TESTIMONIALS . . .
Mike – There is not a day that goes by that we do not think of you and are thankful for the introduction to this world of non directional trading. I urge all traders to take your course and then begin to think and trade for themselves – and use the creative license you allowed us to receive. – Ron
Mike – You should be very proud of your performance, and I just wanted to thank you for teaching me your strategies. – Lee
Mike – I fully value and appreciate your candor, strategies and insight. You simplify what others try to complicate. I have gleaned a wealth (full pun intended) of information from both your newsletter and class. – Gene
April 7, 2010 – TRADE ALERT!
TIME TO GTFI
May Core Portfolio Trades
Good Morning,
There was nothing special in this morning’s open. It seems like the coast is clear to enter the trades I discussed in last night’s column. Let’s call these official Core Portfolio recommendations.
There was nothing special in this morning’s open. It seems like the coast is clear to enter the trades I discussed in last night’s column. Let’s call these official Core Portfolio recommendations.
Something to consider, however, is that we’re heading into earnings season. A lot of surprises could be waiting for us – both good and bad. Plus, the CME earnings are scheduled to be announced before the open on Thursday, April 29th. It’s an added risk to trade stocks with upcoming earnings announcements. That’s a decision you’ll need to make.
A site that comes in handy for earnings information (and schedule) is – www.earningswhispers.com. They give you the date, the analyst’s estimates along with the whisper numbers. It’s information that can help in making your decisions.
If you are concerned about the upside (which I am), you may want to put on the bull put spread first and watch the market for a few hours or a few days before you put on the bear call spread.
Good luck, be careful, and don’t risk the farm. Remember, trending markets are not the best environment for non-directional trading.
Trade Idea #1 – RUT – May Iron Condor
With RUT at about 701.48, let’s:
Sell 10 May RUT 620 puts (delta .09)
Buy 10 May RUT 610 puts
Credit of about $.50 – $.55.
Sell 10 May RUT 760 calls (delta .08)
Buy 10 May RUT 770 calls
Credit of about $.50 – $.55
Total net credit and profit potential is $1.00 – $1.10. Maximum profit range is 620 to 760 and the maintenance is $10,000.
Trade Idea #2 – CME – May Iron Condor
With CME at about 317, let’s:
Sell 10 May CME 270 puts (delta .09)
Buy 10 May CME 260 puts
Credit of about $.55 ($550)
Sell 10 May CME 360 calls (delta .09)
Buy 10 May CME 370 calls
Credit of about $.55 ($550)
Total net credit and profit potential is $1.10 ($1,100). Maximum profit range is 270 to 360 and the maintenance is $10,000.
Remember to always adjust the number of contracts to your account size and risk tolerance.
