Ophir Gottlieb

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The Volatility Option Trade After Earnings in NVIDIA NVIDIA Corporation (NASDAQ:NVDA) : The Volatility Option Trade After Earnings Date Published: 2017-08-10 LEDE This is a slightly advanced option trade that bets on volatility for a period that starts one-day after NVIDIA Corporation (NASDAQ:NVDA) earnings and lasts for the 6 calendar days to follow, that has been a winner for the last 2 years. We note the use of strict risk controls in this analysis. Nvidia has earnings due out today (8-10-2017) after the close. One day after earnings would be 8-11-2017. NVIDIA Corporation (NASDAQ:NVDA) Earnings Trading the bullish momentum pattern ahead of earnings with a long call and closing yesterday (one-day before earnings) turned out to be a nice winner -- Nvidia stock followed its pattern. Now we look at another strategy that owns options, but this time takes no direction bias. In NVIDIA Corporation, irrespective of whether the earnings move was large or small, if we waited one-day after earnings and then bought an one-week straddle (using weekly options), the results were quite strong. This trade opens one-day after earnings were announced to try to find a stock that moves a lot after the earnings announcement. Simply owning options after earnings, blindly, is likely not a good trade, but hand-picking the times and the stocks to do it in can be useful. We can test this approach without bias with a custom option back-test. Here is the timing set-up around earnings: Rules * Open the long straddle one-calendar day after earnings. * Close the straddle 7 calendar days after earnings. * Use the options closest to 7 days from expiration (but at least 7-days). This is a straight down the middle volatility bet -- this trade wins if the stock is volatile the week following earnings and it will stand to lose if the stock is not volatile. This is not a silver bullet -- it's a trade that needs to be carefully examined. But, this is a stock direction neutral strategy, which is to say, it wins if the stock moves up or down -- it just has to move. RISK CONTROL Since blindly owning volatility can be a quick way to lose in the option market, we will apply a tight risk control to this analysis as well. We will add a 40% stop loss and a 40% limit gain. In English, at the close of every trading day, if the straddle is up 40% from the price at the start of the trade, it gets sold for a profit. If it is down 40%, it gets sold for a loss. This also has the benefit of taking profits if there is volatility early in the week rather than waiting to close 7-days later. RESULTS If we bought the straddle in NVIDIA Corporation (NASDAQ:NVDA) over the last two-years but only held it after earnings we get these results: NVDA: Long Straddle % Wins: 71% Wins: 5 Losses: 2 % Return: 167.7% Tap Here to See the Back-test We see a 167.7% return, testing this over the last 7 earnings dates in NVIDIA Corporation. That's a total of just 42 days (6 days for each earnings date, over 7 earnings dates). That's a annualized rate of 1,457%. Looking at Averages The overall return was 167.7%; but the trade statistics tell us more with average trade results: ➡ The average return per trade was 21.06% over 6-days. ➡ The average return per winning trade was 40.69% over 6-days. ➡ The average return per losing trade was -28.02% over 6-days. Looking at the Last Year While we just looked at a multi-year back-test, we can also hone in on the most recent year with the same test: NVDA: Long Straddle % Wins: 75% Wins: 3 Losses: 1 % Return: 126% Tap Here to See the Back-test Now we see a 126% return over the last year and a 75% win-rate. ➡ The average return for the last year per trade was 23.99% over 6-days. ➡ The average return for the last year per winning trade was 46.66% over 6-days. ➡ The average return per losing trade was -43.99% over 6-days. An Alternative For the the more advanced option trader, a similar approach to this strategy would be to sell a strangle around this straddle turning it into an iron butterfly. You can test this approach in the CML Trade Machine (option back-tester). WHAT HAPPENED This is it -- this is how people profit from the option market -- finding trading opportunities that avoid earnings risk and work equally well during a bull or bear market. To see how to do this for any stock we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work

The Volatility Option Trade After Earnings in NVIDIA Corporation NVIDIA Corporation (NASDAQ:NVDA) : The Volatility Option Trade After Earnings Date Published: 2017-08-10 LEDE This is a slightly advanced option trade that bets on volatility for a period that starts one-day after NVIDIA Corporation (NASDAQ:NVDA) earnings and lasts for the 6 calendar days to follow, that has been a winner for the last 2 years. We note the use of strict risk controls in this analysis. Nvidia has earnings due out today (8-10-2017) after the close. One day after earnings would be 8-11-2017. NVIDIA Corporation (NASDAQ:NVDA) Earnings Trading the bullish momentum pattern ahead of earnings with a long call and closing yesterday (one-day before earnings) turned out to be a nice winner -- Nvidia stock followed its pattern. Now we look at another strategy that owns options, but this time takes no direction bias. In NVIDIA Corporation, irrespective of whether the earnings move was large or small, if we waited one-day after earnings and then bought an one-week straddle (using weekly options), the results were quite strong. This trade opens one-day after earnings were announced to try to find a stock that moves a lot after the earnings announcement. Simply owning options after earnings, blindly, is likely not a good trade, but hand-picking the times and the stocks to do it in can be useful. We can test this approach without bias with a custom option back-test. Here is the timing set-up around earnings: Rules * Open the long straddle one-calendar day after earnings. * Close the straddle 7 calendar days after earnings. * Use the options closest to 7 days from expiration (but at least 7-days). This is a straight down the middle volatility bet -- this trade wins if the stock is volatile the week following earnings and it will stand to lose if the stock is not volatile. This is not a silver bullet -- it's a trade that needs to be carefully examined. But, this is a stock direction neutral strategy, which is to say, it wins if the stock moves up or down -- it just has to move. RISK CONTROL Since blindly owning volatility can be a quick way to lose in the option market, we will apply a tight risk control to this analysis as well. We will add a 40% stop loss and a 40% limit gain. In English, at the close of every trading day, if the straddle is up 40% from the price at the start of the trade, it gets sold for a profit. If it is down 40%, it gets sold for a loss. This also has the benefit of taking profits if there is volatility early in the week rather than waiting to close 7-days later. RESULTS If we bought the straddle in NVIDIA Corporation (NASDAQ:NVDA) over the last two-years but only held it after earnings we get these results: NVDA: Long Straddle % Wins: 71% Wins: 5 Losses: 2 % Return: 167.7% Tap Here to See the Back-test We see a 167.7% return, testing this over the last 7 earnings dates in NVIDIA Corporation. That's a total of just 42 days (6 days for each earnings date, over 7 earnings dates). That's a annualized rate of 1,457%. Looking at Averages The overall return was 167.7%; but the trade statistics tell us more with average trade results: ➡ The average return per trade was 21.06% over 6-days. ➡ The average return per winning trade was 40.69% over 6-days. ➡ The average return per losing trade was -28.02% over 6-days. Looking at the Last Year While we just looked at a multi-year back-test, we can also hone in on the most recent year with the same test: NVDA: Long Straddle % Wins: 75% Wins: 3 Losses: 1 % Return: 126% Tap Here to See the Back-test Now we see a 126% return over the last year and a 75% win-rate. ➡ The average return for the last year per trade was 23.99% over 6-days. ➡ The average return for the last year per winning trade was 46.66% over 6-days. ➡ The average return per losing trade was -43.99% over 6-days. An Alternative For the the more advanced option trader, a similar approach to this strategy would be to sell a strangle around this straddle turning it into an iron butterfly. You can test this approach in the CML Trade Machine (option back-tester). WHAT HAPPENED This is it -- this is how people profit from the option market -- finding trading opportunities that avoid earnings risk and work equally well during a bull or bear market. To see how to do this for any stock we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work

