, you can legally pay ZERO capital gains tax!

The Act 60 Individual Resident Investor Tax Incentive (formerly Act 22) allows you to pay 0% on all capital gains incurred during any period you qualify as a bona fide resident of Puerto Rico. To qualify as a bona fide Puerto Rican resident, you must pass three tests—the presence test, the tax home test, and the closer connection test—to prove your intention to live in Puerto Rico long term.

2021 is going to be a very interesting year and I am confident we are going to emerge financially victorious by 12/31/2021!!

 

Profits UP!

Frank

The donFranko

 

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    THURSDAY – 1/14/21 6:30 PM PST    – UPDATES for Stimulus-Compounder trade ideas for 1/19/21 expiration!

 

 

There have been some crazy moves in select stocks but the SPY has remained stagnated the entire week... even Bitcoin explodes to $42,370.00 WOW!

 

Even though this weeks trade is looking like a bust, you may recall the first SC trade was also on the ropes and came roaring back to a nice profit and tonight President elect Biden is going to announce his updated stimulus plans which could create a potential RALLY tomorrow and get us back to at least a break even. In addition to that, we have until Tuesday (since Monday is the MLK holiday and markets will be closed) to recover from this.

 

        

       

 

Even if this weeks trade goes bust by expiration, we just keep laying the next orders, because this is a 52 week journey and I fully expect to arrive in the land of 6 or 7 Figure profitability by 12-31-2021! Aside from that, if you did the first trade of 2021, then you got the DoubleUP! and this weeks trade is basically a free roll ;-).

 

REMEMBER: once you start to compound, it only takes a couple consecutive winning weeks to wipe out multiple losing weeks and crank up your trading account!

 

Tomorrow will be the next trade; however, with the coming inauguration, there may be yet another (hope not) event at the Capital and/or across the country; however, if nothing unfortunate happens (as expected), other than a peaceful transfer of political power, then we should expect a huge rally the next few trading days after the ceremony—because it means A LOT more stimulus is coming our way.

 

On the other hand, things could spiral out of control and potentially implode the markets (sure seems like that is never going to happen) and take us in a long trend down. No matter what happens, we trade the trend and adjust our bias, but for now, it is still CALLS with wild card PUTS as a hedge.

 

When I developed this strategy, the "sweet spot" was a MAX spend of $3.00 per contract; which worked out to be the perfect price to get filled every week; however, I crunched the data for 2020 and discovered you could have also got filled at $2.00, 74% of the time and $1.50, 44% of the time; both of them achieving at least a DoubleUP!. The reason I am pointing this out is so you can prepare to "layer" entry order prices each trade once you are compounding beyond 10 contracts.

 

Here is how I plan to do this for 2021:

 

I will wait until I am at 10 contract loads and then take four (4) of those contract loads and divide them into separate profit targets of: 25%, 50%, 75% and 100% and compound them individually at the 50% compound rate. For the other 6, I will focus on taking half off at the DoubleUP! and let the rest run into the expiration date looking to cash in on the parabolic moves that will come over the next 51 weeks.

There are multiple ways to compound your profits with this strategy; and each has their own risks as well as rewards; so you have to make your own plan (based on individual risk tolerance) and be sure to stick to it until you reach your desired account goals. I am an aggressive trader, and will keep pressing the pedal to the metal never stopping the compounding; however, you do not need to get there in 12-months like I am gunning for—besides, does it really matter even if it takes you 2 or 3 years to arrive in the land of 7-Figure profitability?

Have a great evening!

 

Profits UP!

 

Frank

the donFranko

 

 

 

 

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    FRIDAY – 1/8/21 12:30 PM PST    – UPDATES NEW Stimulus-Compounder trade ideas for 1/19/21 expiration!

I had to move up to the 283 strike, could not get my price on the 282’s.

 

 

    FRIDAY – 1/8/21 12:30 PM PST    –

NEW Stimulus-Compounder trade ideas for 1/19/21 expiration!

 

Greetings SC Traders!

