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
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Stock Information Updated 12/5/21 |
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Current Trade Idea IV%: 35.36% MM +/- 15.78 VIX: 30.67
Long Term Bullish
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Trade BIAS:
STIMULUS TRADE BIAS: CALLS
HEDGE TRADE: PUTS
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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 reinvested into the next 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!
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Sunday, December 5, 2021 5:21 PM PST
Here are my SC “orders” for tomorrow: (50% ROI) — SPY 457 CALL $2.50
DO NOT follow my contract size, you must maintain your size based on your own spreadsheet and/or risk tolerances.
Greetings SC Traders! What a volatile week of trading we have had in the markets with all the FOMC, Congress and COVID news swimming around. You could not catch a break on either side of a trade with regards to a fixed strategy; therefore, I have not had many trade ideas for the Stimulus Compounder Strategy for a few weeks now. With earnings season pretty much over, and no more FOMC meetings for the rest of the year, investors are going to be placing bets for the end of 2021 trading; as well as the coming tax loss trading opportunities...translation...MORE volatility. My plan is to start placing fishing orders for the SC strategy looking to catch some more of volatility over the next three weeks. Although this year has not hit some of my goals with this strategy it is still positive overall for 2021 and I am confident that 2022 will be the year we can really get this machine going and reach those 6-Figure ProfitsUP! Trading goals we know this strategy will achieve. Here is some analysis of the current SPY charts: As you can see, there were multiple SGB's in place as the SPY was topping out, and true-to-form, the result was a massive move DOWN. This week the SPY was bouncing all around the current SGB zone at (455) and closed right at the VWAP (orange dot) indicating a potential bottom could be close. If the SPY can hold at this current SGB zone, we may have a nice run higher this week; however, if that is not the case, then I expect the SPY to fall to the next SGB zone at (434); which should intersect with the 200MA and it is widely known that 200MA becomes a magnet when markets are close to it—take notice that these two SGB zones are at Fibonacci price levels “55 and 34” which has significance in the trading world. Now that the SPY is fully entrenched in a Bear 180 (see weekly chart), I will play close attention the my "T Levels" and looking for the SPY to test T-3 as early as tomorrow, so am going to start placing my fishing orders on CALLS. Your best strike targets are always the SGB zones, so pay particular attention to them when you are adding strikes and expiration dates to your Lotto Trades. Another thing to notice is the SPY has broken through ALL previous price channels (purple lines) and now my updated ones (thicker lines), so the markets are poised to begin a trend lower, but until it clearly takes out T4 with even larger volume, I am still looking to maintain my SC strategy bias to the CALL side into 2022. As you can see on the TTM Squeeze below, the "BLACK" dots are the "early" indication of future moves, and if we see ORANGE dots, it can get very ugly for more DOWN moves on the SPY.
The weekly chart tells us a different story as we are now fully entrenched in a solid Bear 180 sell off. Take note of the two yellow boxes as this indicates we could be in for a bounce this week since the current one is identical in only two weeks of selling vs. the original one that took 4 weeks to find a bottom—keep a watch on the trading action at T-3 on the daily charts.
The TTM Squeeze on the weekly chart has started a "black" dot, but usually you need 2-3 of them to consider it a confirmation that a continuation move is immenent.
Keep your fishing orders in play and take your 50% or 100% ROI when they come. The strategy performs best over time and the compounding is what takes you to the land of 7-Figure profitability!
=================================================================================================================================================== Wednesday, December 1, 2021 2:35 PM
Updated: 12/1/21 8:00 AM PST
Greetings Traders!
Markets are very volatile this week with the FOMC chair Powell testimonies. Yesterday, he made the comment that he was removing the word "transitory" and confirmed we are in an inflationary period that was "faster" than he expected...duh <8-0.
Well, that caused a panic and the markets dropped dramatically only to be bought again and now breaking out to new all-time-highs.
With the economy on the comeback trail, and the FED getting ready to ease off the money printing machine, stocks will most likely pull back NEXT year; however, for this month the markets are looking like they just want to grind it UP into the end of the year!
I do not anticipate Powell will say anything today to upset the markets again so be ready with your fishing orders and may the rally continue!
I will have more updates later in the week.
Profits UP!
Frank The don-Franko
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Sent:
Sunday, October 31, 2021 4:35 PM
Greetings SC Traders!
The markets have been roaring higher on earnings even though two of the biggest companies in the world reported a miss??? Well, there is nothing that can take this market down (well more than a couple days) so long as the Federal Reserve has their fingers on the stimulus triggers and there looks to be no end to that anytime soon.
I was going to put out my next trade ideas on Friday when I saw the SPY starting to move below the last SGB zone; however, when AAPL would not head back to it post-earnings lows and AMZN was holding too, I decided to wait it out again and see how the markets trade as we start November.
Historically, November and December have been pretty good upside months the past few years, but with looming resurgence in the plan-demic, there could be a lot of turnover and initial panic selling again; however, if we get into another lock-down scenario, a lot of the past winners from last year like: AMZN, AAPL, ZM, COST, SHOP, AAPL, FB, NFLX, DIS, NVDA, MSFT could see another round of upside too.
Here are my SC “orders” for tomorrow:
And if the SPY falls into the SGB zone tomorrow, then I am canceling the CALLS and getting PUTS for Wed and Fri expiration down to the 455 strikes.
Here is some historical research statistics I worked on today to give us some guidance on the next two months potential upside moves:
As you can see, there was a massive +20 point upside move in the SPY last year, and with the close on Friday at a new all-time-highs, it sure looks and feels like we will just continue to melt up like it did last year at this time.
