OptionsGeek offers simple Options Trading Ideas with great risk reward. Each week I send a recap with all the trading ideas I’ve given out. Since the August positions are almost complete, I wanted to show you the results.
Here are the Options positions we took during the month of August:
Only two positions are still open, one expires this week and the other is a January option. The latter is smack in the middle of some takeout rumors. That would be nice.
There were 14 trades this month. The one that hurt the most was the one I missed. On Sunday, August 26th, we were getting ready to buy Altria (MO) Calls. Unfortunately, the news of merger talks with Phillip Morris were announced Monday morning before we could get in. The stock jumped, and the opportunity disappeared. It happens.
That said, August shaped up well.
The big winners were MNST, CNHI, KR and GRUB. You don’t need much more than 1 GRUB trade idea to finish the month on the positive side.
PG and NEM didn’t even see daylight. EXEL sputtered from the start. DELL disappointed me and LAUR got railroaded by a secondary offering.
But with almost a 50% gain for the month, I can’t complain.
Starting from left to right, here’s a nice visual of the 14 trading ideas we took in August:
How to Read this Chart
In the chart above, the Green and Red Bars are the returns of each trading idea with a rules-based approach (one example: 50% stops). While I offer some guidance on those rules, every investor chooses their own rules.
The Grey Bars represent the price range of the option premium during the life of the contract. Each Grey Bar also highlights the maximum return of that option.
Let me be clear, consistently capturing the high is not possible. At OptionsGeek, we play for the middle.
And we’ve done a great job.
September and October are shaping up well. November is too early to tell. I’ll be back with those at a later time.
If you want great risk reward Options Trading Ideas, then click this link below…