Today’s Trade Ideas:

I am buying the 1/19/21 382 CALL for $3.00 MAX, but trying get filled for $2.50 for now.

For the optional hedge, because of the SGB’s, I bought the following Bear Put Debit Spreads as a hedge for next week.

 

What a CRAZY week with all the chaos in Washington DC yet the markets remain STRONG and LONG…I am convinced NOTHING will bring it down!

 If you held onto your trade, then you got even MORE profits today, but not to worry if you sold with me yesterday, because this strategy is a journey, and no single trade will take you to the land of 7-Figure profitability—the COMPOUNDING will!

 

 

Besides, all you have to concentrate on is getting a DoubleUP! profit each trade and you will arrive there in less than 12 months!

Ok, so now we have some interesting things on the daily chart to point out.

Today is becoming a SGB which is a proven indicator that downside movement is eminent, but if you look at the last one, we did get an initial slam down; however, it was stopped at the big zone and up we went to new all-time-highs… again!

Is three the charm? Who knows, but what I do know is something is afoot and we are still in turmoil as we approach the coming inauguration of the next president. We know that if it is indeed Biden, then the expectation of endless money printing is all but guaranteed and so will be the stimulus and continued BULLISH momentum. 

I am going to work my trades by dividing up my $3.00 MAX spend on the CALLS at $2.50 and use the other $0.50 to buy a Bear Put Debit Spread no further OTM than 10 handles.

My immediate profit target is always the DoubleUP! and if we blow by that, I will have a profit stop in place at the DoubleUP!.

 

 

Should the market implode, the first level of support is the DAILY chart SGB zones and the multi-day drop is the WEEKLY SGB zone.

 

 

Profits UP!

Frank

thedonFranko

 

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    THURSDAY – 1/7/21 9:22 AM PST   - CLOSED at the DoubleUP! for Stimulus-Compounder trade ideas for 1/11/21 Expiration!

I closed the first SC trade of 2021 at a DoubleUP!

 

 

 Tomorrow is the next trade idea!

 All we need to do now is keep this pace going, and in 16-20 trades, we have the potential to hit the first 6-Figure milestone!!

 The road to your first $100k takes:

16 winning trades at 100%

21 winning trades at 75%

30 winning trades at 50%

55 winning trades at 25%

 For 2021, my plan is to diversify the %ROI exit points noted above (after I reach 50 contract loads) and layer my exits along the way. I also plan to keep at least 10 contracts on until expiration for the occasional parabolic moves too.

 Hope to see you all with me in the land of 7-Figure profitability by the end of 2021!!!

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    THURSDAY – 1/7/21 7:39 AM PST   - DoubleUP! achieved!! MORE UPDATES for Stimulus-Compounder 1/11/21 Expiration!

We have hit the DoubleUP!

I placed my stop at the DoubleUP!

 

 

 

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    THURSDAY– 1/7/21 6:44 AM PST   - MORE UPDATES for Stimulus-Compounder 1/11/21 Expiration!

Greetings SC Traders!

 Back on the profits trail!$!

Markets are reacting in a positive momentum as President Trump announced he will accept the election results.

I moved my stop to $3.00, and will keep adjusting it up as the options move into a DoubleUP!

 

 

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    WEDNESDAY – 1/6/21 9:03 AM PST   - MORE UPDATES for Stimulus-Compounder 1/11/21 Expiration!

Greetings SC Traders!

 The roller coaster continues as the markets do NOT want to drop, no matter what news hits. The buy-the-dip mentality is still the trend, and with the Georgia election results all but confirmed, the trending news is MORE STIMULUS coming now that the Dems will control both houses of Congress (should Biden/Harris be inaugurated on the 20th) which means more money printing is coming—which is BULLISH for the markets.

The current 375 CALLS had a nice dip under $1.00; however, I did not buy anymore yesterday; and now we are back on track for a PROFIT by expiration.

We still have the wildcard event today in DC, and until we get confirmation on the electoral college results, anything can happen to change things in a very BIG way.

