from the desk of Dr. Terry F Allen

Skip navigation

Member Login  |  Contact Us  |  Sign Up


Thanks so much for detail explanation of each trade. I simply love your report and eagerly waiting for your report every Saturday. I am glad I found you guys. I am super happy to learn how your make a trade and invest with so much dedication, active management and vast array of knowledge, otherwise it’s simply not possible to see such wonderful returns.

~ Senjeev

I have been trading the equity markets with many different strategies for over 40 years. Terry Allen’s strategies have been the most consistent money makers for me. I used them during the 2008 melt-down, to earn over 50% annualized return, while all my neighbors were crying about their losses.

~ John Collins

I’ve always had the greatest respect for Terry’s experience and teachings. There are numerous individuals now trying to sell option schemes. This new guy sending out emails, (name deleted), charging $5000 knows just enough to be dangerous–his free videos are bogus! In my humble opinion, Terry’s one of the few that’s got it right.

~ Robert Yates

Terry’s Tips is an ongoing educational experience for me. The Mesa approach offers the opportunity to view the changes in the market, the effects of extreme price swings, volatility and theta and still realize a profit! This trading reality has been more valuable to me than any text. The Saturday reports are a valuable adjunct, giving a detailed view of each portfolio, analyzing the past week’s performance and projecting “what-if’s” for the next week/expiration month.

Many thanks to Terry and his staff!

~ Emorsini

An extremely Profitable first half of 2008, then, Armageddon hit in the Fall, Summary Of my results: My personal Option Strategy accts lost 98.8 %, My Terrys Tips Might Mesa Account GAINED 34 % … Incredible !

~ Mark Ott

The weekly reports have proven invaluable as I’ve been able to set up similar portfolios on my own resulting in substantial profits while the markets have been dropping. I feel strongly that these strategies can benefit virtually any investor’s portfolio when used properly. When position sizing is properly maintained, these portfolios can add return non-correlated to the stock market.

~ Mark

It is often said that options are to stock trading as chess is to checkers. I was looking to find the chess master amongst the checker’s champs, and Terry is the one. Looking for the very smart yet understandable way to trade options? Look no further.

~ Phil Wells

Terry’s Tips makes me feel smarter than the professionals by out performing the market even during the worst down-turn in decades!

~ Gavilán

As a result of your new Big Dripper portfolio, I’ve been able to make substantial gains. To date, the annualized rate of return has been just under 70%. More importantly, the wide profit range of SPY prices makes it quite suitable for the current volatile environment.

~ Mark Chapman

The weekly reports have proven invaluable as I’ve been able to set up similar portfolios on my own resulting in substantial profits while the markets have been dropping. I feel strongly that these strategies can benefit virtually any investor’s portfolio when used properly. When position sizing is properly maintained, these portfolios can add return non-correlated to the stock market.

~ Mark

Bravo for Terry! Over the past months while the markets in general have tanked and had historically high volatility, Terry’s strategies have managed to show impressive gains in several of his portfolios. He has developed a method for making profits with options, even when the markets are gyrating in huge ranges and the typical investor is experiencing painful losses.

~ Mary Ann Norfleet, Ph.D.

I think of myself as a sophisticated investor and was certain my asset allocation was bullet-proof for the crash of 2008. I was out of stocks, 20% in precious metals, 10% in foreign currencies, 20% managed by (formerly) successful Commodity Trading Advisers.

The CTA’s are down 50%, gold and silver are down, currencies are down – the only segment of my assets that has grown has been the slice which follows Terry’s Tips and which is ‘auto-traded’ by my broker. Terry has done remarkably well. Thank you, Terry!

~ Bill Masciarelli

I’ve been involved with investing equities, options and futures for most of my life and I’m seventy years old. You are to be congratulated on your method, expertise and diligence. I plan to add to my account and the number of portfolios.

~ Karl

I’ve tried several “investment services” and newsletters over the last few years, but yours is the first one I really have confidence in.

~ Martin

…. with the market at its current lower level, that in the past it would take months and some times years to recover with stocks and mutual funds, where as the spreads that I have using your system take a couple of weeks to recover with far less upward movement in the market. I know that with my holdings in stocks and mutual funds in the past, that the most recent decline would look pretty bad on my statements. Right now, I’m way ahead of my July holdings from the market peak over 14,000. I’ve pulled out $25,000 to remodel my house and I’m still $50,000 up in my account after the withdrawals.

~ Marc

I’m an auto-trader of multiple portfolios (7 currently, and looking forward to adding the Emerging Elephant this week). Naturally, my favorite days as a Terry’s Tips trader are those days where the profits come pouring in. My second favorite days, however, are days like Monday, when the market is totally tanking, but the Terry’s Tips portfolios are experiencing only mild losses. (Yesterday, the major indices were down 1.8%-2.5%, but my Terry’s Tips portfolios were down in aggregate only about .5%, and several actually were up.)