My goal is really to spur thought. Basically your reaction and thoughtfulness is what I hope to create with the Trade Machine. Most use the "insights" as a guide, to tweak, optimize, adjust, and then apply. So, short answer, I do it so you can find the best results!

The Volatility Option Trade After Earnings in Facebook Inc Facebook Inc (NASDAQ:FB) : The Volatility Option Trade After Earnings Date Published: 2017-08-4 LEDE This is a slightly advanced option trade that starts two calendar days after Facebook Inc (NASDAQ:FB) earnings and lasts for the 5 calendar days to follow, that has been a winner for the last 3 years. Facebook Inc (NASDAQ:FB) Earnings For Facebook Inc, irrespective of whether the earnings move was up or down, if we waited one-day after the stock move, and then sold an one-week at out of the money iron condor (using weekly options), the results were quite strong. This trade opens two calendar after earnings were announced to try to let the stock find equilibrium after the earnings announcement. We can test this approach without bias with a custom option back-test. Here is our earnings set-up: Rules * Open the short iron condor two calendar days after earnings * Close the iron condor 7 calendar days after earnings * Use the options closest to 7 days from expiration (but at least 7-days). And a note before we see the results: This is a straight down the middle volatility bet -- this trade wins if the stock is not volatile the week following earnings and it will stand to lose if the stock is volatile. RESULTS If we sold this 40/20 delta iron condor in Facebook Inc (NASDAQ:FB) over the last three-years but only held it after earnings we get these results: FB: Short 40 Delta / 20 Delta Iron Condor % Wins: 67% Wins: 8 Losses: 4 % Return: 49.5% We see a 49.5% return, testing this over the last 12 earnings dates in Facebook Inc. That's a total of just 60 days (5 days for each earnings date, over 12 earnings dates). We can also see that this strategy hasn't been a winner all the time, rather it has won 8 times and lost 4 times, for a 67% win-rate. Setting Expectations While this strategy had an overall return of 49.5%, the trade details keep us in bounds with expectations: ➡ The average percent return per trade was 7.78% over 5-days. WHAT HAPPENED This is it -- this is how people profit from the option market -- it's not about guessing; ever. We hope, if nothing else, you have learned about Facebook Inc (NASDAQ:FB) and the intelligence and methodology of option trading and this idea of equilibrium right after earnings. To see how to find the best strategy for any stock we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work Thanks for reading. Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Hi Jamie, The $49 version will always be available, but it is no longer the Pro version, which right simply means no custom strategies, but in the future will mean quite a bit (like scanning, IV ranks, technical indicators, etc).

We have released average win %, average loss % and average return % as requested by Steady Options members! Thanks, everyone.

Looks good to me too (HD)