I have placed a $2.00 STOP on my current SC SPY trade and if taken out, I will roll that money into Friday’s trade. 

I am also fishing for an additional Bear PUT Spread (365/356) on the SPY for 1/11/21 expiration; and will decide if I am just going to buy by the end of trading today if not filled.

 

 

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   MONDAY – 1/4/21 7:30 PM PST   - 

UPDATES Stimulus-Compounder trade ideas for 1/11/21 expiration!

 

Greetings SC Traders!

 Crazy day in the markets as indexes took a nose dive for the first day of Jan 2021 trading  

As you can see on the SPY daily chart, the morning session slam down stopped right at the SGB zone; which MUST hold in my estimation to keep momentum to the upside on track.

The overall market momentum is at critical mass with a SQUEEZE already triggered for 8 (Fibonacci) days and should release energy in a VERY BIG way up or down after the presidential election is finalized.

I have my PUT spread on to cover me should markets get hammered by the end of the week, however, I think I am going to ADD to my 375 CALLS tomorrow and/or buy into a lower strike after I see how things open up; and if I get an overall DoubleUP!, then I will close out the trade and keep moving on down the road… I will update you if I do.

Anyway, each weekly trade we start every Friday stands on it’s own merits, and we do NOT concentrate on individual trades results week-to-week. The primary modus operandi is to stay FOCUSED on COMPOUNDING as soon as PROFITS allow; then let TIME build our contract loads and profits to astronomical heights over the next 12 months!$$!

Here is the current 375 CALL chart performance:

We were on our way to the first DoubleUP! from Friday’s trade, but now the 375’s are currently on the ropes.

If you did not get filled on Friday, then you may have gotten in today at a much lower price; however, the current market conditions could easily keep markets down until the outcome of the 1/6/21 electoral college congressional vote counts conclude. 

 

Even if this trade goes bust, we just keep on trading this PROVEN strategy with the overall momentum; buying into the next trade on Friday’s until the inevitable winners present themselves and ultimately ERASE all starting drawdown's as we compound in the coming months! :-)

 

 

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    THURSDAY – 12/31/20 9:58 AM PST   - 

NEW Stimulus-Compounder trade ideas for 1/11/21 expiration!

 

Greetings Traders!

Here we grrroooowwwww our accounts with the first SC trade of 2021!

I bought the following:

375 CALL that expires on 1/11/21

There are a couple of interesting things to point out with the daily chart below that we should take notice of and prepare for.

My plan is to buy the CALLS and get some wild card PUTS because this week is  the final decision for the presidency and there is going to be a massive MAGA rally in Washington DC on the 6th.

If there is some unfortunate event next week, the markets a poised to make an explosive move down based on the SGB’s and Squeeze indicator. In addition to that, the Senate is looking like they are most likely NOT going to vote on the $2k extra stimulus bill; which can stifle the markets momentum because it has already run up quite a bit in anticipation of the stimulus; and we did not get a big move in the markets when it was finally passed into law—the typical buy the rumor and sell the news didn’t happen either, so next week will definitely be interesting.

I am going to buy a couple Bear PUT Spreads for next Friday 1/8/21 expiration as a Hedge.

+360/-355 for $0.45 DEBIT

 Profits UP!

Frank

thedonFranko

 

 

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    WEDNESDAY – 12/30/20 9:00 PM PST   - 

NEW Stimulus-Compounder trade ideas for 1/11/21 expiration!

 

Greetings Traders!

 

Are you ready to make 2021 you BEST YEAR EVER!?!

 

Tomorrow is the first STIMULUS-COMPOUNDER trade and I am very excited to see how things progress in the first quarter of 2021. There is still a lot of turmoil with the elections, COVID and the economy, so be prepared for some wild swings as we get started. Also, the Jan earnings season will be starting up, and that is sure to have some impact; however, if we get similar results in the first quarter like we had in the last quarter of 2020, then we may very well be at 100 contract loads by April–which means life changing profits week-to-week.