~ Mark

Before rejoining Terry’s Tips three months ago I struggled to keep my head above water, even attempting to use the 10K strategy. Now when I look at our portfolio I think of the line from “Butch Cassidy and the Sundance Kid”, “who are these guys!”. Your performance is nothing less than remarkable and indicates a deep commitment of time and energy to make this happen. Yours is a rare accomplishment for a newsletter to help the small investor, the “little guy”, achieve success in the incredibly difficult world of investing. You should feel very proud. Thank you!

~ Neal

Couldn’t wait to share these results with you. With the DOW down 242 and Composite down 55 my TT portfolio held its ground with a net gain of $1418. I would have been jumping for joy if I had a $5000 loss for the day. Talk about preservation of capital with above average rates of return! I have 36% Calls/Puts, Big Bear, Smile SPY, Oil 4 and Apple. This market demonstrates that it is an excellent mix for great gains and downside protection. Believe me, I don’t miss getting my mutual fund statements that would probably be down right now about $30,000 since the highs in July and August. Thanks for your great work!

~ Marc

Thank you for your quick response to my question. I love your program, and have been trading it for just over a year now. However, as you know there is always something new or unusual which occurs and it’s nice to know I can count on you and your organization’s support when I have an issue.

I also want to thank you for my new BMW 5 series. I promised myself, (and convinced my wife) that I would buy it once I doubled my initial investment through using your program. Between June, 2006 and October, 2007, I did it, and my new car is now on order.

~ Joe P.

I have been a subscriber for about a year. I autotrade in 2 different accounts, all your strategies. I read everything you write on Saturdays. I love your happiness thoughts and everything else. I usually do not communicate at all but I had to tell you how well my accounts with you are doing compared to everything else. You are awesome. Keep up the good work. Thank you.

~ Maya

One of our goals at Terry’s Tips is to provide subscribers with enough options knowledge so they no longer need us. We were delighted to receive this message from a former subscriber:

I’m using your multiple spread strategy using the NDX as the underlying. I papered traded it for 6 months and was up over 100%! Went live on the Oct/Nov spreads and made 18% the first month. Thanks for the education!!

I’ve referred numerous people to your site when I tell them about the results I’ve seen.

~ Greg – Anoka, MN

You’re a class act and it’s obvious to me why you have become so successful. Keep up the good work. I look forward to staying with you for a long time.

~ Tim

Currently, I have been a customer of Terry’s Tips for just over one year. I have tried a number of your underlyings for the 10K strategy. Overall, I think I did pretty well for the year–up 39% net.

~ Brad

I am a new subscriber as of August of this year and have been very pleased with the service provided by Terry’s Tips. I started an auto traded account with thinkorswim and have been impressed on how well the actual fills mirror the recommendations. My 36% Solution Puts portfolio is up over 14% within the first 60 days.–way above my expectations—Thanks for delivering a service that so far has exceeded what you sell it to be.

~ Jeff

Good strategies, good feedback and excellent service overall. There are products out there peddling in the thousands of dollars and they don’t come close to what you offer.

~ Shmuel

After 25+ years at this, I have seen a lot of experts come and go. I have only found two where I consistently make money by following their experience and methods; one that I have followed since the ’80’s in the Hogs and Bellies at the Chicago Merc, and you. Nice work!

~ Bob

I signed up on Feb. 28, 2007 auto trading with my thinkorswim account. I’m even more amazed than I thought I’d be being up over $4400. on an initial investment of $10,400 since that date.

~ Zak

With my composite portfolio being up some 60+ % (even AFTER the correction we had in Feb) in just 16 months, I may be your single biggest fan. Keep up the good work.

~ Michael

I’ve been investing with Terry for less than 4 months (112 days) and would like to report that I’m up over 40% using Terry’s suggested positions in AAPL, GS, DIA, and OIH, only making minor departures from the “fairway” (a metaphor Dr. Allen can appreciate). I’m new to option spreads and am learning a great deal from Terry’s “literature,” Saturday Reports, and from the Thinkorswim software and website. For this success and your excellent, thoughtful and conservative management of the portfolios, I am very grateful. Sure beats writing covered calls.

~ Bill

I can’t figure out why everyone isn’t using calendar spreads using your method. Sometimes it seems too good to be true. My returns the past two years have been almost unbelievable. I don’t even try to tell anyone about it because they wouldn’t believe me.

~ Fred

I don’t know if a lot of subscribers thank you but my wife and I have watched the money that we have invested in your program grow at an alarming rate. We especially like the fact, which no other investments offer, the ability to cash out profits every month if they are earned. Cheers to you and your staff.

~ Rob

I am very very pleased with the performance of the portfolios. I’ve been interested in options for a very long time, but this seems to work more of the time and with better results. So I just keep moving more and more money from my self directed Ameritrade account to the autotrade accounts at TOS.

~ Justin

I had started with $10,000 in 36% solution at Oct’06 expiration. Closed that account with $14,020 after Apr’07 expiration. Started with $28,060 on another account at April’07 expiration. Closed at $32,500 at May’07 expiration. I have made close to 8% a month since you started the IWM portfolio.