Trading Earnings Optimism and Momentum With Options in NVIDIA Corporation NVIDIA Corporation (NASDAQ:NVDA) : Trading Earnings Optimism With Options Date Published: 2017-07-20 PREFACE There is a powerful pattern of optimism and momentum in NVIDIA Corporation (NASDAQ:NVDA) stock right before of earnings, and we can capture that pattern by looking at returns in the option market. If ever there was a momentum stock, Nvidia fits the bill. It's historic rise has come on the back of legitimate fundamental growth, but for now, we want to focus on momentum, and there is a fascinating pattern that has emerged. The strategy won't work forever (it really won't), but in the last 3-years it has won 11 times and only lost once. Over the last two-years it has won 8 times and never lost. But, after we look at this trade, we have a wrinkle which has made it even better for those looking to take less risk. We see a projected date of 8-10-2017 for Nvidia earnings, but that date is not confirmed. You can stay up to date on this news by looking to Nvidia's investor relations site. PREMISE The premise is simple -- one of the least recognized but most important phenomena surrounding this bull market is the amount of optimism, or upward momentum, that sets in the week before an earnings announcement. Now we can see it in NVIDIA Corporation. The Options Optimism Trade Before Earnings in NVIDIA Corporation Let's look at the results of buying a monthly call option in NVIDIA Corporation 7-days before earnings and selling the call one day before the earnings announcement. Here's the set-up in great clarity; again, note that the trade closes before earnings, so this trade does not make a bet on the earnings result. Now, unlike many of our other set-ups, this is in fact a straight down the middle bullish bet -- this absolutely takes on directional stock risk, so let's be conscious of that before we see the results, because they are mind bending. Here are the results over the last three-years in NVIDIA Corporation: NVDA: Long 50 Delta Call % Wins: 91.7% Wins: 11 Losses: 1 % Return: 286% We see a 286% return, testing this over the last 12 earnings dates in NVIDIA Corporation. We can also see that this strategy hasn't been a winner all the time, rather it has won 11 times and lost 1 time, for a 91.7% win-rate. Checking More Time Periods in NVIDIA Corporation Now we can look at just the last year as well: NVDA: Long 50 Delta Call % Wins: 100% Wins: 4 Losses: 0 % Return: 60.1% We're now looking at 60.1% returns, on 4 winning trades and 1 losing trade. It's worth noting again that we are only talking about one-weeks of trading for each earnings release, so this is 60.1% in just 4-weeks of total trading. MAKING IT BETTER Another approach here is to turn that naked long call into a call spread. The win-rates are identical, but the trade simply risks a little less. Here are the results over the last year for the 40/20 debit call spread: NVDA: Long 50 Delta Call % Wins: 100% Wins: 4 Losses: 0 % Return: 53.6% For the record, it also has 11 wins and 1 loss over the last 3-years (Back-test link), just like the naked long call. Also note that this is only "less risk" if size is the same by contract. So, owning 10 calls is more risky than owning 10 call spreads because there is less capital at risk. WHAT HAPPENED Bull markets have quirks, or personalities if you like. The personality of this bull market is one that shows optimism before earnings -- irrespective of the actual earnings result. That has been a tradable phenomenon in NVIDIA Corporation. To see how to do this for any stock we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work Thanks for reading. The author is long shares of Nvidia at the time of this writing. Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Trading Volatility: Option Trading Before Earnings in Starbucks Corporation Starbucks Corporation (NASDAQ:SBUX): Avoid Bear Market Risk: Option Trading Before Earnings Date Published: 2017-07-18 Preface With the market's direction becoming tenuous, we can explore option trading opportunities in Starbucks Corporation (NASDAQ:SBUX) that do not rely on stock direction but do trade around earnings. It turns out, over the long-run, for stocks with certain tendencies like Starbucks Corporation, there is a clever way to trade market anxiety or market optimism before earnings announcements with options. This approach has returned 112% with a total holding period of just 84 days, or a annualized rate of 487%. Now that's worth looking into. Starbucks earnings are expected 7-27-2017, after the market closes. The Trade Before Earnings What a trader wants to do is to see the results of buying an at the money straddle a few days before earnings, and then sell that straddle just before earnings. Ideally we would see a high win-rate, a high return, and small losses when the trade goes wrong, and we get all of that when examining Starbucks. This trade is not a panacea, which is to say, we have to test it, stock by stock, to see when and why it worked. Let's start with Starbucks. Here is the setup: We are testing opening the position 6 calendar days before earnings and then closing the position the day of earnings. Since Starbucks reports earnings after the market closes, this is not making any earnings bet. This is not making any stock direction bet. Once we apply that simple rule to our back-test, we run it on an at-the-money straddle: Returns If we did this long at-the-money (also called '50-delta') straddle in Starbucks Corporation (NASDAQ:SBUX) over the last three-years but only held it before earnings we get these results: SBUX Long At-the-Money Straddle % Wins: 83.3% Wins: 10 Losses: 2 % Return: 112% % Annualized: 487% See this back-test in action We see a 112% return, testing this over the last 12 earnings dates in Starbucks Corporation. That's a total of just 84 days (7 days for each earnings date, over 12 earnings dates). That's a annualized rate of 487%. We can also see that this strategy hasn't been a winner all the time, rather it has won 10 times and lost 2 times, for am 83% win-rate and again, that 112% return in less than two-full months of trading. Looking at Recent Results We can do this same test but look at the last year, rather than the last 3-years. Here are those results: SBUX Long At-the-Money Straddle % Wins: 83.3% Wins: 4 Losses: 0 % Return: 62.1% % Annualized: 809% See this back-test in action This pre-earnings long volatility trade has stare to find some momentum and has won each of the last four earnings cycles after going with 2 wins and 2 losses in the year prior (2-years ago). MORE TO IT THAN MEETS THE EYE While this strategy is benefiting from the implied volatility rise into earnings, what it's really doing is far more intelligent. The option prices for the at-the-money straddle will show very little time decay over this 7-day period, so what this strategy really does is buy "seven days" of potential stock movement with what is actually fairly small downside risk. WHAT HAPPENED This is it -- this is how people profit from the option market -- finding trading opportunities that avoid earnings risk and work equally well during a bull or bear market. To see how to do this for any stock we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work Thanks for reading. Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Trading Volatility: Option Trading Before Earnings in Starbucks Corporation Starbucks Corporation (NASDAQ:SBUX): Avoid Bear Market Risk: Option Trading Before Earnings Date Published: 2017-07-18 Preface With the market's direction becoming tenuous, we can explore option trading opportunities in Starbucks Corporation (NASDAQ:SBUX) that do not rely on stock direction but do trade around earnings. It turns out, over the long-run, for stocks with certain tendencies like Starbucks Corporation, there is a clever way to trade market anxiety or market optimism before earnings announcements with options. This approach has returned 112% with a total holding period of just 84 days, or a annualized rate of 487%. Now that's worth looking into. Starbucks earnings are expected 7-27-2017, after the market closes. The Trade Before Earnings What a trader wants to do is to see the results of buying an at the money straddle a few days before earnings, and then sell that straddle just before earnings. Ideally we would see a high win-rate, a high return, and small losses when the trade goes wrong, and we get all of that when examining Starbucks. This trade is not a panacea, which is to say, we have to test it, stock by stock, to see when and why it worked. Let's start with Starbucks. Here is the setup: We are testing opening the position 6 calendar days before earnings and then closing the position the day of earnings. Since Starbucks reports earnings after the market closes, this is not making any earnings bet. This is not making any stock direction bet. Once we apply that simple rule to our back-test, we run it on an at-the-money straddle: Returns If we did this long at-the-money (also called '50-delta') straddle in Starbucks Corporation (NASDAQ:SBUX) over the last three-years but only held it before earnings we get these results: SBUX Long At-the-Money Straddle % Wins: 83.3% Wins: 10 Losses: 2 % Return: 112% % Annualized: 487% See this back-test in action We see a 112% return, testing this over the last 12 earnings dates in Starbucks Corporation. That's a total of just 84 days (7 days for each earnings date, over 12 earnings dates). That's a annualized rate of 487%. We can also see that this strategy hasn't been a winner all the time, rather it has won 10 times and lost 2 times, for am 83% win-rate and again, that 112% return in less than two-full months of trading. Looking at Recent Results We can do this same test but look at the last year, rather than the last 3-years. Here are those results: SBUX Long At-the-Money Straddle % Wins: 83.3% Wins: 4 Losses: 0 % Return: 62.1% % Annualized: 809% See this back-test in action This pre-earnings long volatility trade has stare to find some momentum and has won each of the last four earnings cycles after going with 2 wins and 2 losses in the year prior (2-years ago). MORE TO IT THAN MEETS THE EYE While this strategy is benefiting from the implied volatility rise into earnings, what it's really doing is far more intelligent. The option prices for the at-the-money straddle will show very little time decay over this 7-day period, so what this strategy really does is buy "seven days" of potential stock movement with what is actually fairly small downside risk. WHAT HAPPENED This is it -- this is how people profit from the option market -- finding trading opportunities that avoid earnings risk and work equally well during a bull or bear market. To see how to do this for any stock we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work Thanks for reading. Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Tesla reports their sales volume numbers every quarter in an 8-K, which is how every other company in the world releases their pro-forma earnings (earnings date release). We use that date as their earnings dates, honoring their mode of operation with SEC filings. Having said that, we need to be really clear about that. There are no other companies like Tesla that we are aware of.

