In addition to the daily trade notifications, a separate weekly Trade Ideas email is also sent out to subscribers of the Trade Notification Service. See an example of the weekly Trade Ideas email below. The Weekly Trade ideas email will tee up the week ahead, highlight potential new trades, recaps the month-to-date trades and provides all pending trades.

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Hi Members 

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Below are the trades that have been closed in the month of December as well as the current list of pending trades. I've attached these images for better viewing purposes. All metrics are updated on the performance section of the site as of Friday 24DEC20.

 

The current record setting rally has been the perfect confluence of post election certainty, vaccine approval fueling the value rotation and fiscal stimulus coming out of Washington. Despite these positive events, we must continue to exercise discipline and follow the 10 rules of option trading that I reiterate weekly. As of market open Monday, December 28th all pending trades are out of the money. I will monitor all trades and provide guidance as the expiration dates approach if any strikes are challenged. 

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I will remain patient and put on new trades in a disciplined manner on a weekly basis in high-quality large-cap stocks. I will be targeting ETFs as always and preferably diagonal spreads and some call spreads moving into the February 2021 options. Selling options when the market has had significant sell-offs provides opportunities in underlying securities and coupled with the increased implied volatility, provides rich premiums so don't be too risk-averse during these periods.          

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I always strive to trade in high implied volatility environments across a wide array of tickers. Trading across uncorrelated tickers and maximizing the number of trades is critical for long-term options success. 

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Stocks to watch for the upcoming week: GOOGL, AMZN, V, MMM, IWM, QQQ,  and WBA. 

 

The below 10 rules in options trading must be followed:

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1)      Trade across all sectors

2)      Trade in tickers with liquidity

3)      Stagger expiration dates

4)      Sell options with high IV Rank 

5)      Manage winning trades

6)      Use defined-risk trades

7)      Maintains a ~50% cash level

8)      Maximize number of trades

9)      Trade through all markets

10)    Appropriate position sizing 

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NOTE: The above Excel template comes with the Annual Membership along with pre-built dot plots for ROI and premium capture per trade in addition to the filtering and monthly ledger.      

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Happy Options Trading

Stock Options Dad LLC

A Registered Investment Adviser (RIA) firm

www.stockoptionsdad.com 

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YouTube Channel

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Disclosure: Stock Options Dad LLC is a Registered Investment Advising (RIA) firm specializing in options-based services and education. There are no business relationships with any companies mentioned in this email. This email reflects the opinions of the RIA and corresponding portfolio activity. This email notification is not intended to be a recommendation to buy or sell any stock or ETF mentioned. Please refer to the Subscriber Agreement, Form ADV2A and Form ADV2B for the collective disclosures and brochures. These options trading services serve as a source of ideas and potential trades. All traders are encouraged to conduct their own research and due diligence prior to taking action. Stock Options Dad LLC - A Registered Investment Advising (RIA) firm - www.stockoptionsdad.com - defining risk, leveraging a minimal amount of capital and maximizing return on investment. Please direct all inquires to info@stockoptionsdad.com or team@stockoptionsdad.com.  

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