~ Sanjeev

I have learned more about options from you than I have learned reading several option books. I was even a financial advisor for 5 years and have learned more about options from you than anyone.

~ Tyler

I have learned more than I ever expected for your tips and want to thank you for starting an educational journey I value more than my MBA.

~ Mark

I’d have confidence in your system…I have seen it work very well…currently I have had a first 100% gain, and am now working to diversify into more portfolios. Goldman/Sachs is also doing well – up about 40%…

This kind of trading is actually an “art”… I have my own field of expertise…but sadly I can only offer my great appreciation to what you do so instinctively.

~ Jay

My Oil Services 3 got set up on Monday April 23rd and GS was set up that following Wednesday. It is not May 4th and I have made almost $2600. In 10 days! So far this is not a 10k, it is a sprint!

~ Jan

Your service is just awesome and can’t wait to scrape up more $$ to put in other portfolios.

~ Ty

Just wanted to keep you informed of what I am doing in OIH. My profits to date are $18,322 (in 7 months) on a $34K investment using the 10K Strategy.

~ Roger

I have used a variation of the 10K Strategy with Cummings Engine and Goldman Sachs since the summer of 2006, and have made a 100% return on both investments.

~ Patrick

There is merit in using IWM for the 10K Strategy…I started an IWM portfolio on 5 Sep 06 and it is now my best performing portfolio, up more than 40% as at market close on 12 Jan07.

~ Janet

As a new subscriber in 2006, I wanted to take this opportunity to wish you and your family a great 2007!You and your staff have been most generous with your help as I become adept at using your method to invest in credit spreads. It has been the best year for me financially in the 10 years I have been investing and I am looking forward to getting better in the coming year with even greater financial success. You have given me the tools (education) to help ensure the financial security of my family and retirement and I wanted to take a moment to let you know that I appreciate it. Here’s to a tip of the hat to all at Terry’s Tips for a great 2006!

~ Michael W.

I’ve been trading GRMN using the 10K Strategy for the last three months and will double my money by the end of this month.

~ Nathan

I started with your service about 7 months ago using three different portfolios worth $70k. Those changed of course over time, but today I am using 5 of the portfolios and the value just crossed the $100k mark (actually $101k) this morning. I consider this quite remarkable considering I have been investing for the last 25 years and have never seen consistent gains as you have shown me.

~ Mark

I’ve been very impressed by not only your strong trading results, but your true dedication to your readers. Your hard work to keep us informed of both your portfolios and trading techniques is greatly appreciated. I look forward to your reports each week.

~ Gary

I’ve seen the results of the 10K strategy and believe in it. With the options calculator/graphic software you recommended, I can validate my own trades and run a variety of “what-if” scenarios to best suit my needs.

~ Kurt

I started 2005 with a $57,000 tax loss carry forward from 2004. I now figure that that is wiped out and I will pay tax on about $30,000, with about 95% of this strictly from calendar spreads using your ideas.

~ Fred in CA

Having been a Terry’s Tips subscriber for about a year, I do not view Terry as an adviser, but more of a “mentor for hire”. Within the context that we are all trading unpredictable markets, he allows his subscribers to watch over his shoulder, choose which markets they wish to trade, and opt out when the going gets tough. He shares his failures and his successes with equal frankness and honesty. I have found nothing in his marketing to be untrue, and when a strategy strays from his stated goal, he is quick to shut it down.

~ Bob D.

Your 10K strategy really works. I made a $5,000 within a month. Thanks a lot.

~ Kazuo

Btw, the last 8 months or so have really been a fantastic learning experience with the current strategies!

~ Sylvio

I started my (10K) Google on 10/24/05 (lucky) so I’m currently up 93% (as of 12/9/05). I couldn’t have done it without you.

~ Bob

I am now willing to declare that I have made a 100% return using the 10K Strategy since I started with individual stocks on November 19, 2004 … I would tell my kids: “Write it on the chalkboard and repeat after me: This 10K Strategy works if you do it right.”

~ Fred from Kansas

You guys ROCK !!!!!!!!!!!!!!!!!! I’m truly amazed by your emails.

~ Ziv G., San Francisco

Well, I’ve just finished the daily program and it was absolutely fantastic! You guys have put together an excellent program. When I initially signed up, I was hoping to learn about option spreads, how to set them and when to use them. Learning how to integrate them into well-defined strategies has been a welcome bonus.

~ Jeremy C., Coffs Harbour, Australia

‘scuse me for jumping in here. I also subscribe to “Terry’s Tips”. First advisory service I ever have subscibed to … I’ve been pleasantly surprised. As an option writing beginner (lost plenty with naked calls) as you say you learn the basic strategy very quickly. What Terry adds is the small details. How do you handle things in the last days of expiration. What to do with options you wrote which have very little time value approaching expiration. How to select the correct strike for next months writes etc.