HOWEVER, when you look at the daily charts below, you can see we have a SGB that was initially resulting in a downside move, and with AAPL and AMZN missing, it was amazing to me the SPY did not get slammed even harder—Hmmmm…there is a whole lotta MANIPULATION going on in the markets!
The SPY chart has been up for 13-days, and if it falls back into the SGB zone, I am getting aggressive on short-term Lotto Trade PUTS but as long as it can hold over the current SGB zone, then I will continue with a CALL bias.
Now if we continue higher, then I am on my usual CALLS Bias with the SC strategy; maintaining my MAX Spend at $2.00 with strikes no further than 4 points OTM, but you should always FISH and try to get filled at the max spend as close to the money as possible.
Watch the daily chart on the SPY and how it reacts to the current SGB zone as I do expect a reversal down to T-3 in the near term if the SPY takes it out.
Here are more charts to show markets are ready for a possible 2018 type crash move as all of these have the SGB zone in place confirming a BIG move down is imminent!
The 2018 crash at this time started with multiple SGB’s that preceded each major drop.
The Dow Jones is looking very ominous for a 2018 style crash move if the SGB zone is breached.
Soon I will be releasing my new SUPER SPY X strategy after I have had a few more successful trades to show everyone—and let me tell you, this one is a GAME CHANGER!$$!
It has the potential to perform even better than the TGIF PAYDAY! Strategy that we are still waiting for the VIX to get back down to the 10’s before we can start it up again.
The SUPER SPY X is an aggressive day-trading strategy that is best traded with PDT margin account; however, if you do not have the $25k, then you can set up a “cash” account and still participate….the best part is you will be able to start this strategy with as little as $20.00!!!!!!
Here are my first weeks “LIVE” trading results now that I have fine-tuned the formula for catching these trades.
I run separate spreadsheets for CALLS and PUTS, and so far, PUTS are building profits and contract size, but it won’t take long for the CALLS to catch up once I connect with a couple wining trades!!
Either way, it only takes 13-15 winners to take $20.00 to as much as $100,000.00 if you have the cubes to place the orders—and believe you me, I do…lol.
Profits UP!
Frank The don-Franko
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Sent:
Friday, September 3, 2021 12:50 PM
Greetings SC Traders! My current trades:
I am going to buy some wild card 444 Sep 10 PUTS by end of day:
It has been a few weeks since I posted a trade and that was due to the lack of momentum and being it was August. I also wanted to wait for the Fed meetings to finish up as we can now focus on the last quarter of trading for 2021.
I am hoping we get some strong momentum going like last year so we can really kick into high gear with the strategy and finish up well ahead for the year.
Looking over the charts you can clearly see this week has produced another SGB and DOJI SGB at a critical price point for the SPY (455); which is a Fibonacci milestone “55”. If the SPY cannot breakout over this SGB zone we could definitely be in for some similar downside like the last one back in June.
I am still sticking with a MAX spend of $2.00 no further OTM than 4 strikes on CALLS but if we get slammed down, the SPY could easily drop 10+ in a day or two. Therefore, my bias is still CALLS but I want to have some wild card Lotto Trades on for PUTS.
Monday is a holiday so markets will be closed and then we should see some movement/momentum begin.
NOTE: Historically, September has been a “crash” month and of coure anything can happen, but with the continued support of the FED and no definite dates on tapering or rate hikes, it should remain “risk-on” for fund managers into the final quarter of 2021.
The wildcard of course is the COVID Plan-demic whch will have a major impact should a new development befall us and we get another lock-down situation.
Weekly chart SGB zones are the targets on down turns and keep counting those weeks looking for reactions at 13,21,34 intervals.
That being said, we are at 11 weeks out since clearing the last weekly SGB zone, so be mindful of aggressive moves to the higher side and prepare for a potential repeat move like the last one.
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Sent:
Monday, August 16, 2021 12:46 PM
I just closed the 443 CALLS – did not get the 100% ROI, but did get over 50% ROI on this one.
Will be looking for the next trades soon. =============================================================================================================
NO NEW TRADES TODAY – Greetings SC Traders! A really lack luster week of trading (typical for August) has keept a lid on momentum, so I was NOT filled on my fishing orders; however, the 8/16/21 443 CALLS are holding onto a small gain for now. I have a stop in at $2.20 and a profit limit at 4.20 which is my 100% ROI target for Monday.
I am NOT placing any new trades today and will see now the markets start on Monday before I put in new orders. Have a great weekend!
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Sent:
Friday, August 6, 2021 12:51 PM
Greetings SC Traders! I did not buy any trades for this past week, but I am going to BUY and FISH for next weeks trades. I BOUGHT (1) Aug 16 443 CALL for $2.06
I want to FISH for the Aug 13 440 CALLS for $2.00 with a GTC order.
Then I am going to FISH the Aug 16 440 CALL (2) for $3.00 with a GTC order.
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Sent:
Sunday, August 1, 2021 5:45 PM
Greetings SC Traders,
Unfortunately, the AMZN earnings miss collapsed the markets momentum and the trade for Friday (50% ROI) expired worthless and Monday’s (“CORE”) is in jeopardy of expiring too ☹.
Due to the current conditions, I did not place any new trades on Friday for this coming week because I want to see how the markets react for the fist day of August trading and the SGB zone.
