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DAILY TRADE NOTIFICATION SERVICE - EXAMPLE
(Stand alone offering and included with Annual Membership) 

The daily trade notification service provides actionable real-time trade notifications for all trades. Removes the guess work of selecting tickers to trade, highlights underlying securities with favorable IV rank, in-depth commentary on each trade placed, screenshot from brokerage account capturing each trade and monthly reports summarizing trades and metrics. All trades are risk-defined via put spreads, call spreads and iron condorsExample trade notifications received via email and text. This is a snapshot of what you can expect to receive when you subscribe to the trade notification service with email and text examples below. 

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Text Notification Example:

Below is an example of the text alerts for each trade notification that accompanies the detailed email notification.    

Options trader, trading and investing, stock strategies, which stock to invest in, options investing, option trading example, option strategies, stock market, share price, stock trader, stock investment, stock put option, nyse stock market, stock options, online trading, nyse stock exchange, share market stock price, selling options, stock, option trade, stock market trading, shares index, call options, options for stock trading, shares index, stock options explained
Options trader, trading and investing, stock strategies, which stock to invest in, options investing, option trading example, option strategies, stock market, share price, stock trader, stock investment, stock put option, nyse stock market, stock options, online trading, nyse stock exchange, share market stock price, selling options, stock, option trade, stock market trading, shares index, call options, options for stock trading, shares index, stock options explained

Monthly Metrics Report Example:

Below is an example of a monthly metric report from January 2021 that comes with the trade notification service.    

Trade Notification Example:

 

Below is an example of an opening trade notification using a risk-defined put credit spread on Apple (AAPL):

 

Hi Members

 

Trade Type: Put Credit Spread – Position Opened    

 

AAPL 31DEC20 @ $112 / 31DEC20 @ $107

 

Per Contract Premium: $0.46

 

Required Capital Per Contract: ($112 - $107) - Net Premium of $46 = $454

 

Delta (Probability of Success): 0.15 (~85%) 

 

IV Rank: N/A

 

Opening Trade Set-Up:  

 

Sell-to-open leg #1

 

Buy-to-open leg #2 (protection leg)

 

You agree to buy shares at the higher out-of-the-money strike until expiration of the contract. You also bought the right to sell the shares at the lower out-of-the-money strike that will serve as protection and define your risk. A portion of the premium income received from selling the higher strike was used to buy an out-of-the-money lower strike option. The difference in premium received and premium paid out for the protection is your net premium income. The difference between your strikes will be your max loss less the net premium received.  

 

As the contract life-cycle unfolds and the stock does not break below the out-of-the-money strike, profits can be realized early and/or let the contract expire worthless to capture the entire net premium. Closing the trade and managing winners early in the option life cycle to realize profits early is highly recommended.  

 

Commentary: 

 

The strike of $112 provides a margin of safety of roughly 8.6% to the downside from current levels since shares are currently trading at $122.50 per share.  

 

I will actively manage the trade to avoid assignment. If the stock doesn't break below the higher strike price then I'll walk away with the premium in hand and re-purpose the cash for other trades.  

 

Risk Defined Trade: A put credit spread was sold by buying an out-of-the-money put for protection in the event the stock breaks through the higher strike price. The purchase of the put will allow you to sell the stock at the lower strike thus defining risk.

Closing Trade Set-Up:  

 

Buy-to-Close Leg #1 to close out the leg for debit

 

Sell-to-Close Leg #2 (protection leg) to close out the protection leg for a credit

 

The difference between your debit and credit to close out both legs will be added or deducted from the original net premium received.

AAPL Opened.JPG
Keyboard and Mouse

Actionable daily trade notification service for all opening and closing trades with commentary 

Bar Chart

All-inclusive offering

perfect for those seeking to remove the guesswork in options trading

Wave

70 large cap tickers and ETFs sortable by key technicals and dates to aide trade selection  

Stock Options Dad LLC

A Registered Investment Adviser (RIA) firm

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