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Terry's Tips Stock Options Trading Blog

What Can Be Learned From Successful Option Strategies

March 21st, 2017

Today I would like to share some thoughts I sent out on Saturday to paying subscribers at Terry’s Tips. These thoughts reflected on the recent successes of the nine actual options portfolios we carry out and comment on each week. By the way, all nine portfolios are profitable for 2017 and the composite average gain is currently 28.9% since the beginning of the year. Last week while the market (SPY) fell 0.3%, our portfolios gained an average of 3.2% for the week, demonstrating that we don’t have to rely on a rising market to enjoy portfolio gains.

Terry

What Can Be Learned From Successful Option Strategies

If we can identify the strategies that resulted in the extraordinary returns we have enjoyed in the first quarter, maybe we can use those strategies for other underlying stocks or ETPs and time periods.

First, we must admit that we had some good luck. Anyone who makes these kinds of returns must admit that some of it was based on pure luck. Anyone who follows the mutual fund industry knows this intimately. Every year, millions of . . .

Options Which Trade After Hours (Until 4:15)

March 15th, 2017

First, I would like to report that the 9 actual option portfolios carried out at Terry’s Tips have gained a composite 24.9% so far in 2017. It has been a good year so far for the market, but it (i.e., SPY) is up only 5.2%, so we have done 4+ times better. Maybe it would be a good time for you to take a peek at the exact positions and strategies we are using to ring up these kinds of gains.

I noticed that the value of some of our portfolios was changing after the market for the underlying stock had closed. Clearly, the value of the options was changing after the 4:00 EST close of trading. I did a Google search to find a list of options that traded after hours, and came up pretty empty. But now I have found the list, and will share it with you just in case you want to play for an extra 15 minutes after the close of trading each day.

Terry

Options Which Trade After Hours (Until 4:15)

Since option values are derived from the price of the underlying stock or ETP (Exchange Traded Product), once the underlying stops trading, there should be no reason for options to continue trading. However, more and more underlyings are now being traded in after-hours, and for a very few, the options continue trading as well, at least until 4:15 EST.

Options for the following symbols trade an extra 15 minutes after the close of trading – DBA, DBB, DBC, DBO, DIA, EFA, EEM, GAZ, IWM, IWN, IWO, IWV, JJC, KBE, KRE, MDY, MLPN, MOO, NDX, OEF, OIL, QQQ, SLX, SPY, SVXY, UNG, UUP, UVXY, VIIX, VIXY, VXX, VXZ, XHB, XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY, XME, XRT.

Most of these symbols are . . .

How to Make 40% in 45 Days With a Bet on Ford

March 13th, 2017

Last week I suggested a bearish spread on Tesla that would make 67% in 49 days. The stock has fallen about $7 since then, and the spread that I placed has already picked up 30% in a single week. I am tempted to close it out and take the profit, but I think I will wait it out and happily collect the entire 67% in six weeks.

Today I am reporting on a spread I placed on Ford (F) on Friday when the stock was trading at $12.54.

Terry

How to Make 40% in 45 Days With a Bet on Ford

Several articles have been published lately which are bullish on Ford, including Ford and Its 4.8% Dividend Yield, and Ford: Break-Out Ahead

On Friday, when F was trading at $12.54, I made a . . .

How to Make 27% in 45 Days With a Bet on Tesla

March 5th, 2017

The 9 actual portfolios carried out by Terry’s Tips are having a great 2017 so far. Their composite value has increased 23.8% for the year, about 4 times as great as the overall market (SPY) has advanced.

The basic strategy employed by most of these portfolios is to bet on what the company won’t do rather than what it will do. Most of the time, that involves picking a blue chip company that you really like, especially one paying a large dividend, and betting that it won’t fall by very much. You don’t care if it goes up or stays flat. You just don’t want it to fall more than a few points while you hold your option positions.

Today, I would like to offer a different kind of a bet based on what a popular company might not do. The company is Tesla (TSLA), and what we think it will not do is to move much higher than it is right now, at least for the next few months.

Terry

How to Make 27% in 45 Days With a Bet on Tesla

Tesla is a company which has thousands of passionate supporters. They have bid up the . . .

How to Make 50% in 5 Months With Options on Celgene

March 2nd, 2017

One of my favorite option plays is to pick a company I like (or one that several people I respect like) and place a bet that it will at least stay flat for the next few months. Actually, most of the time, I can find a spread that will make a great gain even if the stock falls by a few dollars while I hold the spread.