I am watching the DAILY chart closely now that the SPY has pulled back (EXACTLY) to the SGB zone on Friday. If it falls down below the zone (at $436 or lower), I will be looking for some PUTS with Friday expiration (330 – 334 strikes); otherwise, if the SPY can hold above $436, then I will start fishing for CALLS again; however, I would not buy strikes greater than 3-handles OTM and MAX spend of $2.00 with an expiration of 8-9-21—we still have a lot of earnings comings out and that can still have impact on the overall markets trend this week.
I will email you if I place new orders in the next couple of days.
I only had a day order in for the additional 437’s and was NOT filled. Here is the chart for Fridays expiration:
Monday’s expiration 442 CALLS are on life support and hopefully we get some upside action to salvage what we can from this trade. I only had a day order in for the other 438 CALLS and was NOT filled.
The journey continues and I am hopefully the last quarter of 2021 cranks us into high gear with the compounding!
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Sent:
Friday, July 23, 2021 11:11 AM
Here are my trades for next week: 50% ROI Trade: I BOUGHT - (2) of the 30 JUL 441 CALL: (MAX SPEND $2.00)
I will be FISHING for (2) 30 JUL 437 CALL:
“CORE” 100% ROI Trade: I BOUGHT – (2) of the 2 AUG 442 CALL: (MAX SPEND $2.00)
I will be FISHING for (2) 3 AUG JUL 438 CALL:
Greetings SC Traders!!! WOW, we had a MASSIVE winning week as the SPY has completely reversed the slam-down it took and now trades, yet again, at a new all-time-highs! If you were profit stopped out this week like I was or you took the target ROI congratulations! I was trail stopped out on the 21st
Once you start to compound, you will be able to hold onto some contracts until expiration and catch more of these solid week-long moves to accelerate your journey ot the land of 6-figure profitability! JACKPOTS TODAY!
Looking over the daily chart, the SPY has once again taken out the SGB and now we have blue skies to reach for. If you are looking to place PUT orders for a hedge, then your initial strikes are 333 – 334 and you should only buy a small amount and then FISH to get filled at least 50% below the current price offered because of the pumped up IV and slippage in option pricing. As for the this weeks CALLS, I am buying half my contract loads today and fishing for a lower strike and entry price for the rest because there is a lot of IV pumped in and you do not want to overpay for all of them today.
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Sent:
Tuesday, July 20, 2021 9:16 AM
Greetings SC Traders! What a rally today!!! I was filled on half my contract load at the 50% ROI target and I have a profit stop in place at $1.60 for the other one and will let it continue all week to see how much higher it can goooooooooooo!
As for the “core” trade, it’s almost at the 100% target so I will let it continue and maybe we get a lot more this week; however, I do have a profits stop in at my 50% ROI target.
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Sent:
Monday, July 19, 2021 2:54 PM
Greetings SC Traders! WOW, the markets get slammed today! I was filled on the Jul 21 432C at $1.00 and the Jul 26 430C for $1.92
We are quite a bit OTM on these, but in range to at least get a 50% ROI, so that is what I am shooting for this week. I will be monitoring these and maybe adding a lower strike if we sell off again in the next couple of days. Remember, the sweet spot is keeping your strikes 4 or less OTM with max spends of $2.00.
As I noted multiple times in the past few weeks, the SGB’s are the KEYS to the PUT kingdom, and if you trade them when they appear, you can catch some Moby Dick Lotto trades like today turned into. The SPY has been making multiple SGB's for weeks now and the last one was the day of the FOMC Chair comments; that was also an all-time-high and could definitely be “TOP” for the rest of the year.
Also, I was watching and trading on Thursday and noticed the SPY just could not hold over 434/433; which are significant numbers (34 = Fib and 33= Free Mason) and always tend to have unusual action in price pre and post trading.
My plan is to keep fishing for PUTS strikes at or just above SGB zones on bounces until the SPY takes out that SGB at 436.
As you begin to understand how valuable SGB’s are (be sure to read the training module) you will gain confidence to stick with them and benefit when the markets/stocks get whacked—just be sure to pace yourself on contract loads (use the spreadsheet) and let the compounding take you to the land of 6-Figure profitability…no need to swing for fences on individual trades.
You may have heard, “never try to catch a falling knife”, and that is definitely true if you have no clue where bottoms are; however, as I have demontrated time and time again, you can have amazing accuracy when you buy strikes at SGB zones—if you were buying the 428 – 425 SGB zone strikes on Friday then you hit a Moby Dick Lotto Trade today!
Looking over the daily chart below, the SPY dead stopped at a SGB zone today, and if the selling continues this week, there is a very high probability of reaching that multi-triple SGB zone at 420 - 416!
Until the SPY takes out the SGB above, you should consider “fishing” for PUTS on bounces.
For the upside trades, we need to stick to 333 / 334 strikes for the wild card Lotto Trades because that is sure to be tested before we take out the SGB all-time-highs.
The weekly chart has a LOT of interesting things to point out.
Namely, the multiple SGB zones are the targets that also corresponds to my “T Levels”.
The SPY has been on a massive upward channel that has been broken and topped out “34” weeks from the last full body SGB zone last year.
If we are indeed at the “TOP” for now, then you want to pay attention to the VOLUME if the SPY reaches these lower weekly SGB zones—especially if earnings are disappointing in the next two weeks.
One final note is the FACT the FOMC is buying Bonds, Stocks and Mortgages, so there is definitely a strong level of support as the markets drop, so I do not anticipate a total melt-down; however, a healthy (needed) correction down to “T3” would give us a lot of upside opportunities in 4th quarter.
