The Terry's Tips 2017 Track Record Final Results
The year has ended, and it is time to record the results for 2017. The composite average of our 10 portfolios gained 113% for 2017, just about the best year we have enjoyed in our 16 years of publishing Terry’s Tips. Only one portfolio (Honey Badger) lost money (and it covered the entire loss for the year in the first week of 2018).
• Boomer’s Revenge – (restarted with $5000 on 1/22/18 after withdrawal of $2797) – 56% gain for 2017
• Capstone Cascade – (restarted with $10,000 on 1/2/18 after withdrawal of $4836) – 48% gain for 2017
• Contango (our only portfolio not available for Auto-Trade – restarted with $5000 on 1/2/18) – 138% gain for 2017
• Earnings Eagle (started with $5000 on 6/7/17) – 31% gain over last 6 months of 2017
• Galloping Turtle (restarted with $5000 using new strategy on 11/20/17 after withdrawal of $3960) – 79% gain for 2017
• Honey Badger (restarted with $5000 using a new strategy on 12/26/17) – 48% loss for 2017 (fully recovered in the first week of 2018)
• Leaping Leopard (restarted on 12/26/17 with $5000 after withdrawal of $2001) – 40% gain for 2017
• Rising Tide (restarted on 1/2/18 with $5000 after withdrawal of $7615) – 152% gain for 2017
• Vista Valley (restarted in 2018 after VXX reverse split is carried out with $5000 after withdrawal of $5058) – 101% gain for 2017
• Wiley Wolf (restarted on 11/8/17 with $5000 after $19,840 withdrawal) – 728% gain for 2017
Each of the above portfolios is carried in a separate brokerage account and include all commissions. 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 at Terry's Tips, we disclose every trade and every position for every portfolio at all times.
All results include commissions at the standard rate charged by thinkorswim for Terry's Tips subscribers. Many newsletters conveniently (for them) do not include commissions when they report their trading results. By the way, our subscription rates are considerably less than just about any other options newsletter.
While we can’t promise that future years will be anywhere near as profitable as 2017 has been for us, we do believe that the basic strategies that we have developed can consistently deliver far greater returns than any conventional investments that we know of.
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
December 10, 2018
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
Will Medpace Holdings (MEDP) Break to New All Time Highs?
Medpace Holdings has been getting some media attention as of late, take a look at these two articles to see what analysts are saying about this stock – MEDP vs PRAH: Which Stock Should Value Investors Buy Now? and Bullish Trend Signal for Medpace Holdings.
The technical appeal in MEDP is it’s outperformance compared to the broader markets as well as some of the other stocks on the IBD Top 50 list. MEDP has had a pickup in upside momentum since late October which seems to suggest it has resumed it’s uptrend following a correction. In the past week, the stock saw some sellers near the $64 price point which resulted in a decline towards its 20-day moving average. A break of $64 would have the stock trading at all time highs. The stock appears to be well supported here with further support slightly below the 20-day moving average at $55 which was a level that held it higher after the gap up in late July. As well, there is a rising trendline near the horizontal level that is drawn by connecting the October and November low
[caption id="attachment_2292" align="alignnone" width="300"]
MEDP Chart December 2018[/caption]
*source Tradingview.com
If you agree there's further upside ahead for MEDP, consider this trade which is a bet that the stock will continue to advance over the next six weeks, or at least not decline very much.
Buy To Open MEDP 18JAN19 50 Puts (MEDP190118P50)
Sell To Open MEDP 18JAN19 55 Puts (MEDP190118P55) for a credit of $1.33 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when MEDP was trading near $58. 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 $500 maintenance fee, making your investment $369.50 ($500 – $130.50). If MEDP closes at any price above $55 on January 18, both options would expire worthless, and your return on the spread would be 35% (312% annualized).
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
[caption id="attachment_2293" align="alignnone" width="238"]
IBD Underlying Updates December 6, 2018[/caption]
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
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December 2, 2018
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.
Last week, the market (SPY) enjoyed its best week in 7 years. The 8 real-life option portfolios carried out by Terry’s Tips shared in the good news. Our composite portfolio value gained 27% for the week, one of our best weeks ever.
Terry
Can Intel Corp. (INTC) Overcome The $50 Psychological Barrier?
Several analysts think Intel stock can move a lot higher, here are two of them – Why Intel ‘s Stock Is Poised To Surge and Bull of the Day: Intel (INTC).
From a technical perspective, INTC is facing . . .
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November 25, 2018
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
Should You Buy the Post Earnings Dip in Charles River Laboratories (CRL)?
Recent price target upgrades suggest more upside for CRL. Take a look at these two articles that contain the details – Charles River Laboratories PT Raised to $148.00 at Robert W. Baird and Charles River Laboratories Given a $147 Price Target at Royal Bank of Canada.
CRL has been contained within a rising trend channel for just over a year now. A spike higher following their latest earnings report was met with sellers at the top of the channel, resulting in a dip back to roughly the halfway point. Support is found at $125 which was where the stock was trading prior to the earnings inspired gap up. CRL has been outperforming the broader markets as it traded at record highs just a few weeks ago. The trend remains healthy, technically speaking, on a daily chart and higher time frames and there have not been any technical indications that the uptrend won’t continue.
[caption id="attachment_2281" align="alignnone" width="300"]
CRL Chart November 2018[/caption]
*source Tradingview.com
If you agree there's further upside ahead for CRL, consider this trade which is a bet that the stock will continue to advance over the next four weeks, or at least not decline very much.
Buy To Open CRL 21Dec18 120 Puts (CRL181221P120)
Sell To Open CRL 21Dec18 125 Puts (CRL181221P125) for a credit of $1.53 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when CRL was trading near $127. 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 $150.50 and your broker would charge a $500 maintenance fee, making your investment $349.50 ($500 – $150.50). If CRL closes at any price above $125 on December 21, both options would expire worthless, and your return on the spread would be 43% (581% annualized).
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
[caption id="attachment_2282" align="alignnone" width="239"]
IBD Underlying Updates November 22, 2018[/caption]
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
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