Today, I would like to share an investment we placed in a Terry’s Tips portfolio just yesterday. By the way, this portfolio has similar spreads in four other companies we like, and it has gained over 20% in the first two months of 2017. We have already closed out two spreads early and reinvested the cash in new plays. The portfolio is on target to make over 100% for the year (and it is available for Auto-Trade at thinkorswim for anyone not interested in placing the trades themselves).

Terry

How to Make 50% in 5 Months With Options on Celgene

Not only is CELG on many analysts’ “Top Picks for 2017” list, but several recent Seeking Alpha contributors have extolled the company’s business and future. One article said “Few large-cap biotech concerns have a clearer earnings and revenue growth trajectory over the next 3-5 years than Celgene.”

Using Investors Business Daily to Create an Options Strategy

February 20th, 2017

Today I would like to share an idea that we are using in one of our Terry’s Tips’ portfolios. We started this portfolio on January 4, 2017, and in its first six weeks, the portfolio has gained 30% after commissions. That works out to about 250% for the whole year if we can maintain that average gain (we probably can’t keep it up, but it sure is a good start, and a positive endorsement for the basic idea).

Terry

Using Investors Business Daily to Create an Options Strategy

IBD publishes a list which it calls its Top 50. It consists of companies which have a positive momentum. Our idea is to check this list for companies that we particularly like for fundamental reasons besides the momentum factor. Once we have picked a few favorites, we make a bet using options that will make a nice gain if the stock stays at least flat for the next 45 – 60 days. In most cases, the stock can actually fall a little bit and we will still make our maximum gain.

The first 4 companies we selected from IBD’s Top50 list were . . .

An Update on Our Last Trade and a New One on AAPL

February 5th, 2017

About a month ago, I suggested an options spread on Aetna (AET) that made a profit of 23% after commissions in two weeks. It worked out as we had hoped. Then, two weeks ago, I suggested another play on AET which would make 40% in two weeks (ending last Friday) if AET ended up at any price between $113 and $131. The stock ended up at $122.50 on Friday, and those of us who made this trade are celebrating out 40% victory. (See the last blog post for the details on this trade.)

Today, I am suggesting a similar trade on Apple (AAPL). It offers a lower potential gain, but the stock can fall in price by about $9 and the gain will still come your way.

Terry

An Update on Our Last Trade and a New One on AAPL

This trade on APPL will only yield about 30% after commissions, and you have to wait six months to get it, but the stock can fall over $8 during that time, and you would still make your 30%.

Another Interesting Short-Term Play on Aetna (AET)

January 20th, 2017

Ten days ago, I sent you a note showing how you could make 23% on an options spread on Aetna (AET) if the stock closed at any price above $118 today. Back then, it was trading at $122.67. The day is not yet over right now, but AET is trading at $122 with an hour to go until closing, so it seems safe to say that the 23% will be enjoyed by everyone who placed the trade.

Today, I would like to suggest another trade on AET that will end two weeks from today. It will make 40% on . . .

An Interesting Short-Term Play on Aetna (AET)

January 11th, 2017

We are always on the lookout for unusual option prices that might indicate a better-than-usual investment opportunity. I would like to share one of those recent opportunities with you, one I personally acted on and passed on to Terry’s Tips subscribers last Saturday. It involves the venerable insurance company, Aetna.

Terry

An Interesting Short-Term Play on Aetna (AET)

This week, we are looking at Aetna (AET), a health care benefits company. If you check out its chart, you can see that it does not historically make big moves in either direction, especially down:

How to Make 30% on 5 Blue-Chip Companies in 2017 Even if They Fall by 10%

January 3rd, 2017

Today, we set up a new portfolio at Terry’s Tips that I would like to tell you about. It is our most conservative of 9 portfolios. It consists of selecting 5 blue-chip companies which pay a dividend between 2% and 3.6% and which appear on at least two top analysts’ “top 10” lists for 2017. This portfolio is designed to gain 30% for the year, and we can know in advance exactly what each of the 5 spreads will make in advance. For most of these companies, they can fall by 10% over the course of the year and we will still make our 30% gain.

We are also repeating our best-ever offer to come on board before January 11 rolls around.

Terry

How to Make 30% on 5 Blue-Chip Companies in 2017 Even if They Fall by 10%

The spreads we are talking about are vertical put credit spreads. Once you have found a company you like, you select a strike price which

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Success Stories

I have been trading the equity markets with many different strategies for over 40 years. Terry Allen's strategies have been the most consistent money makers for me. I used them during the 2008 melt-down, to earn over 50% annualized return, while all my neighbors were crying about their losses.

~ John Collins