Keep your fishing orders on and I hope you catch some Moby Dick Lotto Trades as we get into earnings season!
Profits UP!
Frank The don-Franko
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NO TRADES TODAY just fishing orders:
50% ROI Trade:
FISH - (2) of the 23 JUL 432 CALL: (MAX SPEND $2.00)
“CORE” 100% ROI Trade: BOUGHT – (2) of the 26 JUL 430 CALL: (MAX SPEND $2.00)
Greetings SC Traders!
Rocky road this week with the FOMC chair hearings, comments and reactions. Plus more COVID-DELTA scares have investors taking a pause on the buying and most likely reassessing their bias for the rest of the summer.
I was not filled on my fishing orders from last week and I am again fishing for next week too.
Over the next two weeks, we will have the bigger names releasing earnings; which are sure to be market movers.
The BIAS on the SC strategy remains to the CALL side, but we are going to have to keep fishing for ATM or ITM strikes and maintain a MAX Spend at $2.00.
Now if you want to carry some hedge PUTS, that is always a separate trade from the strategy and compounded on a separate spreadsheet.
Some things to point out today are the trading ranges for the SPY this week. As you know, I pay particular attention to the Fibonacci sequence (13, 21, 34, 55) and the number “33” both of which have proven to be very useful price pivots, targets and predictable entry/exit points—couple that with SGB’s and you have the makings of some really explosive Moby Dick opportunity Lotto Trades too!
As you can see from the daily chart below, the SPY put on a SGB pre FOMC comments, and yesterday was a DOJI under it, with today being a classic bearish engulfing candle.
All signs say we are going down in a BIG way, but that will depend on the coming earnings reports, more COVID scare and big money appetite to get risk-on post earnings if they are stronger than expected.
Most years, the markets usually pause post 3rd quarter earnings results and trend sideways to lower, so we just need to be patient and place the fishing orders for the next few weeks until a trend develops and gets us cranking in the ProfitsUP!
The weekly chart shows us that SPY likes to run in 3 – 4 week increments; then takes a break for a week; so if you count the “red” weeks; we are now at the 5th (Fibonacci) sequence; and if that is the case; we could definitely be in for a nice DROP if earnings disappoint etc.
If you are looking for PUTS, then pick strikes at the daily chart SGB zones; however, if markets really get whacked, the weekly SGB zones are at 420 and sub 400.
Note: The “gold dotted” line is the 12-31-20 close and if the SPY falls way back there a lot of investors will be in the house-of-pain!
Drops come suddenly and happen with velocity, so if you want to catch a Moby Dick, then you have to be in-it-to-win-it and that take some capital commitment. If you are not able to commit extra capital to speculate at this time, just wait out the dips, apply the SC strategy and let the compounding bring you the land of 6-Figure profitability as we continue the journey!
Then you will have plenty of extra capital to catch Moby Dick Lotto Trades!
Have a great weekend!
Profits UP!
Frank thedonFranko
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FRIDAY – 6/18/21 11:15 AM PM PST – NEW Stimulus-Compounder trade ideas for 6/25/21 and 6/28/21expirations!
50% ROI Trade (NO BUYS TODAY) just fishing order:
Greetings SC Traders! I did not get filled on last weeks fishing orders, and as I suspected, the SGB zones I have been pointing out the past few weeks proved to be the SHORT opportunity as the markets were slammed this week and today was a big gap down right to the first three SGB’s zone. Take a look at the SPY daily chart below and you can clearly see how the SGB zones are the pivot points for trading action and price targets. Today is also triple witching expiration and that is the catalyst that created the gap down action today. Going forward from here, we will see if next week these SGB zones are the final test and a bottom gets put in place for the rest of the year (we be rich by December if that is the case!) or all these SGB’s are the “TOP” and we just keep diving lower and have to change the SC bias to PUTS. All the “technical” indicators the masses use are loudly proclaiming a much bigger drop is in the future, and if you take note of that triple-gap starting on 3/31/21, then you can assume those will be filled in the future; because it is widely disseminated that ALL GAPS GET FILLED eventually. So, where can the SPY ultimately drop to? For me, that answer is always in the SGB zones and the next one is around 390 on the weekly chart (noted by the dashed green lines on the daily chart) and if we end up there in the next few weeks, it will be blood-in-the-streets time for whales like Buffet to BUY BUY BUY!
What I am planning on doing is “fishing” for lower strikes and prices on CALLS looking to hook on to a Moby Dick if/when the SPY hits the GAPS and/or SGB zones below.
I also look at the WEEKLY chart SGB zones as target strikes when I trade Butterfly spreads:
Profits UP!
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FRIDAY – 6/11/21 12:20 PM PM PST – NEW Stimulus-Compounder trade ideas for 6-18-12 and 6-21-21 expiration!
Greetings SC Traders! As for the SC strategy trades this week, I am sticking to the CALL bias, but will ONLY be fishing for lower strikes with a MAX spend at $2.00 50% ROI Trade (NO BUYS TODAY) just fishing order: 18 JUN 421 CALL:
“CORE” 100% ROI Trade (NO BUYS TODAY) just fishing order: 21 JUN 421 CALL:
Here is what I did with the current 50% ROI trade and I am holding onto the “CORE” trade for Monday expiration. I closed out my 50% ROI Trade and will be looking to move that money into the next one.
The SPY just cannot get any traction and has been stuck inside a multi-SGB loaded range for a few weeks now….VERY frustrating indeed with the long bias.