I’m sure these are all obvious to you, but have provided an interesting education for me.One other thing – I think he gives to charity (some of?) the subscription price. He also gives to charity $1000 per day, I believe. These facts were just sufficient to convince me to have a go. I’m glad I did.

~ Steve (excerpt from Yahoo! Finance Message Board)

Hi Terry! I hope you are doing well. First of all I want to thank you for sharing with us such a powerful, profitable and low risk strategy. This is really great. I love it. Thanks again.

~ Muhammad

Using your system, I started trading QQQQ in my Roth IRA 12 August 03 with Thinkorswim. At that time, the account value was $82,000. On the opening of the last trading day of this year, 31 Dec 03, the account is worth more than $145,000. This is an over $60,000 increase in less than 5 months!

~ John D

I turned a $20,000 account into $102,000. $30,000 of that was added to the account during the year so I had a profit of $52,000. I don‚t know exactly how to do the math but it seems to me to be about 200%. I started using your ideas using the QQQQ options. Mostly I tried to follow your 10K strategy, I traded up to higher strike prices aggressively, and use the proceeds to buy more positions. I made $33,000 on this strategy in about 5 months. I now trade exclusively in QQQQ options in my main account.

~ Ross R.

Hi Terry – just finished reading your new summary of the 10k strategy and want to commend you on how well it is written.-well thought out, very concise, easy to understand and as we know, very profitable! I’ve been with you about a year now and have 4 different accounts utilizing the 10k and Easy Pie strategy. Besides QQQQ I have been using the strategy with DIA, FNM, WM and DHI -all with success. I am up over 50% and would be a lot higher had I utilized the Green/Amber/Red strategy, as I got burned in the beginning using the cover-your-butt strategy.

Anyhow, I just finished reading a novel, “The DaVinci Papers” and this new 10k strategy is comparable to my finding the holy grail! Keep up the good work!

~ Bob E.

I can’t thank you enough for your excellent service at such an extremely low price. I have subscribe to many services for many more dollars and have lost money. Sure they promise the moon and then in hindsight tell you how they made big money, but you tell us what to do and then do it yourself in a verifiable way. WOW! What a concept…I’m thrilled beyond words with the total results.

Thank you so very much and a HAPPY THANKSGIVING TO YOU AND YOUR STAFF.

~ Walter C

I’ve really enjoyed reading your commentary and studying your strategies, I’ve found this to be a great service (at a reasonable price!)

~ Jay S.

It is a joy to get e-mail from you as it always contains needed data and real word factual data. Of course, since I have nearly doubled my money in 7 months, it is no wonder that I am happy.

~ Bob J.

Just read your RSI input and thanks again for your very applicable inputs and information. You could keep it a secret and charge for all this great data you provide, but you seem to be more interested in providing us very helpful information and information we can learn from. It is a joy to get e-mail from you as it always contains needed data and real world factual data.

~ Bob H.

Just a note to thank you for your wonderful tuition and service, for me it’s like being a trainee option trader. Although I have an advanced degree in Finance with a specialization in derivatives I have not until now found a profitable way to trade the options markets successfully. Your explanation is simple and removes all the complicated stuff, in fact I don’t think its needed to play the market successfully, I guess that’s where your experience of having traded on the floor comes into play. Please keep up the good work.

~ Michael D.

Thanks for taking the time to clarify my understanding on the ratio question – you don’t get this quality of service much anymore. You earned the kind words…keep up the good work. Thanks.

~ Don M.

I sold the mutual find shares I had in small IRA, and began my OptionsXpress account in early April with about $5,300. My account’s value is now $11,000. Needless to say, I am very pleased. The hardest part of it is having the discipline to not “tinker” with it on a day-to-day basis. Thanks again for your advice and information. I really enjoy your writing style, and of course I’m enjoying the results of following your strategies too!

~ Randy G.

I have a PhD in math, but make my living from computers (software.) It is fair to say that during the last 25+ years I spent THOUSANDS of hours reading, learning, simulating and developing trading systems, mostly in the futures market (not that far from options, but more historical data is available.) Since I subscribed to your service, I spend most of my research time on it and I gain bigger and bigger confidence that “this is it (for me).

And finally, yet another praise of your methods, communication and teaching style. I learn something new from every single report. It is extremely useful for me that (like in this issue) you don’t simply list the changes to be made, but reveal the thought process behind them and discuss alternatives. I feel that these lessons will make me a better trader.

~ Joseph J.

I am not a writer of flattering letters to advisors, so it is of some consequence in my investing history that I tell you how happy I am with your 10k Strategy. I hope to make it grow into the most significant part of my investments and eventually rule the world. I will be benevolent towards you, Terry, in appreciation for your brilliance and willingness to let former small fries like myself get in on the action.

~ Ralph W.

Thanks for another excellent report. In your report about the Fannie Mae trades you said your goal was to underpromise and overdeliver. Your weekly reports and updates easily meet that lofty standard. I love it.

~ Kevin M.

