from the desk of Dr. Terry F Allen

Skip navigation

Member Login  |  Contact Us  |  Sign Up

1-800-803-4595

The Terry's Tips Track Record

 

The Terry's Tips 2016 Track Record and the Start of 2017

We currently carry out 9 portfolios at Terry’s Tips, 8 of which are available for Auto-Trade at thinkorswim (so you can follow a portfolio and never have to make a trade on your own).    All except one of these portfolios can be carried out inside an IRA.   Paying subscribers can follow the results of all 9 portfolios. Some newsletters only reveal their winning portfolios to all subscribers, but every trade and every position for every portfolio is open for everyone at Terry's Tips. 

At the beginning of 2017, we made some changes in the strategies we employ at Terry's Tips.  In the past, we primarily used a strategy we call the 10k Strategy which involves calendar and diagonal spreads on underlying stocks that we like.  We were lucky enough to pick some good companies, and all 5 that we picked in 2015 and 2016 made it possible for us to double the portfolio value in an average of 13 months.  

These 5 companies were Costco (COST), Starbucks (SBUX), Nike (NKE), Facebook (FB), and Johnson & Johnson (JNJ). Each of these companies moved up nicely for us, and our portfolios gained many times the percentage gains in the stock.

Unfortunately, after we doubled the portfolio values of each of these underlying stocks, many of their prices tumbled, and we lost much of what we had gained.  This caused us to de-emphasize using the 10k Strategy for 2017 and beyond, and now only two of our portfolios employ that strategy. These portfolios trade options on FB and MasterCard (MA).

From 2013 through 2016, we also carried out portfolios which used a strategy of picking companies we liked (or Exchange Traded Products, ETPs), and selling long-term vertical credit spreads on them.  These portfolios averaged over 40% gains per year over this period, and because of this success, we shifted most of our portfolios to this strategy at the beginning of 2017.

We carry out portfolios with differing risk levels.  Our most conservative portfolio picks several blue chip companies which pay high dividends (which help protect against a big price drop), and set up option spreads which will make profits just as long as the stock does not fall more than about 10% for the year.  This portfolio is designed to gain 30% for the year.

Other portfolios are designed to gain 40% - 50% per year, but the underlying stock or ETPs must do a little better than falling 10% to make those gains. Many portfolios will make these numbers as long as the stock ends up the year at any higher price than where it starts out.

As this is being updated six weeks into 2017, all 9 portfolios are showing nice gains for the year.  The average portfolio has gained 17.6% for the first six weeks of the year, which is well above our original goals.  Annualized, this gain works out to over 150% per year.  While we don’t expect to be able to continue these wonderful results for the entire year, we are surely off to a good start toward achieving the goals we have set up for each portfolio.

The Long-Term Track Record at Terry's Tips

 

Terry’s Tips has operated sample option portfolios since 2003 for their subscribers to follow or mirror in their own accounts. These portfolios are actual portfolios, and results include all commissions that an investor would pay at thinkorswim, Inc. by TD Ameritrade. Many option newsletters conveniently (for them) do not include commissions in their performance numbers. This makes their results look a lot better than they actually are because commissions are a significant cost of trading options (unlike stock trading which involves much lower commissions).

 

In most of these years, the option portfolios have beaten the market averages by a very large margin. In some years, the portfolios have incurred losses similar to the magnitude of the market losses.

 

Option trading involves leverage, and leverage works in both directions. Gains (and losses) are often greater than changes in the market. However, we have tried to minimize the losses in down years so that our losses are less than those of the markets in general, and to enjoy greater gains than the markets in good years. Most of the time, we have been successful in carrying out these goals.

 

Terry's Tips Stock Options Trading Blog

March 21, 2017

What Can Be Learned From Successful Option Strategies

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 . . .

March 15, 2017

Options Which Trade After Hours (Until 4:15)

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 . . .

March 13, 2017

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

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 . . .

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

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

Member Login  |  Programs and Pricing  |  Testimonials  |  About Us  |  Legal Notices  |  Accessibility Statement  |  Privacy Policy  |  Site Map

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

©Copyright 2001–2017 Terry's Tips, Inc. dba Terry's Tips

Close Window

Sign up for the Terry’s Tips Free Newsletter and Receive 2 Options Strategy Reports:

or

Login to Your Existing Account Now

No Thanks

Newsletter Signup

Member Login

Enter your primary email below, and we'll send you a new password