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The Terry's Tips Track Record

 

The Terry's Tips 2016 Track Record for the First Seven Months

We currently carry out 11 portfolios at Terry’s Tips.   Paying subscribers can follow the results of all 11 (some newsletters only reveal their winning portfolios to all subscribers). Eight of the 11 portfolios can be traded through Auto-Trade at thinkorswim (so you can follow a portfolio and never have to make a trade on your own).  The 3 portfolios that cannot be Auto-Traded are simple to do on your own (usually only one trade needs to be made for an entire year).

Four of our portfolios are based on underlying stocks we like.  Our portfolio based on Costco (COST) was started in June of 2013 and gained 197% through September of 2015 while the stock rose 31%.  Our Starbucks (SBUX) options trading gained 195% for the first 9 months of 2015 while the stock rose 43%. Our portfolio based on Nike (NKE) was started in July of 2013 and gained 138% since then while the stock has gained 32%.  Our portfolio based on Facebook (FB) was started with $6000 in October 2015 and was worth just under $10,000 at the end of July 2016, eight months after its start.  This is the only one of the four portfolios that has not yet doubled in value, but a full year has not yet elapsed.

We set up a new $5000 portfolio to trade options on Johnson & Johnson (JNJ) in November 2015 and in July 2016, eight months later, the portfolio was worth over $10,000 and we declared a 2-for-1 split so that new subscribers could follow the portfolio for a starting investment of $5000.

Two of our portfolios are not available for Auto-Trade, but they are easy to follow on your own because they involve making a single trade at the beginning of the year and just waiting for the year to elapse.  These portfolios are designed for the options to expire worthless at the end of the year so no closing trades are necessary.  One of these portfolios will make 45% in 2016 if Facebook (FB) closes at any price above $105 (current price about $124) and Johnson & Johnson (JNJ) closes above $95 (current price about $125).  Both stocks could fall by a large amount and the full 45% gain will materialize.

We have been running the second of these portfolios for three years.  In 2014, it gained 20%.  While this was disappointing for us, it was still a lot better than most conventional investments.  In 2015, it gained 31%.  Through July of 2016, the portfolio had gained 52% and was on target to make 71% after commissions for the year (this gain will come about if the underlying stock (a volatility-based ETP) is at any price above $30, and it was at $65 at the end of July, so the 71% seems to be a sure thing for 2016).

Paying subscribers can choose to follow any (or none) or all of eight actual portfolios, either on their own or through Auto-Trade.  Some of our portfolios have specific goals.  One is a bearish portfolio that is designed to protect against other stock investments a subscriber might have.  This portfolio was started in June 2016 and has lost money since the market has risen steadily since it was started.  Another is based on the price of oil eventually recovering, it has also lost money in 2016 because the price of oil has fallen since we started the portfolio (the long positions in this portfolio don’t expire until 2018 so we have plenty of time to recover our losses).

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

August 25, 2016

All About, or at Least an Introduction to Calendar Spreads

This week I would like start an ongoing discussion about one of my favorite option plays. It is called a calendar spread. It is also known as a time spread or a horizontal spread. But most people call it a calendar because that’s where you focus much of your attention while you hold this kind of a spread. On a specific date on the calendar, you discover whether you made or lost money since you first bought the calendar spread. In the next few blogs, I will discuss all sorts of variations and permutations you can make with calendar spreads, but today, we will focus on a bare bones explanation of the basic spread investment.

Terry

All About, or at Least an Introduction to Calendar Spreads

A calendar spread consists of the simultaneous purchase of one option (either a put or a call) and the sale of another option (either a put or call), with both the purchase and the sale at the same strike price, and the . . .

August 15, 2016

The Difference Between Buying Stock and Trading Options

This week I would like discuss a little about the differences between buying stock and trading options. I would also like to tell you a little about a specific recommendation I made to paying Terry’s Tips subscribers this weekend in my weekly Saturday Report.

Terry

The Difference Between Buying Stock and Trading Options

If the truth be known, investing in stocks is pretty much like playing checkers. Any 12-year-old can do it. You really don’t need much experience or understanding. If you can read, you can buy stock. And you probably will do just about as well as anyone else because it’s basically a roulette wheel choice. Most people reject that idea, of course. Like the residents of Lake Wobegone, stock buyers believe that they are all above average – they can reliably pick the right ones just about every time.

Trading options is harder, and many people recognize that they probably aren’t . . .

August 8, 2016

Historical Performance of 10K Strategy Stock-Based Portfolios

This week I would like to outline the basic stock option strategy we use at Terry’s Tips where we have created eight portfolios each of which is traded in an actual separate account and is available for Auto-Trade at TDAmeritrade/thinkorswim. Terry’s Tips subscribers can have every trade in these portfolios placed automatically for them in their own thinkorswim accounts through their free Auto-Trade service.
Enjoy the full report.

Terry

Historical Performance of 10K Strategy Stock-Based Portfolios: At Terry’s Tips, we call our options strategy the 10K Strategy. We like to think of it as shorter than a marathon but longer than a sprint. Most people who trade options seem to prefer sprints, i.e., short-term speedy wins (or losses). The basic underlying idea of our 10K Strategy is 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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