 

Now that we have the new stimulus package confirmed and signed into law, there should be continued momentum in the markets which means we are sticking to the CALLS as the core BIAS for now and adding hedge PUTS as we begin to compound.

 

Over the weekend, I was able to review all the trades from this year, and I will be applying some adjustments now that I have the data to confirm my suspicions.

 

First off, we will still maintain the MAX spend at $3.00 on the initial trades; however, as the VIX comes down, we can also get filled at LOWER prices too. In fact, based on the data from 2020, we could have been filled for $2.00 74% of the time and at $1.50 44% of the time. That means, we can effectively "layer" our orders and begin to maximize the compounding as we build up contract loads going forward.

 

You need to remember, this is a momentum based strategy week-to-week, so once you start, you should stay in the game every week to maximize the compounding and catch the BIG moves from time-to-time—even if you have to re-invest a few times... it will be worth it a year from now!!$$$!!.

 

Besides, where else can you take a few hundred dollars and build it to 6 maybe even 7 figures in 1-2 years or less?

 

The average profits over the past 32 weeks were approximately 135%+ EVERY WINNING TRADE! and an 80% WIN RATE...WOW...and a few times we got a Moby Dick of 400% -778%!!! Therefore, we need to just concentrate on the DoubleUP! in the first few weeks, and once the compounding begins, we can sell 75% and let the rest ride.

 

For this year, as I build up the contract loads (10+), I will start implementing my other strategies like: Lotto Trades, Spreads, Hedging, Strike and Price Layering to increase profits and accelerate the journey. I will be using a portion of the profits to keep wild card PUTS in play each week up to 15 handles OTM; as this will protect the CALL trades in the event the markets implode (if they ever do) and break even if not make even MORE profits. 

 

For example, the SPY closed today is at 371.00, and when you look at a weekly chart, it has dropped as much as 20 handles in 1-2 days. So, if you were to buy some wild card PUTS 15 handles OTM with 5 days to expiration, they would cost approximately $0.17 per contract... cheap insurance!

 

 

Now if you want to go the full expiration cycle with the CALLS, then it begins to get expensive because those options are $1.18 per contract. The remedy with these is to do a $5 wide BEAR PUT spread for a $0.34 debit to lower the cost down, but maintain enough of a spread to at least break you even on the CALL trade should the markets implode by expiration.

 

 

My plan is to always invest the entire $3.00 each trade; however, I want to try and divide the money up and buy my CALL strike for $2.75 or lower and spend the remaining $0.25+ on the directional  PUTS that expire 5 days out. I want to have at least 2:1 in PUTS over my CALLS, and after I am at 10+ contract loads, then I will start doing the BEAR PUT SPREADS for the full expiration cycle too.... paid for by PROFITS.

 

Ok, so now you have to decide what compounding method you want to go with that best fits your risk tolerance level. Any one of them you choose will ultimately get you to the land of 6-Figure profitability; however, based on the first years results, the +1 each trade or 50% compounding of profits has the potential to get you there in 2-4 months.

 

FOR ME, I AM IN THE CALLS ALL-OR-NOTHING STARING WITH 1 CONTRACT AND INCREASING +1 CONTRACT EACH TRADE UNTIL I REACH 10; THEN I WILL BEGIN COMPOUNDING AT 50% UNTIL I REACH 1,000 CONTRACTS!

 

If you are just starting this strategy with a limited bankroll, then you can put in GTC orders for 1 contract at $2.00; canceling by Wednesday if not filled. Otherwise, you need to commit to the $3.00 max spend to assure you are filled each week and begin compounding after a couple of wining weeks.

 

Of course there are NO GUARANTEES this strategy will perform at the same or even similar results going forward, but all systems are GO, and we will let the trend be our friend to the end!

 

I hope all of you benefit from this awesome strategy in 2021 and build your accounts (at your pace) to new heights.

 

 

 

Profits UP!

 

Frank

The don Franko

 

 

 

 

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