I just wanted to let you know that the 10K strategy has worked wonders for me. In this ideal environment of little change in the DOW recently I have done very well. In June, with the DOW at 9200 I invested $48,000. Since then I currently have an account value of around $135,000. Not bad for 3 1/2 months!

I now have a boat load of cash. The question is what to do now.

~ Dale B.

Your strategy is paying off for me, an average of 18.5% gain per month since I started. Yahoo!!!!

~ Richard A. (Australia)

I would like you to know that I have learned much more from your tutorial than I did from hundreds of books and articles on options and strategies that I have read. I am sure your subscribers have had the same experience.

From your trading subscribers and me: many thanks!

~ Mark C.

I’ve previously attended a couple of seminars and read several “thick” books about options and writing covered calls, but nothing come close to what you teach. Your cut-the-chase, straight-to-the-point approach coupled with a live ongoing QQQQ-DIA trading program truly sets you and the rest apart. In K.I.S.S., you’re the best, Terry.

~ Kim, Grand Rapids, MI

Once I attended a Tai Chi Class thinking I knew what to expect… but the instructor was no average instructor but a Master… I immediately realized how much I didn’t know… and by putting aside my previous false assumptions I freed my mind to learn more… I sort of feel the same way now… So pardon me for my previous doubts about investment services in general. Your’s is like no other I’ve seen. :))

~ Andrew W.

I’m amazed by your ability to explain the complex analysis of options in a way that is thorough, practical and understandable. What I find so helpful is the way you describe your thought process for each trade. Please keep it up.

~ Kevin P., Pismo Beach, CA

I want to thank you again for your information and compared to other services I have tried, you provide a great bang for a buck. It is the real stuff and the numbers work, not like some trading schemes that sound good but when you try to make the trades the numbers are not there and such minor things as margin requirements are also not mentioned.

~ Bob T., Garland, TX

I can’t believe I made 31% in two months and the premium available is much lower than in the past! Double my money in any event in 4 months easy!

~ Jim B.

If this keeps up, I will double my money inside of 6 months Watching you cope has taught me more about option investing than I would ever have learned had the market not been so unpredictable.

~ Rich B.

Did you know that your recommended 35 companies have gained nearly 35% since Feb. All are winners except for QLGC -which has lost (6%). For the year to date they are ahead by 22%. I sure wish I had bought them… They seem like a great pick for buy and hold. Congratulations! Good luck.

~ Brian

I have cleared my original investment in 3 months, so logically I should be able to turn this 4 times a year. 4-500% profit on original investment????

Terry, this potential almost scares me. I am not sure this system should be publicly shared, if it works as well as it seems it will. I am an insurance agent specializing in Annuities paying 7% A YEAR! I am sure if I advertised managing money and doubling it yearly, I would be laughed at. Especially with CD rates at 2-3%.

~ Joe M.

I’ve studied your plan backwards and forwards and I think you’re a genius. I also love your charity focus. I plan on doing the same, as I develop financial security.

~ Richard S.

I find something new every time I read your material. Thanks for having me on board and thanks for your help and guidance.

~ Jim H.

Unfortunately since I asked you about BP it has dropped almost 4 bucks a share therefore proving your point that covered calls are not risk free 🙂 Therefore, I am REALLY becoming a believer in your techniques.

~ Sally T.

I just want you to know that I am having more fun with your strategies than you can imagine. Your prompt e-mail replies are really helpful and I am learning more about the market than I thought possible. You explain yourself so well and your vast knowledge and experience of being a market maker are invaluable.

I know you put a lot of pressure on yourself and feel responsible for your students success, but if we just follow the strategies, it will work out, so don’t feel that you are responsible for the market when it goes down. It has become obvious to me that you are doing this because you love teaching, and not for monetary gain.

~ Fred T.

Thanks very much!!! Dr. (a college professor) told me about you. So, I thought I would look into it. To me, it has been a great education. Hopefully, this education will turn out to be profitable as well.

~ Dr. H.C. (another college professor)

I have taken many seminars, including Wade Cook, Risk Averse Trading (RATS), Oxford club seminars, countless books and tapes, all the while searching for a strategy that I could duplicate, generate monthly income and that would fit my lifestyle. Not until I came upon your service did I find what I was looking for. Your system makes so much sense to me and your willingness to help is invaluable. If you ever need a testimonial or anything, please let me know. I realize this is long winded, but I really just wanted to say “Thank You!”

~ Your student, Bob F.

I want to thank you profusely for mentioning how to place buy and sell orders to get better prices. I’ve saved beaucoup $$$$$ since I was informed about it. You’re one of the few honorable (and accessible) people in the business.

~ Norm H.


October 31, 2023

October 31, 2023

Dear [[firstname]],

Happy Halloween!

I haven’t written in a couple of weeks since credits weren’t close enough to my target entry prices when I initially sent the trades to my subscribers. However, the credit for last week’s trade on Charles Schwab (SCHW) has come back and now exceeds my initial target.

