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
August 5, 2010 – TRADE ALERT!
TRADE ALERT
Good Morning,
It looks like we may have an opportunity today to enter into an attractive September Batman Condor position. The numbers below are based on Wednesday’s closing prices and include some aggressive bid/ask spread negotiation.
With the S&P 500 at 1127.24, let’s:
Sell 10 Sept. SPX 995 puts (delta .09)
Buy 10 Sept. SPX 985 puts
Credit of about $.65 ($650)
Buy 1 Sept. SPX 985 put
Sell 1 Sept. SPX 970 put
Debit of about $.65 ($65)
Sell 10 Sept. SPX 1225 calls (delta .06)
Buy 10 Sept. SPX 1235
Credit of about $.55 ($550)
Buy 1 Sept. SPX 1235 call
Sell 1 Sept. SPX 1250 call
Debit of about $.40 ($40)
Total net credit of about $1,045. The maintenance is $10,000. The maximum profit range is 995 to 1225.
Again, the numbers below are based on Wednesday’s closing prices and include some aggressive bid/ask spread negotiation. Thursday’s opening prices may be quite different and we may not be able to get the premium we hope. But, one thing is for certain – we’re not going to get it unless we ask for it.
Be prepared to be flexible and don’t get greedy. It should be interesting to see what happens. You may choose to put on one side and wait for another. The one-contract Batman spreads are actually pretty cheap – especially the call side. Some may wish to put on an extra spread if you are concerned about a particular direction and want an additional hadge.
Regardless, this will give you some guidance as to where to start looking. This is an official Core Portfolio position. Let’s see if we can get it to work.
Good luck and trade smart.
Mike