The Timed Option Trade in JPMorgan Options That Has Won for 3-Straight Years Date Published: 2017-07-09 Written by Ophir Gottlieb LEDE JPMorgan Chase & Co.(NYSE:JPM) has earnings due out on July 14, 2017 before the market opens. But, the real opportunity with options isn't earnings -- it's right after earnings -- and we see a trade that has won for three-straight years without a single loss, returning 167%. The Trade After Earnings Selling a put spread every month in a stock that is rising, in hindsight, obviously looks like a great idea. But, there is a lot of risk in that trade, namely, the risk of an abrupt stock drop and a market sell-off that takes all stocks with it. So, we want to reduce the risk while not affecting the returns. One of our go to trade set-ups starts by asking the question if trading every month is worth it -- is it profitable -- is it worth the risk? There's an action plan that measures this exactly, and the results are powerful not just for Red Hat Inc, but for JPMorgan Chase & Co. Let's test the idea of selling a put spread only in the month after earnings. Here's what we mean: Our idea here is that after earnings are reported, and after the stock does all of its gymnastics, up or down, that two-days following the earnings move and for the next month, the stock is then in a quiet period. If it gapped down -- that gap is over. If it beat earnings, the downside move is already likely muted. Here is the set-up: More explicitly, the rules are: Rules * Open short put spread 2 calendar days after earnings. * Close short put spread 30 calendar days later. * Use the option that is closest to but greater than 35-days away from expiration. And here are the results of implementing this much finer strategy over the last three-years: JPM: Short 35/10 Delta Put Spread % Wins: 100% Wins: 12 Losses: 0 % Return: 167% Tap Here to See the Actual Back-test We see a 167% winner that only traded the month following earnings and took no risk at all other times. The trade has won all 12 of the last 12 earnings cycles times, or a 100% win-rate. Here is how the strategy has done over the last year: JPM: Short 35/10 Delta Put Spread % Wins: 100% Wins: 4 Losses: 0 % Return: 69.3% Tap Here to See the Actual Back-test Now we a 69.3% return on just four full months of trading. Here's what we see over the last six-months: JPM: Short 35/10 Delta Put Spread % Wins: 100% Wins: 2 Losses: 0 % Return: 36.4% Tap Here to See the Actual Back-test Now we see a 36.4% return over the last two earnings cycles, winning both times. The results are incredibly consistent, so much so that we need to take a step back and still examine the potential pitfalls here. NO GUARANTEES There are no guarantees to this trade, but it does appear to a very high probability investment, but even as such, it does have some drawbacks. If we look at the trade six-months ago in this back-test, we actually tested this trade (January 2017): That is, selling an 81.5/76.5 put spread @ $1.00. This trade, as constructed, had a maximum win amount of $1 (the credit received), but it had a maximum loss of $4, which is the difference in the strikes (81.5 - 76.5) minus the credit received ($1). That means the max gain: max loss ratio was 1:4. And yes, the trade worked out well, closing that February for $0.10. But, we do, at the very least, need to be aware of the trade we are examining. TAKING RISK OFF One clever way to get that max profit: max loss ratio back to something more manageable, is to put in a stop loss at the exact amount of credit we received. In Trade Machine, the way to test this is to put in a 100% stop loss, like this: In English, if we took that same trade from January 2017, and put a stop loss in at $2 (which is a 100% loss relative to the $1 credit), then our max gain would have been $1 (the credit) and the max loss would have been $1 (the credit - stop). All of a sudden, we have a 1:1 max gain: max loss trade, and over the last year, which was four post earnings trades, the results are identical to the trade without a stop loss. Not too shabby. WHAT HAPPENED This is it. This is just one of the ways people profit from the option market -- optimize returns and reduce risk. To see how to do this for any stock and for any strategy, including covered calls, with just the click of a few buttons, we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work Thanks for reading. Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition. The author has no position in JPMorgan Chase & Co as of this writing. Back-test Link