Historically, I have documented that SGB’s are best shorted, but each attempt I have made since the first ones has been met with buying first, then selling second, and that makes it difficult to keep putting on the trades; however, I do know from past experience that when they work out, you get PAID way more than you spent, so I am still still buying PUTS (up to 10 handles OTM) as my wild card Lotto Trades with strikes at each SGB zone—because I know that when the drops come, price goes right to the SGB zones and I want to have strikes just above those SGB’s on the daily charts.
Profits UP!
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FRIDAY – 6/4/21 12:14 PM PM PST – NEW Stimulus-Compounder trade ideas for 6-11-12 and 6-14-21 expiration!
Greetings SC Traders!
The SPY is attempting to tag a new all-time-high today and holding over the now 5 SGB’s. There is a BIG move coming in the near future and you need to be fishing for strikes up to 10 handles OTM on PUTS and CALLS if you want to do the Lotto Trades. As for the SC 50% trades I am going with Jun 11 (423) CALL for $2.00 or lower
GTC sell order in place at $2.87
For the “core” 100% ROI trade, I am FISHING for the Jun 14 (421) CALLS at $2.00
If we get a rally on Monday, then last weeks “core” trade should make some profits so I am holding onto it.
The chart below is strongly suggesting the markets are TOPPED out; but there is just no way to really know for sure; therefore, you have to just keep placing your Lotto Trade orders and try to get in for the coming move; because it will happen so fast, you will probably not be able to react to it once you see it.
I am continuing to work the CALL side with the SC strategy and buying my Lotto Trade PUTS on strikes up to 10 handles lower. If you do not have continued capital to keep laying the Lotto Trade orders, then you can stick to the SC strategy; building your contract loads until your profits are large enough; then expand into the other strategies and maximize your profits!
Profits UP! ===============================================================================================================
TUESDAY – 6/1/21 11:27 AM PM PST – UPDATES for Stimulus-Compounder trade ideas for 6-4-12 and 6-7-21 expiration!
The SPY popped up at the open, and if you had your 50% ROI GTC sell order in place, then you should have gotten filled at the open today on the 4 JUN 421 Calls!
The “core” did not make it to 100% yet, but both trades are at a much better price today if you did not buy in on Friday; however, since the SPY failed to make new all-time-highs this morning and is looking very bearish, I would wait another day to see how the last 3-SGB’s are handled by the markets and maybe consider fishing for a lower strike too.
The daily chart is looking VERY bearish; however, getting aggressively long or short is a tough decision. I want to see a new high and then a solid retest with volume before I jump into any size on CALLS—I am still looking for some PUTS and will be placing fishing orders up to 10 handles OTM expiration-to-expiration until I see that bounce off the SGB zones.
As for the SC strategy, I am sticking with the CALL bias, but placing fishing orders at least 50% below current prices with a MAX spend of $2.00 until the SPY gets back on a consistent trajectory. Hopefully, Jun – Aug will get us back on the profits UP track so we can finish 2021 with HUGE gains!
Profits UP!
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FRIDAY – 5/28/21 12:14 PM PM PST – NEW Stimulus-Compounder trade ideas for 6-4-12 and 6-7-21 expiration!
Greetings SC Traders! Wow, this past week has been quite interesting as there has been a lot of bounce activity within the SGB zone on the SPY daily chart so I did not initiate any SC trades. Some things to point out here is the unusual trading activity I spotted yesterday. If you take a close look at the SPY daily chart, you can see the hanging man (SGB) DOJI back on 4/29/21 that started all the selling put in a “high” of $420.72. Well, yesterday, we get another SGB and the “high” was also $420.72—when you see anomalies in prices like this…they are “code speak” to insiders in my experience and I have seen some of the biggest moves in price shortly after these happen.
The weekly chart also has some interesting things going on which is why it has been very difficult to get any trades to work out with all this whipsaw volatility. The tombstone SGB DOJI from the week of 4/26/21 is being tested this week, and if it holds, then we should see new all-time-highs next week. On the other hand, if these SGB zones are the market TOP for the rest of the year, then we may see a very large implosion back down to the gap at 400-405.
These are very pronounced candlestick patterns indicating a large move is coming soon. The question is, what will that move be? Well, history has shown us that SGB’s in up trends and channels are predominantly SHORT opportunities, but you have to realize that the Federal Reserve is “buying” up the markets, so any downside action will definitely be mitigated; making it very difficult to get short trades to work out so you need to have reasonable profit targets and GTC orders waiting. All week I have been attempting to short trades with NO success; even my long trades have been lacking any real meat-on-the-profits-bone so you need to have fishing orders in at least 50% below the current price you think you should be trading at and let the volatility work in your favor with profit taking orders at 100% ROI. Going forward with the SC strategy, until I see a clean bounce off the current SGB zones, I am sticking to (1) contract loads and will lower my MAX spend to $2.00; buying strikes no further out than 2 handles from the current price—if the prices are higher than the max spend, then you place GTC fishing orders. Here are my SC trades for next week: 50% ROI trade: JUNE 4 - 421 CALL with LIMIT of $2.00 MAX or better:
“CORE” trade: JUNE 7 - 422 CALL with LIMIT of $2.00 MAX or better:
NOTE: Hedge trades are separate from the SC Strategy trades and should only be done with PROFITS; otherwise you are spending trading capital. Also, any PUTS or HEDGE trades should be compounded on a separate spreadsheet. For the “hedge” Lotto Trade PUTS I bought the following: Butterfly Spreads (Note if you have a “cash” account then you cannot do spreads ) Butterfly spreads are a cheap way to speculate a stock will fall to a certain price and can produce a large profit if the stock closes at or near your sold strike. Learn more here: https://www.investopedia.com/terms/b/butterflyspread.asp
For my wildcard PUTS I bought: JUNE 4 – 405 PUTS for $0.16
For my wild card CALLS I bought the following: JUNE4 – layered 424 – 430 CALLS
Have a great holiday weekend!
