from the desk of Dr. Terry F Allen

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Welcome Visitor From Global AutoTrading

Terry’s Tips has been in business for 19 years tweaking a strategy consisting of calendar and diagonal spreads which benefits from the higher decay numbers of the short (usually weekly) options.  We carry out 5 separate portfolios each of which uses a different underlying (currently COST, HD, IBM, MSFT, and TGT).

Our $97 monthly subscription fee covers all 5 portfolios. Sign on at https://www.terrystips.com/programs-and-pricing 

These portfolios have made 100%+ average annual gains in 2017 and 2019, and 3 of them have doubled in value in the first six months of 2020.

Portfolio Performance Through 10/17/20

Portfolios

The "Current Value" column shows how much cash is need to Auto-Trade each portfolio.                            
Notes: Boomers Revenge and Honey Badger Started 2020 with different underlyings and later switched to the current ones.                            
Earnings Eagle withdrew the starting amount in May when the value had doubled. Rising Tide withdrew the starting amount twice, once in May & July, when the value had doubled.

A subscription to Terry’s Tips includes a weekly Saturday Report which summarizes and discusses all the current positions of each portfolio, and displays a risk profile graph of the likely profit or loss in the coming week for each portfolio.  A sample 6/20/20 portfolio report looks like this:

Summary of Wiley Wolf Portfolio This portfolio uses the 10K Strategy with MSFT as the underlying. The portfolio gained 120% in 2019 trading weekly options on MSFT.  In 2020, we converted to selling monthlies instead of weeklies because we consider having 5-8 months of life to our long positions to be more conservative.

Wiley Wolf portfolio summary

Results for the week: With MSFT (at $195.15) up $7.41 (3.9%) for the week, the portfolio gained $1,883, or 7.6%.  This is an unusually large gain considering MSFT rose so much. Most of the time, we do better when the fluctuation is more moderate (in either direction). A good part of this gain was due to IV gaining this week.  A week ago, the least-expensive (the at-the-money strike) one-week straddle would cost $5.58.  At yesterday’s closing prices, this straddle would cost $6.85.  The straddle cost is a good proxy for IV of underlying.  By this measure, for MSFT, IV rose 23% and the portfolio showed a large gain.  For COST, on the other hand, IV for the week fell by 23% and the Rising Tide portfolio lost value this week.

Next week, our short one-month options will expire.  The risk profile graph shows an unusually high possible gain with a flat or moderately higher stock price.  If IV continues at the same level, we have a chance for the portfolio to enjoy a gain of 200% for the year to date.  Wouldn’t that be exciting?

MSFT stock options balanced graph

You can become a subscriber and receive a copy of the most recent issue of the Saturday Report here - https://www.terrystips.com/programs-and-pricing

It could be the smartest investment decision you make this year.

If you have any questions about us or our strategies, please write to me at Terry@TerrysTips.com

Happy trading,

 

Terry

Terry's Tips Stock Options Trading Blog

October 19, 2020

Can ADBE (ABDE) Hold Above the $500 Price Point?

After correcting lower last month, ADBE is starting to once again show signs of upward momentum. The stock has posted a series of higher highs and higher lows over the last four weeks as it oscillates higher in a rising trend channel.

October 12, 2020

Lowe’s (LOW) Boosted by Rise in Home Improvement Spending

From a technical standpoint, LOW has broken higher from an ascending triangle which is a bullish continuation pattern. Support for near-term dips falls at $170.50 which marks the top of the triangle.

October 5, 2020

DR Horton (DHI) Powers to Record High

DHI has posted gains in the last six straight months and shows renewed upward momentum after breaking above the August top.

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.

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Sign Up Your 2 Free Reports & Our Newsletter Now!

Sign up for Dr. Terry F Allen’s free newsletter and get immediate access to his most current report on his stock option trading strategies.

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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235 Primrose Lane, Ferrisburgh, VT 05456

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