The Timed Option Trade in JPMorgan Options That Has Won for 3-Straight Years Date Published: 2017-07-09 Written by Ophir Gottlieb LEDE JPMorgan Chase & Co.(NYSE:JPM) has earnings due out on July 14, 2017 before the market opens. But, the real opportunity with options isn't earnings -- it's right after earnings -- and we see a trade that has won for three-straight years without a single loss, returning 167%. The Trade After Earnings Selling a put spread every month in a stock that is rising, in hindsight, obviously looks like a great idea. But, there is a lot of risk in that trade, namely, the risk of an abrupt stock drop and a market sell-off that takes all stocks with it. So, we want to reduce the risk while not affecting the returns. One of our go to trade set-ups starts by asking the question if trading every month is worth it -- is it profitable -- is it worth the risk? There's an action plan that measures this exactly, and the results are powerful not just for Red Hat Inc, but for JPMorgan Chase & Co. Let's test the idea of selling a put spread only in the month after earnings. Here's what we mean: Our idea here is that after earnings are reported, and after the stock does all of its gymnastics, up or down, that two-days following the earnings move and for the next month, the stock is then in a quiet period. If it gapped down -- that gap is over. If it beat earnings, the downside move is already likely muted. Here is the set-up: More explicitly, the rules are: Rules * Open short put spread 2 calendar days after earnings. * Close short put spread 30 calendar days later. * Use the option that is closest to but greater than 35-days away from expiration. And here are the results of implementing this much finer strategy over the last three-years: JPM: Short 35/10 Delta Put Spread % Wins: 100% Wins: 12 Losses: 0 % Return: 167% Tap Here to See the Actual Back-test We see a 167% winner that only traded the month following earnings and took no risk at all other times. The trade has won all 12 of the last 12 earnings cycles times, or a 100% win-rate. Here is how the strategy has done over the last year: JPM: Short 35/10 Delta Put Spread % Wins: 100% Wins: 4 Losses: 0 % Return: 69.3% Tap Here to See the Actual Back-test Now we a 69.3% return on just four full months of trading. Here's what we see over the last six-months: JPM: Short 35/10 Delta Put Spread % Wins: 100% Wins: 2 Losses: 0 % Return: 36.4% Tap Here to See the Actual Back-test Now we see a 36.4% return over the last two earnings cycles, winning both times. The results are incredibly consistent, so much so that we need to take a step back and still examine the potential pitfalls here. NO GUARANTEES There are no guarantees to this trade, but it does appear to a very high probability investment, but even as such, it does have some drawbacks. If we look at the trade six-months ago in this back-test, we actually tested this trade (January 2017): That is, selling an 81.5/76.5 put spread @ $1.00. This trade, as constructed, had a maximum win amount of $1 (the credit received), but it had a maximum loss of $4, which is the difference in the strikes (81.5 - 76.5) minus the credit received ($1). That means the max gain: max loss ratio was 1:4. And yes, the trade worked out well, closing that February for $0.10. But, we do, at the very least, need to be aware of the trade we are examining. TAKING RISK OFF One clever way to get that max profit: max loss ratio back to something more manageable, is to put in a stop loss at the exact amount of credit we received. In Trade Machine, the way to test this is to put in a 100% stop loss, like this: In English, if we took that same trade from January 2017, and put a stop loss in at $2 (which is a 100% loss relative to the $1 credit), then our max gain would have been $1 (the credit) and the max loss would have been $1 (the credit - stop). All of a sudden, we have a 1:1 max gain: max loss trade, and over the last year, which was four post earnings trades, the results are identical to the trade without a stop loss. Not too shabby. WHAT HAPPENED This is it. This is just one of the ways people profit from the option market -- optimize returns and reduce risk. To see how to do this for any stock and for any strategy, including covered calls, with just the click of a few buttons, we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work Thanks for reading. Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition. The author has no position in JPMorgan Chase & Co as of this writing. Back-test Link

