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Can your strategies be used in an IRA account?

Yes, all the portfolios we maintain may be traded in an IRA account through many brokers.

Do your portfolios trade on margin?

No. The portfolios we maintain do not require the use of margin.

What is the minimum amount required to trade?

If you plan to mirror one of our portfolios (or sign up for Auto-Trade with thinkorswim), the minimum amount varies between $2000 and $10,000 depending on which portfolio you choose and its current value.

Under what type of market conditions do your strategies work?

The majority of our portfolios are designed to make a profit in a flat or up market.

Do your strategies make money in down markets?

One of our portfolios, the 10K Bear, was set up to provide protection in case of a lower market. It is designed to make money in a flat or down market. The other portfolios are designed to make money when the market stays flat or moves up slightly.

Do you have a strategy that allows for monthly profit-taking?

Cash withdrawals will be made from most portfolios in increments of 3% of starting portfolio value. For example, for a portfolio with a starting value of $10,000, on the Monday following each monthly expiration, $300 will be taken out of the account if the account balance is over $10,300. If a gain of over $600 is made in a month and the portfolio balance is over $10,600, $600 will be removed that month. The goal is to remove $3600 from the account over the course of a year and continue to maintain the $10,000 starting value.

Where can I find a listing of your current positions?

The latest positions for each portfolio are reported each week in the Saturday Report, which may be found on our Insiders page.

Will I receive notifications when you place trades in your portfolios?

Our Basic and Premium members receive notification of all trades made in any of our current portfolios at the end of the day. Premium members also may opt to receive real time alerts for the portfolio(s) of their choice.

How many trade do you place each week/month?

This varies based on the portfolio, the movement of the underlying stock/index, and the time of the month. Most trades are made during expiration week, though trades are also placed whenever they are called for by our trading and adjustment rules.

Do you use puts or calls in your portfolios?

We use both puts and calls in our portfolios. Some portfolios are set up to use either puts or calls exclusively, while others involve the use of both puts and calls.

How risky are your strategies?

Options are leveraged investments and involve a higher degree of risk than most conventional investments (otherwise, the high returns that we have enjoyed would not be possible). However, since all of our strategies involve being both long and short options concurrently, we have some protection against the market moving in either direction, and since our long positions always have a longer life span than our short options, there will always be a residual value in our portfolios no matter what the market does (i.e., it is not possible to lose the entire amount invested as long as you are mirroring one of the Terry's Tips portfolios). 

How do you manage risk?

We have a well-defined set of Trading Rules to manage risk. In addition, each week in the Saturday Report, we publish a graph that shows the loss or gain that will result in each portfolio at the next expiration at a large range of possible underlying stock prices so that subscribers can visually see the risk profile of each portfolio on an ongoing basis.

Terry's Tips Stock Options Trading Blog

June 17, 2019

The Trade Desk (TTD) Has Doubled in Value YTD

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Terry

The Trade Desk (TTD) Has Doubled in Value YTD

TTD has had an impressing rally in the year thus far, and these two analysts think it can continue the upward moment

June 9, 2019

Has the Tide Turned for Five Below Inc (FIVE)?

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Terry

Has the Tide Turned for Five Below Inc (FIVE)?

Several analysts are looking for more upside in FIVE, here are two of them – Hedge Funds Have Never Been This Bullish On Five Below Inc and I’m Sorry, But the Five Below Stock Selloff Is Overdone.

FIVE fell under a little bit of pressure after reporting earnings in the past week. However, the stock recovered on Friday, resulting in a bullish engulfing candle. This pattern often signals a reversal but what makes it even more significant is that the pattern occurred following a test of important support. Specifically, from the 200-day moving average and the lower bound of a trend channel. A second reversal candlestick is seen on a weekly chart that makes an even strong case that FIVE might turn higher from here.

If you agree there's further upside ahead for FIVE, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open FIVE 12JUL19 124 Puts (FIVE190712P124)
Sell To Open FIVE 12JUL19 127 Puts (FIVE190712P127) for a credit of $1.33 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when FIVE was trading near $127.50.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $130.50 and your broker would charge a $300 maintenance fee, making your investment $169.50 ($300 – $130.50).  If FIVE closes at any price above $127 on July 12, both options would expire worthless, and your return on the spread would be 77% (878% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

June 4, 2019

Amazon (AMZN) Is Testing a Major Technical Support Area, Is It Time to Buy?

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Terry

Amazon (AMZN) Is Testing a Major Technical Support Area, Is It Time to Buy?

Some analysts did a double take this past week when a Piper Jaffray analyst said AMZN could reach $3000. Granted, his views are over a few years, but the article stands to spark some buying interest.  Take a look at the following article for full details – Can Amazon Really Reach $3000? You Bet.  Also take a look at this article which discusses an upside target from another analyst, and contains a video of Yahoo staff discussing the Piper Jaffray call – Amazon Stock Poised for Continued Growth; Here’s Why.

As indicated by the headline, Amazon is seen testing a significant support area.  Specifically, there are three items that are lined up to create a confluence – The 100-day moving average, 200-day moving average, and a horizontal level.  It’s quite rare to have all three lined up pretty much perfectly at the same price point and probabilities favor that buyers will be there to defend it.

If you agree there's further upside ahead for AMZN, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open AMZN 5JUL19 1770 Puts (AMZN190705P1770)
Sell To Open AMZN 5JUL19 1775 Puts (AMZN190705P1775) for a credit of $2.25 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when AMZN was trading near $1775.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $222.50 and your broker would charge a $500 maintenance fee, making your investment $277.50 ($500 – $222.50).  If AMZN closes at any price above $1775 on July 5, both options would expire worthless, and your return on the spread would be 80% (913% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Making 36%

Making 36% – A Duffer's Guide to Breaking Par in the Market Every Year in Good Years and Bad

This book may not improve your golf game, but it might change your financial situation so that you will have more time for the greens and fairways (and sometimes the woods).

Learn why Dr. Allen believes that the 10K Strategy is less risky than owning stocks or mutual funds, and why it is especially appropriate for your IRA.

Order Now

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TD Ameritrade

This Chicago brokerage firm with the unlikely name thinkorswim, Inc. by TD Ameritrade is considered by many to be the best option-friendly broker. For openers, they have extremely good analytic software and their option trading platform is exceptional. Thinkorswim Mobile has been called the best mobile app in the industry. In 2017, TD Ameritrade received 4 stars out of 5 in the annual Barron`s* Best Online Brokers Survey. TD Ameritrade was tops as an online broker for long-term investors and for novices. The company is the only broker that receives the highest 5.0 score for research amenities among all firms participated in the ranking last year.

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TD Ameritrade, Inc. and Terry's Tips are separate, unaffiliated companies and are not responsible for each other’s services and products.

Options are not suitable for all investors as the special risks inherent to options trading my expose investors to potentially rapid and substantial losses. Please read Characteristics and Risks of Standardized Options before investing in options

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