Profits UP!
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FRIDAY - 5/21/21 11:25 AM PST – UPDATES for Stimulus-Compounder Trade Ideas for 5-21-21 and 5-24-21 expirations!
Greetings SC Traders!
Markets are making me sound like a broken record with a deep scratch that just keep skipping the musical chairs of ProfitsUP and DOWN. As you can see from the daily chart below, the triple SGB zones are still keeping a lid on things; however, the SPY is attempting to test them again—AND TODAY IS SETTING UP TO BE ANOTHER SGB!
Needless to say, this YTD performance is not what I had anticipated; however, the 50% ROI Model Portfolio is still hanging in there with some profits, but the “CORE” is certainly lagging. I am confident that once we do get back on a decent trajectory, all this turmoil will fade in our memories as the profits compound us to the land of 6 and then 7 figure profitability. After all, this strategy is a 1-2 year journey; we just need to be patient; let the process work until the bumpy road ends; then we get back on track and ride the smooth-highway to financial bliss—you can rest assured, this volatility will end in the coming months!
SEE MY PUT TRADES AT THE BOTTOM OF THIS EMAIL:
With all these SGB’s I expect a very LARGE move is coming in the next few days, so we need to be ready with fishing orders.
This last weeks trades got filled, but even though I had a lower strike and price, the drop was a lot more than I anticipated. Looking back I/we could have gotten a lot lower strike and made the 50% and 100% ROI much faster on the rebound vs. the results so far ☹.
For this coming weeks trades, I will wait until Monday before I pick a CALL strike(s) and place fishing orders, but what I am going to do today is continue to buy PUTS, because if the SPY finishes as a SGB, then we could be in for a substantial DROP!
I am closing out this weeks 415 CALL now and holding onto Monday’s 415 CALL.
5-21-21 Expiration:
5-24-21 Expiation
HERE ARE MY PUT TRADE IDEAS: I am going with Wed 5/16/21 Expirations:
Profits UP!
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FRIDAY - 5/14/21 12:54 PM PST – NEW Stimulus-Compounder Trade Ideas for 5-21-21 and 5-24-21 expirations!
Greetings SC Traders! Markets took another slam-down this week as the buy-the-dip mentality was whacked hard killing all hope for a permanent recovery from the recent selling. I had the PUTS in play as I suggested in last weeks email, but you had to have diamond hands to maximize them. I started last weeks SC trades with (1) contract and had fishing orders in for the rest and I was filled on everything; however the rebound was short lived and now I am having another losing week—at least my PUTS I bought did shore up some of the loss. My BIAS will remain CALLS but I will keep buying PUTS until the triple SGB zone at 421 is taken out again and tested; however, I am dropping back to (1) CALL contract for now and only fishing for lower strikes and prices—if you want to get in cheaper, then you can do SPREADS. Here are my ORDERS…I am NOT buying in today: 50% ROI trade: MAY 21 415 CALL with LIMIT of $2.50 GTC
“CORE” trade: MAY 21 415 CALL with LIMIT of $3.00 GTC
For the PUTS I bought following:
Here is my analysis of the Daily and Weekly charts:
Lets take a closer look at the WEEKLY chart:
And finally the MONTHLY chart has some VERY interesting things to point out:
My BIAS is still PUTS with Lotto and Wild Card CALLS on all bounces until that triple SGB zone is taken out again AND tested. It has been said by Warren Buffet:
If the buy-the-dippers have been exhausted this time, then we are about to see a lot of FEAR hit the markets in MAY of 2021! Profits UP!
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FRIDAY - 5/7/21 12:24 PM PST – NEW for Stimulus-Compounder Trade Ideas for 5/14/21 - 5/17/21expirations!
Greetings SC Traders! We had a winner on last weeks 50% ROI trade early on; however, the SPY was whipsawed all week with earnings stopping me out of the final contract and then stopped me out on the “core” trade at a break even too.
As I pointed out last week when I changed my bias to PUTS, I would not go back to CALLS until I see the SPY close over $421, and that is looking like it will happen today. Even though we did get the drop I was predicting, it was short lived (for now) and today the SPY hits yet another new all-time-high…WOW…seems like NOTHING will ever crash this market. Here is last weeks 50% ROI trade chart:
Now that the SPY has taken out 421, I expect more upside can continue; however, I know from past experience that multiple SGB’s at the top of ranges and/or all time highs has proven to be VERY STRONG sell signals. That being said, I am back on CALLS, but I will have PUTS in play; with strikes down to the SGB zone at 415; because if this is the “top”, then a reversal will be quite harsh to the Bulls and I want to be there to capitalize on it—since the Federal Reserve is buying up the markets, it will most likely keep a strong bid going indefinitely; as we have just seen with this weeks reversal of the multiple SGB zones.
As for buying the CALLS today, I am a bit apprehensive to take on all my size, so for the 50% ROI trade, I will just go with (1) of my (3) and fish for the rest after I see how trading starts on Monday and for the “CORE” trade, I will NOT buy in today and just FISH for a lower price on that one too.