UPDATE As of tomorrow (7-6-2017) before the opening bell, we are upgrading our risk calculations. The details follow below -- for those that prefer not to read the details and just want the "what changed?" part, here is the takeaway: Quick Version * Long only strategies are not affected. * We are switching from RegT Maintenance Margin to RegT SMA (Special Memorandum Account) based on feedback from members and the realities of margin calculations at brokerages and CBOE's best practices. * For most short strategies, including credit spreads, the net effect is that the amount risked number decreases, causing the percentage returns to become more positive or more negative, depending on if they started out as positive or negative to begin with. * For covered calls, the stock position margin actually rises, so this strategy will see an increased amount risked, and subsequent decrease in positive or negative returns. DETAILS We have posted details in a full blown example file on the Discover Tab. Here is the link, and below we paste the actual content. Examples of 'Amount Risked' For Option Strategies All strategies shown use SBUX on Jan 4, 2016. The stock closed at $58.26. All option strategies use either 50 delta or 25 delta options. Executions are mid market, commissions are set to $0. Long Call Long SBUX Feb5`16 58.5 Call $1.94 1x Risked = 100 * (1.94) = $194 + Commissions Long Put Long SBUX Feb5`16 58.5 Put $2.36 1x Risked = 100 * (2.36) = $2.36 + Commissions Long Covered Call Long SBUX Stock $58.26 100x Short SBUX Feb5`16 58.5 Call $1.94 1x Risked = 100 * (50% * 58.26 - 1.94) = $2,719 + Commissions Long Call Spread Long SBUX Feb5`16 58.5 Call $1.94 1x Short SBUX Feb5`16 62 Call $0.62 1x Risked = 100 * (1.94-0.62) = $132 + Commissions Long Put Spread Long SBUX Feb5`16 58.5 Put $2.36 1x Short SBUX Feb5`16 62 Put $0.98 1x Risked = 100 * (2.36-0.98) = $138 + Commissions Long 50 Delta Straddle Long SBUX Feb5`16 58.5 Call $1.94 1x Long SBUX Feb5`16 58.5 Put $2.36 1x Risked = 100 * (1.94+2.36) = $430 + Commissions Long 50-25 Delta Strangle Long SBUX Feb5`16 58.5 Call $1.94 1x Long SBUX Feb5`16 54.5 Put $0.98 1x Risked = 100 * (1.94+0.98) = $292 + Commissions Long 50 / 25 Condor Long SBUX Feb5`16 58.5 Call $1.94 1x Short SBUX Feb5`16 62 Call $0.62 1x Long SBUX Feb5`16 58.5 Put $2.36 1x Short SBUX Feb5`16 62 Put $0.98 1x Risked = 100 * (1.94-0.62+2.36-0.98) = $270 + Commissions Short 50 delta Call Short SBUX Feb5`16 58.5 Call $1.94 1x Risked = 100 * ( 20% * 58.26 - 0.24{out_of_money_amount}) = $1141.20 + Commissions Short 25 delta Call Short SBUX Feb5`16 62 Call $0.62 1x Risked = 100 * Max(10% * 58.26, 20% * 58.26 - out_of_money_distance) = $971.20 + Commissions Risked = 100 * (20% * 58.26 - 3.74) = 791.20 Short 5 delta Call Short SBUX Feb5`16 67 Call $0.10 1x Risked = 100 * Max(10% * 58.26, 20% * 58.26 - out_of_money_distance) = $971.20 + Commissions Risked = 100 * (20% * 58.26 - 8.74) = 291.20 LESS Than 10% of stock, so: 10% * 58.26 * 100 = $582.60 Short 25 delta Put Short SBUX Feb5`16 54.5 Put $0.98 1x Risked = 100 * Max(10% * 58.26, 20% * 58.26 - out_of_money_distance) = $971.20 + Commissions Risked = 100 * (20% * 58.26 - 3.76) = 789.20 Short Covered Call Short SBUX Stock 2016-01-04 $58.26 100x Long SBUX Feb5`16 58.5 Call $1.94 1x Risked = 100 * (50% * 58.26 + 1.94) = $2,719 + Commission Short Call Spread Long 25 delta Call Short 50 delta Call Long SBUX Feb5`16 62 Call $0.62 1x Short SBUX Feb5`16 58.5 Call $1.94 1x Risked = 100 * (strike_distance(62-58.5) - premium_diff(1.94-0.62)) 100 * (3.5 - 1.32) = $218 Short Put Spread Long 25 delta Put Short 50 delta Put Long SBUX Feb5`16 58.5 Put $2.36 1x Short SBUX Feb5`16 54.5 Put $0.98 1x Risked = 100 * (strike_distance(58.5-54.5) - premium_diff(2.36-0.98)) 100 * (4 - 1.38) = $262 Short 25 delta Strangle Short 25 delta Call Short SBUX Feb5`16 62 Call $0.62 1x CallRisked = 100 * Max(10% * 58.26, 20% * 58.26 - out_of_money_distance) = $971.20 CallRisked = 100 * (20% * 58.26 - 3.74) = 791.20 Short 25 delta Put Short SBUX Feb5`16 54.5 Put $0.98 1x PutRisked = 100 * Max(10% * 58.26, 20% * 58.26 - out_of_money_distance) = $971.20 PutRisked = 100 * (20% * 58.26 - 3.76) = 789.20 Risked = Max 789.20 and 791.20 Risked = 791.2 + Commissions Long 25 / 25 Risk Reversal Long Call: $62 Short Put: $789 Combined: $851 + Commissions Short 25 / 25 Risk Reversal Short Call: $791 Long Put: $98 Combined: $889 + Commissions

can you copy and paste that and send it to support@cmlviz.com ? Our support team is great.

