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Archived Trades

No room for my legs and I’m under 6 feet tall.

The only reason the airlines can continue to get away with this is due to the heavy traffic. It seems that everyone wants to travel somewhere.  On a recent trip across the midwest I noticed that people are willing to put up with crowds and crowds are wanting to fly. It seems that young people are not concerned about retirement but the experiences of life. So rather than opt to start a Roth IRA they are traveling the world. It is for these reasons we are playing BA two ways this week. As this Friday is the 13th we approach with caution. We are buying BA at the $350 to $352 level and selling the December 13, 350 calls for $4.50 to $5.00.  We are also selling the December $340 Puts.  The put will bring you $70 per 100 shares and is the more conservative play as we don’t see the stock drawing back down that far.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Best In Show, the bulldog.

When you are picking team members you want the best available at the time. Now no guarantee that if you draft the best player that they will perform, however the odds are usually in your favor. It is for this reason we are looking at JPM, selling the December 6, 129 PUTS. We have a slight pullback this morning and we believe in JPM long term. We are also seeing some movement in FB, still a major player in the acquisition of information, especially all the advertising over the holidays, so we are selling the December 6, 195 puts. We have seen BA come down some but we believe the holiday travels will add to many bottom lines, so we are also selling the December 6,  352.50 Puts. You may ask why all puts at the moment, well we want the stocks we like to come to us. Being up above 28,000 on the DOW we are patient investors. Keep abreast of any changes during the week. As numbers come in from the shopping holiday we will take advantage of big moves either way.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Winning is a process!

Learning to do the same thing over and over can seem boring, but not when you make money doing it. Learning to use options is a process and learning the process can increase your 401K balances throughout the year. Last week we again had a full week of winners. It is the process that tells us to stay with our winners. We are selling the SLB $35.50 11/29 PUTS. We are looking to get .20 to .25 cents per share this week.  If we are PUT the stock we’ll be in it below the $35.50 mark.  We believe the stock will continue to float and provide continued option income. As many are rushing online and to the mall we are aware of expectations, so we are looking to those firms that profit from the event itself, such as FB and its advertising.  We are buying FB here at $200 and selling the 11/29 $200 calls for $2.00. A 1% return for the week. This puts us in the stock at $198, however we expect that by the end of the week you’ll be called away.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Don’t Chase…

As the market reaches new highs we suggest you don’t chase the market. Look for opportunities that arise from earnings misses, market movements, and outliers . This is why we are selling the SLB $34 11/22 Puts. The stock has a 6% dividend and this would be a good entry point. For those that are still holding SLB we will look to sell the 11/29 .37 Calls as we see a rise in price off the morning low. Sell the Call around $34.75.  We are also looking in the mirror with FB. We previously got called away. So we are selling the 11/22 $190 puts.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

The Iranians find more oil, so how do they sell it.

As we see many move for the new green deal the price of oil remains low. We are not seeing the days of $100 per barrel. The lack of pricing has caused many companies to downsize, but oil is not the start up of the future. The companies that have been around for many years are navigating through this period of low prices. This is why we continue to like SLB. The dividend is north of 6% and oil is an inflation hedge, so companies that continue to support the industry with their expertise are few. We are selling the SLB $35 puts and we are buying the stock here and waiting for a slightly positive day to sell the calls against that position. We can see 2% movement in the stock on any given day. We are seeing that to the downside and are taking advantage of the drop in price.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

The Consumer is strong!

The holidays are upon us and we are seeing the discounts come flying. All the retailers are looking to make their yearly goals by discounting, special hourly sales, and much more. This is also true for MCD. This morning instead of BOGO we see BOGO for $1.00.  This is subtle but adds to the bottom line. The all day breakfast is still strong. It is for these reasons we continue to sell PUTS on MCD. Our winners last week included MCD, so we are selling the MCD $192.50 for $1.01 . This puts you in the stock at $191.50. A good entry point down from $216 or so.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Chip off the block

At the end of last year NVDA took a dive with the rest of the market. Now it’s just 2% from the high at that time. The market has recovered and we are seeing strength in the gamer market. NVDA is the chip of choice and earnings are next week. We will see some play this week as investors get ready for earnings. We believe the earnings will be positive. We are buying NVDA here at the $206 mark and selling the November 08 $207.50 calls for roughly $2.50 per share. That would give us $210 or $4 per share profit if called away. It would also give us the opportunity to sell the call again into earnings week if not called away.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Expensive to play with Big Mac!

The CEO of MCD has been let go due to violation of corporate policy. It has been an expensive violation for the MCD shareholders. This is an opportunity for the long term investor. So we are selling the Nov 8, $185 puts.  We think the acquisition of a new CEO will bring stability to the firm. We don’t know when that may happen but we do know that MCD”S has been around a long time. We believe the $185 entry point will be roughly 13% down from just before recent earnings. We don’t believe anyone will pass on their intended stop at MCD”s because of recent events.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Rates going lower!

You’ve heard the expression that a rising tide raises all ships. We have seen a rise in the bank stocks and considering the rates are going lower you would expect that to impact earnings. We believe this will be the case but as the lower rates stimulate mortgage refinancing, home purchases, and mergers we don’t expect a pullback in the short term.  We are selling the November 1, JPM 120 PUTS, We are now an owner of the worlds biggest restaurant with MCD, it was put to us at $197.50 so we are selling the NOV 1, $197.50 calls. We also believe that SLB will continue to move as the market floats, with the 6% dividend and the strength of the premiums, we are selling the November 1, 33.50 PUTS.  As you see the first part of the China deal is written up and the market is holding tight.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Respect the McMuffin!

This morning we see that McD’s has pulled back due to its earnings call.  We see that MCD is the dominant fast food restaurant in the nation. We want to see if the pullback will continue, so we are selling the October 25, 197.50 Puts.  We believe that is a good entry point should the stock be PUT to us.  We have already called for buying MCD under $202 and selling the $202.50 October 25, calls.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.