OptionsGeek offers simple Options Trading Ideas with great risk reward. Each week I send a recap with all the trading results.
Here are the Options positions we took during the month of July:
We made it out of July standing tall, but it was nothing short of a wild month. And, even though we’ve designed a game plan to remove the emotions of trading, only a robot couldn’t feel some frustration.
What caused the frustration?
There were two trades that stopped (buys or sells dictated by rules) most people out. However, it’s important to note that the stop out would depend on where the entry was made and each person’s unique plan. I know several people that maintained positions and made a killing. I was not one of them.
The first trade was Target (TGT). I need to show you the chart for you to really appreciate the pain.
Buy Calls. Stopped Out. Rebounds. Explodes on earnings. Mommy!
There wasn’t a lot of time to heal from those wounds before Archer-Daniel Midlands (ADM) threw us for a loop. Bought Puts at $0.70, stopped out on its way to $0.20, then up to $3.55.
That hurt, too.
But, there were some good winners this month, especially NTAP and PDD. Those ugly sandals (CROX) also did well. Remember, you don’t need many 400% winners to do ok. One 400% winner, pays for eight 50% losers (investing the same amount). Simple math.
Here’s the month in pictures.
If you happened to catch those two other “winners,” then the returns were more than double that. I know, big if.
I’ll take 28.2%.
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.
If you want great risk reward Options Trading Ideas that have delivered great trading results then click this link below…