Advanced Earnings Option Trade in Alibaba Group Holding Limited Alibaba Group Holding Limited (NYSE:BABA) : Advanced Earnings Option Trade Date Published: 2017-07-1 PREFACE There is an advanced option trade in Alibaba Group Holding Limited (NYSE:BABA) before earnings that takes no stock direction risk, no earnings risk, and reduces even the volatility risk. The strategy has for two-straight years and has returned 1,337% annualized returns. This is it -- this is how people profit from the option market. Identifying strategies that don't rely on a bull or bear market. TRADE TIMING This is for the advanced option trader, just note that this has a few steps to it. First we start with the timing: We want to look at a very short window, specifically opening a trade six-days before an earnings announcement and closing it the day before. Here it is plainly: So, to be clear -- this trade does not take on the risk of earnings, it closes before earnings. TRADE SET-UP With the timing set, we now construct the trade in with these rules: * Buy the at-the-money straddle with a 30-day expiration (or closest to it) * Sell an at-the-money straddle with a 7-day expiration (or closest to it) * Both of these straddles have expirations after earnings. Here's how this looks, plainly: And here is the reasoning behind the trade, before we get to the results: TRADE REASONING AND RESULTS The idea is to own the straddle with a longer expiration and sell the straddle with the closer expiration to benefit from the time decay in the shorter-term options. It's a fine cut to make this work, but this trade does not take earnings risk, does not take stock direction risk and takes very little volatility risk. Now, here are the results of this trade in Alibaba Group Holding Limited over the last two-years: BABA: Long & Short Straddle % Wins: 100% Wins: 7 Losses: 0 % Return: 153.9% While the set-up took a while to describe, the results are easy. We see a 153.9% return over the last two-years, which was 7 earnings cycles. This option trade won 7 times and lost 0 times. Even further, each period of this trade is just six-days, so that 153.9% return is actually just 7 weeks of trading, and if we annualize that, it makes for a 1,337% return. WHAT HAPPENED Betting on a bull market to continue or relying on picking the right time to change sentiment can be very tricky. But the most advanced option trades side step those potential pitfalls by arranging an option trade that doesn't take any stock direction risk, earnings risk and even limited volatility risk. To see how to do this, and any other strategy, for any stock, we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work Thanks for reading. Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Double Straddles: Advanced Earnings Option Trade in Amazon.com Amazon.com Inc (NASDAQ:AMZN) : Advanced Earnings Option Trade Date Published: 2017-06-29 PREFACE There is an advanced option trade in Amazon.com Inc (NASDAQ:AMZN) before earnings that takes no stock direction risk, no earnings risk, and reduces even the volatility risk. The strategy has won more than 50% of the time, has returned 460% annualized returns, but has also shown a high win-rate of 75%. This is it -- this is how people profit from the option market. Identifying strategies that don't rely on a bull or bear market. TRADE TIMING This is for the advanced option trader, just note that this has a few steps to it. First we start with the timing: We want to look at a very short window, specifically opening a trade six-days before an earnings announcement and closing it the day before. Here it is plainly: So, to be clear -- this trade does not take on the risk of earnings, it closes before earnings. TRADE SET-UP With the timing set, we now construct the trade in with these rules: * Buy the at-the-money straddle with a 30-day expiration (or closest to it) * Sell an at-the-money straddle with a 7-day expiration (or closest to it) * Both of these straddles have expirations after earnings. Here's how this looks, plainly: And here is the reasoning behind the trade, before we get to the results: TRADE REASONING AND RESULTS The idea is to own the straddle with a longer expiration and sell the straddle with the closer expiration to benefit from the time decay in the shorter-term options. It's a fine cut to make this work, but this trade does not take earnings risk, does not take stock direction risk and takes very little volatility risk. Now, here are the results of this trade in Amazon.com Inc over the last three-years: AMZN: Long & Short Straddle % Wins: 75% Wins: 9 Losses: 3 % Return: 90.8% While the set-up took a while to describe, the results are easy. We see a 90.8% return over the last , which was 12 earnings cycles. This option trade won 9 times and lost 3 times. Even further, each period of this trade is just six-days, so that 90.8% return is actually just 12 weeks of trading, and if we annualize that, it makes for a 460% return. Checking More Time Periods in Amazon.com Inc Now we can look at just the last year as well: AMZN: Long & Short Straddle % Wins: 100% Wins: 4 Losses: 0 % Return: 28.3% We're now looking at 28.3% returns, on 4 winning trades and 0 losing trades. It's worth noting again that we are only talking about six-days of trading for each earnings release, so this is 28.3% in just 4-weeks of total trading which annualizes to 430%. WHAT HAPPENED For the expert option trader, or the option trader that wants to take the next step in the evolution of trading, this is it. This is how people profit from the option market. To see how to do this for any stock we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work Thanks for reading. Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Double Straddles: Advanced Earnings Option Trade in Amazon.com Amazon.com Inc (NASDAQ:AMZN) : Advanced Earnings Option Trade Date Published: 2017-06-29 PREFACE There is an advanced option trade in Amazon.com Inc (NASDAQ:AMZN) before earnings that takes no stock direction risk, no earnings risk, and reduces even the volatility risk. The strategy has won more than 50% of the time, has returned 460% annualized returns, but has also shown a high win-rate of 75%. This is it -- this is how people profit from the option market. Identifying strategies that don't rely on a bull or bear market. TRADE TIMING This is for the advanced option trader, just note that this has a few steps to it. First we start with the timing: We want to look at a very short window, specifically opening a trade six-days before an earnings announcement and closing it the day before. Here it is plainly: So, to be clear -- this trade does not take on the risk of earnings, it closes before earnings. TRADE SET-UP With the timing set, we now construct the trade in with these rules: * Buy the at-the-money straddle with a 30-day expiration (or closest to it) * Sell an at-the-money straddle with a 7-day expiration (or closest to it) * Both of these straddles have expirations after earnings. Here's how this looks, plainly: And here is the reasoning behind the trade, before we get to the results: TRADE REASONING AND RESULTS The idea is to own the straddle with a longer expiration and sell the straddle with the closer expiration to benefit from the time decay in the shorter-term options. It's a fine cut to make this work, but this trade does not take earnings risk, does not take stock direction risk and takes very little volatility risk. Now, here are the results of this trade in Amazon.com Inc over the last three-years: AMZN: Long & Short Straddle % Wins: 75% Wins: 9 Losses: 3 % Return: 90.8% While the set-up took a while to describe, the results are easy. We see a 90.8% return over the last , which was 12 earnings cycles. This option trade won 9 times and lost 3 times. Even further, each period of this trade is just six-days, so that 90.8% return is actually just 12 weeks of trading, and if we annualize that, it makes for a 460% return. Checking More Time Periods in Amazon.com Inc Now we can look at just the last year as well: AMZN: Long & Short Straddle % Wins: 100% Wins: 4 Losses: 0 % Return: 28.3% We're now looking at 28.3% returns, on 4 winning trades and 0 losing trades. It's worth noting again that we are only talking about six-days of trading for each earnings release, so this is 28.3% in just 4-weeks of total trading which annualizes to 430%. WHAT HAPPENED For the expert option trader, or the option trader that wants to take the next step in the evolution of trading, this is it. This is how people profit from the option market. To see how to do this for any stock we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work Thanks for reading. Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