Here are my trades and orders: For the 50% ROI trade I bought (1) 14 MAY 21 422 CALL for $2.87 and will FISH for (2) 421 CALLS for $1.50
For the “CORE” trade, I am FISHING for (1) 17 MAY 21 422 CALL for $1.50
Profits UP! =========================================================================================================
TUESDAY - 5/4/21 7:03 AM PST – UPDATES for Stimulus-Compounder Trade Ideas for 5/7/21 and 5/11/21expirations!
Greetings SC Traders! As I suspected, those SGB’s are working out as markets are selling off so far this week and getting me filled on the 50% ROI trade!
I sold 2 of my 3 and will let the final ride with a stop at a $3.50. Holding the 5-11-21 trade for a couple of days with a stop at a break even there too.
Profits UP! =========================================================================================================
FRIDAY - 4/30/21 11:28 AM PST – UPDATES for Stimulus-Compounder Trade Ideas for 4-30-21 and 5-3-21 expirations!
Greetings SC Traders! Dang! I almost go the 50% ROI but instead the SPY just could not make the final push higher and now today’s options are all but finished so I am closing it and moving onto the next trade.
I will keep my Monday expiration trade on since it is practically wiped out and see if we get a reversal, but for now I have changed my BIAS to PUTS until the SPY takes out 421. Here is my sell trade:
Profits UP!
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FRIDAY - 4/30/21 11:28 AM PST – NEW Stimulus-Compounder Trade Ideas for 5-7-21 and 5-11-21 expirations!
Greetings SC Traders!
A lack luster week of SPY trading even with super strong earnings reports and a postitive FOMC just could not get it to break out. Instead, we get lack luster performance, and this weeks trade is about to end in a major disappointment. Yesterday, the 417 CALLS almost made it to my 50% ROI profit order but now I have to take what I can get and set up the next trades in this journey.
I am holding onto the other CALLS until Monday expiration just in case we get a surprise reversal. I am going to buy PUTS this week because the markets are showing signs of a blow off top with a classic Hanging Man DOJI which happens to also be a SGB DOJI; and it appears to be closing the week right at the last SGB DOJI back on 4/16/21. Until we take out 421 on the SPY, my bias is now shifted to PUTS. Here are my Trades for this coming week:
I bought the 7 MAY 417 PUTS for $2.98 with initial profit target of 50% ROI but I will layer my exits if the markets get slammed next week. I bought the 10 MAY 416 PUTS for $2.86 with initial profit target of 100% ROI or higher.
Have a great weekend! Profits UP! ==================================================================================================================================
MONDAY – 4/26/21 1:00 PM PST – UPDATES for Stimulus-Compounder trade ideas for 4/26/21 expiration!
Greetings SC Traders! The SPY came back from a total bust giving me some money back on the 4-26-21 417 CALLS, so I took what I could get and will move on as we head down that 7-Figure road!
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FRIDAY – 4/23/21 12:10 PM PST – MORE UPDATES for Stimulus-Compounder trade ideas for 4/23/21 and 4/26/21 expirations!
Greetings SC Traders! Today's (50% ROI) trade came back to a little bit of life as we head into the final hour of trading, so I am taking what I can get now and moving this money into the next one.
Monday’s is also coming back to life, so I am leaving it on until expiration, and hopefully, I/we get at least a break even.
Profits UP!
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FRIDAY – 4/23/21 12:06 PM PST – NEW Stimulus-Compounder trade ideas for 4/30/21 and 5/3/21 expirations!
Greetings SC Traders! This last weeks trades are actually coming back life and maybe Monday’s expiration will even break even. However, today’s will expire so I am salvaging what is left and rolling that money into the next one. I have to lower the contract load to (3) and build back up before continuing the compound. I have some concern with that DOJI candle from last Friday and the whipsaw action all week, so I will be adding some HEDGE PUTS (optional trade) just in case we get a massive reversal. Overall, the trend is still our friend until the end and that means we stick to the CALL side of trading this strategy. Here are my trades for next week: I bought (1) 3 MAY 418 CALL for: 2.61 (MAX is $3.00)
Initial target is a DoubleUP!
50% ROI Trade I bought (3) 30 APR 417 CALLS for $2.82 (MAX $3.00)
I am going to start layering my exits by keeping 1 contract on beyond the 50% ROI target—and this time letting it go all the way to expiration! NOTE: If you cannot get my strikes, you can move up 1 or down 1 depending on prices, but NEVER spend more than $3.00 Max for your strikes! The DAILY chart is indicating a potential reversal setup; however, next weeks earnings reports are definitley going to have some effect as they come out. I am going to have some PUT SPREADS in place and see how earnings effect the trend before I add more.
For my SC HEDGE, I went with the following trade: 5 MAY 415/410 Bear PUT Spread for a DEBIT of $1.12 (MAX PROFIT is $10.00 Credit or 793% ROI if SPY is at or below 410 by expiration)
NOTE: Hedge trades are separate from the BIAS and should only be done with PROFITS from the CALL trades; otherwise you are spending trading capital. Also, any PUTS or HEDGE trades should be compounded on a separate spreadsheet.
Profits UP! Frank thedonFranko ========================================================================================================================= MORE UPDATES for Stimulus-Compounder Trade Ideas for 4-23-21 and 4-26-21 expirations! Greetings SC Traders! Today's (50% ROI) trade came back to a little bit of life as we head into the final hour of trading, so I am taking what I can get now and moving this money into the next one.