So, I figured why not send it now since I still like the setup. I’m not changing the initial write-up that I sent to my Saturday Report subscribers on October 21, so it may sound a bit outdated. But the trade is still a good play.  

Moreover, this week’s trade credit is a little above my entry level, so it’s good to go as well. So, you’re getting a first this week – two trades. Both bearish call credit spreads on stocks after they reported earnings.

Before I get to the trades, I want to let you know that our Terry’s Tips portfolios have caught fire in the past couple of weeks. We’re up 7% for the past two weeks while the S&P 500 fell nearly 5%. Our recent surge has pushed our overall return to more than triple that of the S&P this year.

I’m also happy to highlight our Microsoft (MSFT) portfolio, which gained 14% just last week alone and 40% over the past four weeks. It’s now up 65% for the year and is challenging our QQQ portfolio, which is up more than 70%!

How long can you afford to miss out on these profits? For our loyal newsletter subscribers (that’s you), I’m of course keeping the sale going that saves you more than 50% on a monthly subscription to Terry’s Tips.

You’ll get …

  • A month of all trade alerts in our four portfolios, giving detailed instructions for entering and exiting positions. Trade one portfolio or all four. It’s up to you.
  • Four to five (depending on the month) weekly issues of our Saturday Report, which shows all the trades and positions for our four portfolios, a discussion of the week’s trading activity and early access to our Option Trade of the Week.
  • Instructions on how to execute the 10K Strategy on your own.
  • A 14-day options tutorial on the opportunities and risks of trading options.
  • Our updated 10K Strategy white paper, a thorough discussion of the strategy basics and tactics.
  • Full-member access to all our premium special reports that can make you a wiser and more profitable options trader. 

To become a Terry’s Tips Insider Member, just Click Here, select Sign Up Now and use Coupon Code D21M to start a monthly subscription to Terry’s Tips for half off. You can cancel after a month but, of course, keep all the valuable reports.

I look forward to having you join in the fun and profits! Now on to the trades, starting with the previous week’s trade …

Avast Ye Schwabs

Two call spreads in Estee Lauder (EL) and the SPDR Healthcare ETF (XLV) expired worthless yesterday for gains of 25% apiece. To be fair, our bullish spread on Lululemon Athletica (LULU) expired in the money a week earlier for a larger loss. But the LULU misstep interrupted a string of seven straight winners.  A large part of this success has been due to taking a more bearish stance toward the market. In fact, today’s trade marks the fifth straight bearish call spread and eighth of the past 11. And with good reason, as our only losses of the past two months have been bullish positions. We’re on a solid roll. I hope you’re banking some winners.

With earnings season hitting full stride this week, there’s no end to the trade possibilities. Of course, there were the spotlight names, such as Tesla (TSLA) and Netflix (NFLX), whose large post-earnings moves grabbed headlines. But I prefer stocks that have smaller, off-the-radar moves that have a lower likelihood of reversing. One such stock is Charles Schwab (SCHW), which is no stranger to these pages (you may recall I had a few issues with the TD transition in September).

SCHW reported before the open on Monday, so we had a whole week’s worth of post-earnings price action to digest. The numbers were mixed, with net income coming in slightly ahead of expectations while revenue fell a bit short. However, both numbers fell far short of last year’s figures. I won’t bore you by parsing through all the individual data points (bank deposits, net interest revenue, TD migration, new brokerage accounts, etc.). Analysts seem to feel that SCHW still faces several short-term hurdles that have buffeted it all year, though the longer-term prospects are encouraging.

Speaking of analysts, their reaction was much like SCHW’s earnings … mixed. There were no ratings changes while target price changes went both ways. But analysts are clearly bullish on SCHW, giving it a solid buy rating on average. The average target price is near $70, which is around 35% above Friday’s close. This fits into the struggle now, prosper later narrative I mentioned above. But since we’re looking ahead only a few weeks, the bearish case makes more sense.

On the chart, the stock reacted positively to earnings, popping 6% in Monday’s trading before settling for a 4.7% gain. But that was the high close of the week, as the shares tumbled more than 5% after Monday. It’s notable that the 20-day moving average provided staunch resistance throughout the week, containing the initial Monday burst and then sending the stock lower through the week’s end. The 20-day has done a solid job keeping the current decline intact since it rolled over in May. I’ll also note that the stock enjoyed a massive 12.6% spike after its previous earnings report in July, only to give it all back during the subsequent month.

If you agree that the stock will continue its downtrend based on the resistance from its 20-day moving average, consider the following credit spread trade that relies on SCHW staying below $53 through expiration in 6 weeks:

Buy to Open the SCHW 1 Dec 56 call (SCHW231201C56)
Sell to Open the SCHW 1 Dec 53 call (SCHW231201C53) for a credit of $0.75 (selling a vertical)

This credit is $0.09 less than the mid-point price of the spread at Friday’s $50.87 close.  Note that I’m giving a little extra room on the entry credit.  Unless SCHW falls sharply at the open on Monday, you should be able to get close to that price.