How to Trade Options Before Earnings in Fabrinet (NYSE:FN) How to Trade Options Before Earnings in Fabrinet (NYSE:FN) Date Published: 2017-06-28 This article can be seen in a video or as a full written article below the video. PREFACE Trading options in Fabrinet (NYSE:FN) using a short window before earnings are released has been a staggering winner over the last several years. This is it -- this is how people profit from the option market. Identifying strategies that are tightly risk controlled, take no stock direction risk and no earnings risk. Strategies that are immune from a bull or bear market. STORY Everyone knows that the day of an earnings announcement is a risky event for a stock. But the question every option trader, whether professional or amateur, has long asked is if there is a way to profit from this known implied volatility rise. It turns out, that over the long-run, for stocks with certain tendencies, the answer is actually, yes. Yes, there is a systematic way to trade this repeating phenomenon, without making a bet on earnings or stock direction. THE SET UP What a trader wants to do is to see the results of buying an at the money straddle a couple of weeks before earnings, and then sell that straddle just before earnings. Here is the setup: We are testing opening the position 14 days before earnings and then closing the position 1 day before earnings. This is not making any earnings bet. This is not making any stock direction bet. Once we apply that simple rule to our back-test, we run it on an at-the-money straddle: RETURNS If we did this long at-the-money straddle in Fabrinet (NYSE:FN) over the last three-years but only held it before earnings we get these results: Click here to see the back-test live That's a 162% return over the last three-years, with 9 winning trades and 3 losing trades. But, let's take a step toward risk reduction before we move forward. While we are looking at this same trade, let's also set a rule that if at any point in the two-week period the straddle loses 25% of its value, we just close it and wait for the next pre-earnings cycle. While we're at it, we will do the same with the upside -- that is, if at any time during the two-weeks the straddle goes up 25%, we take the profits and close the trade. For clarity, this is what we test: And now we can see the results over the same three-year period: Click here to see the back-test live While we are taking 75% less risk, we are seeing about the same results -- we will continue down this risk adjusted path for the rest of this dossier. Digging Deeper Now we can see the results over the last two-years: Click here to see the back-test live That's a 126% return and 7 winning trades with 1 losing trade. Remember, this trade takes no stock direction risk and no earnings risk -- this is completely agnostic to a bull or bear market. Even further, that 126% actually came on just 16 weeks of trading (2-weeks per earnings cycle, 8 earnings cycles), which is over 400% annualized returns. Now we look at the last year: Click here to see the back-test live We see a 65.2% percent return on 3 winning trade and 1 losing trade. Finally, we can look at the last six-months: Click here to see the back-test live That's 40.1%, winning both of the last two pre-earnings trades. WHAT HAPPENED This is it -- this is how people profit from the option market. Identifying strategies that are tightly risk controlled, take no stock direction bets or earnings risk. It's preparation, not luck. To see how to do this for any stock we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work Thanks for reading. Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

How to Trade Options Before Earnings in Fabrinet (NYSE:FN) Date Published: 2017-06-28 This article can be seen in a video or as a full written article below the video. PREFACE Trading options in Fabrinet (NYSE:FN) using a short window before earnings are released has been a staggering winner over the last several years. This is it -- this is how people profit from the option market. Identifying strategies that are tightly risk controlled, take no stock direction risk and no earnings risk. Strategies that are immune from a bull or bear market. STORY Everyone knows that the day of an earnings announcement is a risky event for a stock. But the question every option trader, whether professional or amateur, has long asked is if there is a way to profit from this known implied volatility rise. It turns out, that over the long-run, for stocks with certain tendencies, the answer is actually, yes. Yes, there is a systematic way to trade this repeating phenomenon, without making a bet on earnings or stock direction. THE SET UP What a trader wants to do is to see the results of buying an at the money straddle a couple of weeks before earnings, and then sell that straddle just before earnings. Here is the setup: We are testing opening the position 14 days before earnings and then closing the position 1 day before earnings. This is not making any earnings bet. This is not making any stock direction bet. Once we apply that simple rule to our back-test, we run it on an at-the-money straddle: RETURNS If we did this long at-the-money straddle in Fabrinet (NYSE:FN) over the last three-years but only held it before earnings we get these results: Click here to see the back-test live That's a 162% return over the last three-years, with 9 winning trades and 3 losing trades. But, let's take a step toward risk reduction before we move forward. While we are looking at this same trade, let's also set a rule that if at any point in the two-week period the straddle loses 25% of its value, we just close it and wait for the next pre-earnings cycle. While we're at it, we will do the same with the upside -- that is, if at any time during the two-weeks the straddle goes up 25%, we take the profits and close the trade. For clarity, this is what we test: And now we can see the results over the same three-year period: Click here to see the back-test live While we are taking 75% less risk, we are seeing about the same results -- we will continue down this risk adjusted path for the rest of this dossier. Digging Deeper Now we can see the results over the last two-years: Click here to see the back-test live That's a 126% return and 7 winning trades with 1 losing trade. Remember, this trade takes no stock direction risk and no earnings risk -- this is completely agnostic to a bull or bear market. Even further, that 126% actually came on just 16 weeks of trading (2-weeks per earnings cycle, 8 earnings cycles), which is over 400% annualized returns. Now we look at the last year: Click here to see the back-test live We see a 65.2% percent return on 3 winning trade and 1 losing trade. Finally, we can look at the last six-months: Click here to see the back-test live That's 40.1%, winning both of the last two pre-earnings trades. WHAT HAPPENED This is it -- this is how people profit from the option market. Identifying strategies that are tightly risk controlled, take no stock direction bets or earnings risk. It's preparation, not luck. To see how to do this for any stock we welcome you to watch this quick demonstration video: Tap Here to See the Tools at Work Thanks for reading. Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

So this is going to sound really weird, but it's actually against the rules for me to comment to one person, but I'm allowed to comment to a large group that isn't person specific. So, I can't really say anything other than some broad stokes. 1. Buying a call spread on a stock that goes up is generally a good idea, the question is whether it continues in the future. 2. This is a directional trade (bullish), which is fine, but just be aware that this is not a volatility scalp or timing pattern trade. 3. I generally, not specifically to this, like momentum trades. I have a pretty simple thought process which is that I like repeating a winning trade and I stop when it stops working. So, if I do a momo trade, and this is a momo trade, I know my last trade will be a loser -- that's fine, it's my exit signal. Until then, I may just let it ride until it stops -- why second guess? 4. Momo trades are just part of a broader option portfolio which can also include direction free bets, much like Kim does here extremely well, or minimally directional bets that try to scalp patterns in time (as a TM member you can read all of these on the Discover Tab -- pre and post earnings patterns, that are just vaguely directional). I hope that was helpful, NT, it's as specific as I feel comfortable with and of course, now important disclaimers are coming: Risk Disclosure You should read the Characteristics and Risks of Standardized Options. Past performance is not an indication of future results. Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.