(Stock Options Trading) Glimpse of Genius Launch
Every once in a while I post a trade on the blog for all to see.
I don’t have any time table or schedule. Just do it whenever I feel like it. But I am thinking of doing it on a more regular basis.
So I want to launch something called ” Glimpse of Genius”
Fancy name for a simple concept. Basically I am going to release trades on the blog more often. Maybe 1 a month.
These will not be part of the Option Genius Portfolio. This will be in addition to that.
The trades will be market neutral, option selling trades that look interesting to me. I will provide the set up and some reasoning.
I am also setting up a separate email list for those that want to be notified of any adjustments. Adjustments will not be emailed to our main list or posted on the blog. So if you want to be sure you get all the trades, adjustments, and exits please sign up for that email list by clicking here.
Why am I doing this?
Simple. I want to expose more people to option selling and options trades. If you get a Glimpse of Genius and like what you see, then I suspect that you will sign up for Option Genius membership to get even more trades. We do 3-5 trades a month as part of Option Genius.
DISCLAIMER: Keep in mind that I am not recommending these trade to you. I am just providing these for education and entertainment purposes only. I am not responsible if these trades lose money, because they could.
My advice is to papertrade them and see how they work.
Here’s the trade:
Calendar Spread on CVX.
Chevron has been in a trading range for some time. The implied volatility is low and so a Calendar might be a good move.
I am centering my calendar at the 125 strike.
Buy to Open Nov 125 Calls
Sell to Open Oct 125 Calls for a debit of .82
CVX is trading at 125.02 as I type this. The breakevens as you can see in the graph are at 121.92 and 127.89. If CVX breaks out of one of those I will be adding a second Calendar spread as an adjustment. If the trade is ever down 25%, I will exit. I am looking to make 15% of the debit.
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Thanks for the incite.. I have tried Options before but not much Success… I did make some money on the fall of Leman Bros… that was nice but since then have not been in..
I and interested in trying it again..!
I do not know much about options, calls you want the stock to go up and puts the stock to go down? I guess covered calls are safer but you have to purchase 100 shares of a stock
Put me on the follow up list.
please click on the link and sign up. We cannot manually add you to the list.
I would like to know the advantage of a calendar spread compared to other spreads.
check this out for more info on the calendar spread and how it works
cvx has been going up. This is a smart play. The only problem is if we have a correction. I would wait till next week on this. However, the mideast problem equalizes fear of this trade. Why not sell the Nov and buy the Oct? Lowers the cost of the trade?
That would it a reverse calendar and in that case you would make money it it moved outside of the range.
I thank you for posting your trade. I do not know what a Calendar Spread in but hopefully I can learn.
If I can “catch on” to what you do, I certainly would try some trades with you.
The calendar is a harder trade to grasp for beginners. But it is one of the simpler ones to adjust.
I wish I knew exactly what a Calendar trade was.
To begin with: When does it expire. What happens to the ‘Buy’ of the other month?
I would exit this before expiration of the near month. You could also let it expire if it is out of the money and then just sell the one you bought.
I’ll try it.
I would like to see adjustments,if and!
I would like to see adjusments/ Thank You.
I would sincerely like to follow your trades if you pls make me understand how you will close these trades. opn which u r buying will have to be sold and then opn which u r selling now will have to be bought at a later date. is that’s the way or some other way. pls clarify it to me will be grateful t u tks
Make sure to join the list and we will show how the trade is closed
Thank you for doing this for people who would like to paper trade. Please sign me up.
Your welcome. I hope to help a lot of people see that options are not as scary as they are made out to be. 🙂
I dunno . I am still concerned that one huge , unexpected move in a market can wipe out all , or most of , the previous gains .
Thanks for the post, looking forward to the next one.
Are you planning to do the same ” Glimpse of Genius ” procedure for the
Weekly RUT trades ?
No, I dont think so.