The commission on this trade should be no more than $1.30 per spread. Each spread would then yield $73.70. This trade reduces your buying power by $300, making your net investment $226.30 per spread ($300 – $73.70). If SCHW closes below $53 on Dec. 1, the options will expire worthless and your return on the spread would be 33% ($73.70/$226.30).

Here’s this week’s trade …

Low Voltage

We had another spread expire worthless on Friday, but it made us sweat. Adobe (ADBE) was looking great, which was saying something as our only open bullish position. It hit an annual high on Oct. 12, putting the short put nearly 15% out of the money. Then the falling market tide grabbed the stock and pulled it down to within eight points of the short strike at Friday’s close. Another day and it might have moved into the money. But it didn’t and we bagged a gain of over 30% for our eighth winner of the past nine closeouts. That leaves us with five open positions, all bearish call spreads.

I’d love to add a put spread this week, but I can’t make a case for fighting the bearish tape. Maybe next week. For this week, I had way too many earnings plays to choose from, as this was the busiest week of the season. Frankly, I stopped looking after an hour, realizing that I could have spent all day analyzing dozens and dozens of top names.

I settled on General Electric (GE), which may seem like an odd choice given that it had a blowout report and had its best post-earnings day in years. The company easily beat earnings and revenue estimates and raised earnings and revenue growth guidance for 2023. The stock responded with a 6.5% pop on Tuesday, its largest gain after earnings since Jan. 2020. What’s not to like, right?

Well, analysts didn’t seem overly excited. In fact, only two weighed in with target price increases of $1 and $2. That’s it. The average target sits near $126, which is around 19% above Friday’s close. I’ll also point out the last time GE saw $126 was six years ago. There were no ratings changes, which were already heavily slanted toward the buy level. This does not seem like a hearty endorsement of a stock that just had as good an earnings report as you’ll see.

While the shares enjoyed a big gain on Tuesday, the rest of the week didn’t go well. In fact, the stock closed out the week below the pre-earnings close. The dual resistance of the 20-day and 50-day moving averages were in play, as the stock closed the week below both. These trendlines have rolled over into declines, a bad sign given that the stock doesn’t stray far from either. Another factor to note: GE had a big pop of more than 6% after the previous earnings release, but the stock drifted lower after that first day and has never closed a day higher since.

It seems that the earnings effect lasted all of one day and the stock has resumed its downtrend that’s been in place for six weeks. This trade is a bet that the trend will continue, especially in light of the broader market’s weakness. Note that the short call strike sits above Tuesday’s close and the mid-October peak.

If you agree that the stock will continue its downtrend based on the resistance from its 20-day (blue line) and 50-day (red line) moving averages, consider the following credit spread trade that relies on GE staying below $114 (green line) through expiration in 6 weeks:

Buy to Open the GE 8 Dec 116 call (GE231208C116)
Sell to Open the GE 8 Dec 114 call (GE231208C114) for a credit of $0.40 (selling a vertical)

This credit is $0.05 less than the mid-point price of the spread at Friday’s $106.35 close.  Note that I’m giving a little extra room on the entry credit.  Unless GE falls sharply at the open on Monday, you should be able to get close to that price.

The commission on this trade should be no more than $1.30 per spread. Each spread would then yield $38.70. This trade reduces your buying power by $200, making your net investment $161.30 per spread ($200 – $38.70). If GE closes below $114 on Dec. 8, the options will expire worthless and your return on the spread would be 24% ($38.70/$161.30).

Good luck with these trades,

Remember to click here, select Sign Up Now and use Coupon Code D21M to start a monthly subscription to Terry’s Tips for half off.

Any questions?  Email Thank you again for being a part of the Terry’s Tips newsletter.

Happy trading,


October 9, 2023

October 10, 2023

With earnings reports virtually dried up this week and wanting to stay on the bearish side, I had to go back a few weeks to find reports that failed to impress the Street. One name that popped up was a stock that we successfully played (28% profit) for a bullish winner back in March – Darden Restaurants (DRI), the sit-down restaurant chain conglomerate that includes Olive Garden, LongHorn Steakhouse, Capital Grille, and the recently acquired Ruth’s Chris Steak House.

DRI reported earnings a couple of weeks ago. The numbers were solid, as the company beat estimates on both the top and bottom lines. Same-restaurant sales also handily beat expectations. Moreover, sales and profits were higher than a year earlier. The only negatives were slowing growth in its fine-dining holdings and some concern over its aggressive expansion plans amid a potential recessionary environment.

Analysts seemed unmoved by the seemingly positive news. The report was met with a mix of target price upgrades and more numerous downgrades. This left the average target in the $160-170 range, well above Friday’s $137 close. With no ratings changes, analysts remain firmly in the buy/outperform camp.