Monday’s is also coming back to life, so I am leaving it on until expiration, and hopefully, I/we get at least a break even.
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TUESDAY – 4/20/21 9:29 AM PST – NEW Stimulus-Compounder trade ideas for 4/23/21 and 4/26/21 expirations!
Greetings SC Traders!
Well, this week is turning out to be a bummer as the markets have been in selling mode and killing our current trades. I think the current selling is influenced by the upcoming verdict of the George Floyd / Chauvin trial, and if the expected outcome does not happen, there could be a lot of civil unrest coming—which distracts the investing world (temporarily). The SPY has been on a massive upward trajectory for 16 days, and was certainly due for a pull back; however, we are trading a strategy with a CALL bias, so it is expected to have a few bumps in the road as we continue the journey.
If you are just starting out, you need to stick to the plan because the winning weeks (along with compounding) will wipe out any and ALL losing weeks!
If you are thinking about getting “revenge” on a losing trade, that is ALWAYS a bad idea; however, we can be proactive and wait for opportunity trades based on solid technical parameters. Therefore, I am treating this pull-back as a Level 1 Bear 180 setup, and will look to add a new trades at T2 and T3; otherwise, I will take the hit on the current trade and keep moving down the road to the land of 6-Figure profitability by the end of 2021! If I add to or start a new trade, I will send out updates when I do.
Profits UP!
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FRIDAY – 4/16/21 11:50 AM PST – NEW Stimulus-Compounder trade ideas for 4/23/21 and 4/26/21 expirations!
CORRECTIONS! I meant to put 417 CALL for the suggested strike price; however, the trade confirmation does show the correct strike. Note: If you cannot get my exact strike, you can move up or down one; whichever is at the MAX spend of $3.00 or lower.
Greetings SC Traders! We had another winning week in both model portfolios! I was stopped out on Tuesday for a full profit on the 50% ROI, and a small gain on the “CORE”; however, if you were still in yours, then you got well over a 100% ROI there too! For me, I have to follow the rules of the strategy for educational purposes, and although I do NOT recommend you try to maximize any single trade, I do suggest you layer your exits once you are compounding! As for getting stopped out early, it was still a profit and you can’t go broke taking profits. Ok, so with the markets continue to grind higher and we just need to keep on the same trajectory with our CALL bias and let the momentum drive us down the road to the land of 6-Figure profitability! Here are my trades for next week:
I bought (1) 26 APR 417 CALL for: 2.99 (MAX is $3.00)
Initial target is a DoubleUP! ======================================================================= 50% ROI Trade I bought (5) 23 APR 417 CALLS for $2.59 (MAX $3.00)
I am going to start layering my exits by keeping 1 contract on beyond the 50% ROI target and this time letting it go all the way to expiration!
NOTE: If you cannot get my strikes, you can move up 1 or down 1 depending on prices, but NEVER spend more than $3.00 Max for your strikes! Here are last weeks trade idea charts:
Profits UP! Frank thedonFranko
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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 Coin base (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! ===============================================================================================================
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! ======================================================================= 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 $$$ too! This weeks 50% ROI trade is compounding to (3) contracts so that means your total spend would be $900.00 at the MAX $3.00. How you use that money is up to you and with the markets continuing to rise, there is always the possibility of reversal; however, we are on the BULL trend which is our friend until the end! With the VIX trading down today, the option prices are “CHEAP”, so we can actually get an ATM strike for LESS than the $3.00 MAX spend!!
Here are my next trades for the Model Portfolio Stimulus-Compounder strategy: I bought (1) 12 APR 400 CALL for: 2.70 (MAX is $3.00)
Initial target is a DoubleUP! =============================================================================================== 50% ROI Trade I bought (3) 09 APR 399 CALLS for: $2.89 (MAX is $3.00)
You should have a GTC order in to sell these for $4.35
Wishing you a nice holiday weekend and Happy Easter!
Profits UP!
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FRIDAY – 3/26/21 1:23 PM PST – NEW Stimulus-Compounder trade ideas for 4/1-21 and 4/5/21expirations!
WOW…I was already filled on my 1 APR 392.50 CALLS and got a 61% PROFITS UP!!!!
If you are still in yours, then you may get a very nice gain on Monday if markets continue this momentum!$$!
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!
================================================================================== 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.
============================================================================= 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! ============================================================================================================================================================
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!! ================================================================================================================================================ 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
=================================================================================================================================== 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 383 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
=========================================================================================================================== 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 $100k takes: 16 winning trades at 100% 21 winning trades at 75% 30 winning trades at 50% 55 winning trades at 25% For 2021, my plan is to diversify the %ROI exit points noted above (after I reach 50 contract loads) and layer my exits along the way. I also plan to keep at least 10 contracts on until expiration for the occasional parabolic moves too. Hope to see you all with me in the land of 7-Figure profitability by the end of 2021!!! =========================================================================================== THURSDAY – 1/7/21 7:39 AM PST - DoubleUP! achieved!! MORE UPDATES for Stimulus-Compounder 1/11/21 Expiration! We have hit the DoubleUP! I placed my stop at the DoubleUP!
======================================================================================================== THURSDAY– 1/7/21 6:44 AM PST - MORE UPDATES for Stimulus-Compounder 1/11/21 Expiration! Greetings SC Traders! Back on the profits trail!$! 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! 
======================================================================================================== 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.
======================================================================================================== 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! :-)
===================================================================================================================================== 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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