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Tip 8 - Other Stock Option Resources


thinkorswim by TD Ameritrade

thinkorswim by TD Ameritrade (thinkorswim) - Online broker specializing in stock options – Excellent software-based Options platform. Our choice as the absolute best broker for option trading.
Chicago, IL (866) 839-1100

This Chicago brokerage firm with the unlikely name thinkorswim, Inc. by TD Ameritrade is our clear choice as the best of all option-friendly brokers. For openers, they have absolutely the best software. For several years, I paid over $250 a month for a service delivering real-time complete (bid-asked prices, sizes, volume, Greeks, etc.) options chain screens – it comes free at thinkorswim by TD Ameritrade, along with dozens of other software programs for the serious option trader. Even more important, our experience has shown that thinkorswim by TD Ameritrade achieves consistently better spread executions than any other broker we could find – these could save an active trader thousands of dollars each year. You may select any of several commission schedules which are equal to (or lower) than the rates charged at OptionsXpress (and other discount option brokers). But perhaps the biggest reason of all to choose thinkorswim by TD Ameritrade is their superior level of personal service – you can always talk to a real person, and there is no extra charge for orders placed on the phone. I believe that there is no good reason to choose any other broker for option trading than thinkorswim by TD Ameritrade. I am not the only person who feels this way - Barron's* ranked thinkorswim by TD Ameritrade as the #1 web-based online broker in 2006 and 2007.

*thinkorswim by TD Ameritrade firm was evaluated versus others in eight total categories including investment types that can be traded, the quality of screeners provided to sort through stocks, options, or funds, the consumer-friendliness of trading screens, overall ease-of-use and ability to be customized. thinkorswim topped the list with the highest weighted average score.

thinkorswim Disclaimer:  thinkorswim, Division of TD AMERITRADE, Inc. and Terry's Tips, Inc. are separate, unaffiliated companies and are not responsible for each other's services and products.


Options Graphing Software

Terrys Tips Stock Options and Trading Report

There are many options graphing software packages out there, most of which do far more than the average investor would ever need. Of course, they cost too much as well. I have found one package that I absolutely love. It does everything I want (and lots more), and is very inexpensive. Most of all, it's easy to use. What I like best about it is that once you enter your positions, you click an update button, and the current market prices are looked up for you, and the graph updated.

Each week, for each of our portfolios, I create a Risk Profile Graph like this:

risk profile

(Note:  This graph was created on July 25, 2009 when the Boomer’s Revenge portfolio was worth about $9,500 and the stock, SPY, was trading at $99.)

This graph lets me know what profit or loss will result from my current positions at the next expiration at each stock price. I can see that the portfolio will make about a 15% profit in a single month if the stock lands anywhere between $100 and $104 in four weeks and there will be a gain at any SPY price between $94 and $108, a range of 14 points. The graph gives me a visual reading on my risk at different stock price scenarios, and helps me decide if I should make an adjustment. Of course, I can enter the several different possible adjustments and examine the graph with those new positions before I make the actual trades.

You can purchase the Excel Option Calculator software here. It was written by a smart young man who lives in Argentina. The price is only $57.90. If you enter the Discount Code TT36, he will take off $5.00 for people who found this software through Terry’s Tips .  With this code, your net cost will be only $52.90.  I recommend it highly, and use it every day myself.

Traders Accounting

Highly recommended tax experts specializing in online trading – well versed in options

Bellevue, Washington
(800) 938-9513
Click here for Traders Accounting (Discounts for Terry's Tips Customers)

Traders Accounting comes highly recommended from many folks, including Terry’s Tips subscribers. They provide tax consulting, entity formation and 401(k) services that help you efficiently establish and maintain your trading business. Terry’s Tips customers receive $75.00 off their Tax Secrets for Traders: Home Study Course as well as discounts on other services.

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

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

Here is what the book looks like (but the good stuff is inside):

The book was originally published at $19.95. You will receive an electronic version so you can start right away, and the paperback version will be mailed to you free of shipping and handling charges. Order it today at (Enter the discount code TEE and your cost will be only $12.94, including shipping by First Class mail).

This could be the best investment decision you ever make. At least, you won't be risking much to learn the strategy. And it could change your investment outlook for a lifetime. Total cost, including shipping only $12.94 - (Enter the discount code TEE).

