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.