Perhaps analysts should take closer note of DRI’s stock chart and post-earnings performance. After hitting an all-time high in late July, the stock is down 21% and logged its lowest close in nearly a year on Friday. I’ll point out that the S&P 500 is down just 5% over the same time frame. This slump has been perfectly guided by the 20-day moving average, a trendline the stock hasn’t closed above in more than two months. Also, for technical wonks, the 50-day moving average is crossing below the 200-day moving average, also known as the “death cross.”

This bearish trade is based on the stock’s continued slump even after the good earnings results. With analysts perhaps too optimistic, it’s reasonable to expect some target price reductions, if not some ratings downgrades that could further pressure the share price.

Finally, the 20-day resistance is hard to ignore, which is why we’re playing a call spread with the short call strike sitting just above this trendline. Note that this trade has a smaller return than most because I wanted the short strike to be above the 20-day. Thus, we have a larger cushion of safety and greater probability of profit.

If you agree that the stock will continue its downtrend based on the resistance from its 20-day moving average (blue line), consider the following credit spread trade that relies on DRI staying below $145 (red line) through expiration in 6 weeks:

Buy to Open the DRI 17 Nov 150 call (DRI231117C150)
Sell to Open the DRI 17 Nov 145 call (DRI231117C145) for a credit of $0.85 (selling a vertical)

This credit is $0.02 less than the mid-point price of the spread at Friday’s $136.94 close.  Unless DRI falls sharply at the open on Monday, you should be able to get close to that price.

The commission on this trade should be no more than $1.30 per spread. Each spread would then yield $83.70. This trade reduces your buying power by $500, making your net investment $416.30 per spread ($500 – $83.70). If DRI closes below $145 on Nov. 17, the options will expire worthless and your return on the spread would be 20% ($83.70/$416.30).  

Happy trading,

Jon L

**Our QQQ portfolio is up more than 70% in 2023! Our MSFT portfolio is up around 30%! Overall, we’re beating the S&P. Don’t be left behind … now you can save more than 50% on a monthly subscription to Terry’s Tips. Just Click Here, select Sign Up Now and use Coupon Code D21M to start a monthly subscription to Terry’s Tips for half off.**

September 25, 2023

September 25, 2023

Cold and Soggy

There were a few interesting earnings announcements this week, even though we’re in the quiet period for earnings reports (things start to ramp up again in three weeks). In fact, I had three bearish plays to choose from. That’s a good thing since we currently have three bullish and three bearish trades open, and I feel like the bears need a little more weight after the past week’s Fed-infected price action.

The trade this week is on prepared-food giant General Mills (GIS), which owns several iconic cereal brands along with such names as Betty Crocker, Blue Buffalo, Pillsbury, Progresso, Green Giant and Yoplait. GIS reported earnings numbers on Wednesday before the open that were filled with a lot of “buts.” Sales increased 4% due to higher prices, but volume was lower. Net income beat the consensus expectation but fell 18% from a year ago. GIS executives are bullish on their pet food segment but sales for the quarter were flat. Moreover, some analysts feel that consumers are reaching their limit on rising food costs. And GIS’s CFO said that the company’s operating profit margin will not improve this year.

All in all, it was not a great report, which is perhaps why the stock was hit with a few price target cuts. At least there were no ratings downgrades. Analysts on the whole are neutral toward the stock, while the average target price is in the $70-75 range compared to Friday’s close near $65.

Perhaps analysts would be a bit more skeptical if they took a quick glance at GIS’s chart, which shows the stock plunging 30% in the past four months. This descent has been expertly guided by the 20-day moving average, a trendline the stock has closed above just four times since mid-May. This resistance was evident the two days after earnings this week, when the shares failed to pierce the 20-day with early rallies. Note that the short call strike of our spread sits above this trendline.

If you agree that the stock will continue its downtrend after an uninspiring earnings report and remain below its 20-day moving average (blue line), consider the following credit spread trade that relies on GIS staying below $67.50 (red line) through expiration in 8 weeks:

Buy to Open the GIS 17 Nov 70 call (GIS231117C70)
Sell to Open the GIS 17 Nov 67.5 call (GIS231117C67.5) for a credit of $0.45 (selling a vertical)

This credit is $0.05 less than the mid-point price of the spread at Friday’s $64.82 close.  Unless GIS falls sharply at the open on Monday, you should be able to get close to that price.

The commission on this trade should be no more than $1.30 per spread. Each spread would then yield $43.70. This trade reduces your buying power by $200, making your net investment $156.30 per spread ($200 – $43.70). If GIS closes below $67.50 on Nov. 17, the options will expire worthless and your return on the spread would be 28% ($43.70/$156.30).  

Making 36%

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

This digital 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 For The Free Options Strategy Report & 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.


    Tradier offers an auto-trade service which many Terry's Tips subscribers use to follow our portfolios.

    Member Login  |   Programs and Pricing  |  Testimonials  |  About Us  |  Terms and Conditions  |  Accessibility Statement  |  Privacy Policy  |  Site Map

    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

    © Copyright 2001-2022 Terry's Tips, Inc. dba Terry's Tips
    235 Primrose Lane, Ferrisburgh, VT 05456