CBOE – Chicago Board Options Exchange

Best of all educational resources for stock options

Complete education program, list of option symbols, LEAPS, volatilities, Black-Scholes calculation module, everything you could ever need for learning about stock options. Create your own home page. Everything's free!

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Terry's Tips Stock Options Trading Blog

October 18, 2016

Halloween Special – Lowest Subscription Price Ever

Halloween Special – Lowest Subscription Price Ever

Why must Halloween be only for the kids? You got them all dressed up in cute little costumes and trekked around the neighborhood in hopes of bringing home a full basket of cavity-inducing treats and smiles all around.

But how about a treat for yourself? You may soon have some big dental bills to pay. What if you wanted to learn how to dramatically improve your investment results? Don’t you deserve a little something to help make that possible?

What better Halloween treat for yourself than a subscription to Terry’s Tips at the lowest price ever? You will learn exactly how we have set up and carried out an options strategy that doubled the starting portfolio value (usually $5000) of five individual investment accounts which traded Costco (COST), Apple (AAPL), Nike (NKE), Starbucks (SBUX), and Johnson & Johnson (JNJ), including all commissions. These portfolios took between 7 and 17 months to double their starting value, and every single portfolio managed to accomplish that goal.

One year and one week ago, we set up another portfolio to trade Facebook (FB) options, this time starting with $6000. It has now gained over 97% in value. We expect that in the next week or two, it will surge above $12,000 and accomplish the same milestone that the other five portfolios did.

Many subscribers to Terry’s Tips have followed along with these portfolios since the beginning, having all their trades made for them through the Auto-Trade program at thinkorswim. Others have followed our trades on their own at another broker. Regardless of where they traded, they are all happy campers right now.

We have made these gains with what we call the 10K Strategy. It involves selling short-term options on individual stocks and using longer-term (or LEAPS) as collateral. It is sort of like writing calls, except that you don’t have to put up all that cash to buy 100 or 1000 shares of the stock. The 10K Strategy is sort of like writing calls on steroids. It is an amazingly simple strategy that really works with the one proviso that you select a stock that stays flat or moves higher over time.

How else in today’s investment world of near-zero dividend yields can you expect to make these kinds of returns? Find out exactly how to do it by buying yourself a Halloween treat for yourself and your family. They will love you for it.

Lowest Subscription Price Ever

As a Halloween special, we are offering the lowest subscription price than we have ever offered – our full package, including all the free reports, my White Paper, which explains my favorite . . .

October 11, 2016

How to Make 40% With a Single Options Trade on a Blue Chip Stock

Bernie Madoff got billions of dollars from investors by offering 12% a year. Today I would like to share an investment which should deliver more than triple that return. I doubt if it gets Madoff-like money flowing into it, but maybe some of you will try it along with me. Nothing is 100% guaranteed, but the historical price action for this conservative stock shows that this options spread would make over 40% a whopping 98% of the time.


How to Make 40% With a Single Options Trade on a Blue Chip Stock

Johnson & Johnson (JNJ) is a $70 billion multinational medical devices, pharmaceutical and consumer packaged goods manufacturer founded in 1886. It is truly a “blue chip” stock which pays a 2.7% dividend and raises it almost every year.

JNJ has been a favorite underlying stock for us at Terry’s Tips. Early in November 2015 we . . .

October 6, 2016

Calendar Spreads Tweak #5 (Like Writing Calls on Steroids)

Lots of people like the idea of writing calls. They buy stock and then sell someone else the right to repurchase their shares (usually at a higher price) by selling a call against their shares. If the stock does not go up by the time that the call expires, they keep the proceeds from the sale of the call. It is sort of like a recurring dividend.

If writing calls appeals to you, today’s discussion of an option strategy is right up your alley. This strategy is like writing calls on steroids.


Calendar Spreads Tweak #5 (Like Writing Calls on Steroids)

When you set up a calendar spread, you buy an option (usually a call) which has a longer life than the same-strike call that you sell to someone else. Your expected profit comes from the well-known fact that the longer-term call decays at a lower rate than the shorter-term call you sell to someone else. As long as the stock does not fluctuate a whole lot, you are guaranteed to . . .

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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