Hello!
My last options course for 2024 ended last week and I thought I'd share the stats of the live trades during the course.
Total trades - 11
Closed for a profit - 9
Still open - 2
Rolled - 0
Realized profit across 9 trades: $696
The course costs $699, so that's more or less the course fee right there. If the 2 open trades return their expected profits, that'll add another $260.
Of course not everyone made this amount of money - but the only limitation is the amount of capital. The knowledge and skills learnt is more than enough to build competence and confidence in taking trades independently going forward.
That said, if you are interested in signing up for the course, you'll get the most out of it if you have at least $25,000 in capital set aside for trades.
I will be announcing the dates and opening registration for the next course in early November and will only be running 2 courses in 2025.
If you're interested, please make sure you stay subscribed to this newsletter as it is the only place I will share the sign up link.
For this week's trade updates, I want to do something a little different and talk about how trades are selected.
Both of these trades were put on as part of the live training I referenced above.
This week:
1. $70 profit in HSY and $38 profit in SBUX
$70 profit in HSY & $38 profit in SBUX
During one of the live training sessions, I was going through the regular process of looking through my watchlist for potential trades, and one stock that was presenting an opportunity was SBUX.
Midway through the session, someone asked to look at HSY, which also met all my criteria for entering trades.
Interestingly, both of these trades presented almost the exact risk profile, potential ROI and margin of safety.
One thing that I teach in my course is that once a stock makes it to your watchlist, you should be more or less indifferent between them.
In other words, for all intents and purposes, to me they're the same trade.
The HSY trade involved selling a $180 cash-secured put, which would require $18,000 of capital.
The SBUX trade involved selling a $70 cash-secured put, which would require $7,000 of capital.
Being indifferent between the trades means people who had less than $10,000 capital could choose the SBUX trade, and those with more could choose either of the two, or both.
I ended up taking both trades and they both closed within 2 weeks to lock in $70 realized profit in HSY and $38 realized profit in SBUX.
I'm sharing these trades this week to illustrate the benefit of not having a certain directional view or preference towards the market or particular stocks, but instead trading whatever the market presents.
Both HSY and SBUX have been regular features in my trading this year, with HSY bringing in $289 realized profits across 4 trades and SBUX bringing in $649 profits across 5 trades.
People spend too much time analyzing whether stock A would be a “better” choice than stock B, when actually it doesn't really matter between the two of them because the goal is just to make a profit.
Besides the people from my course watching this live, everyone else in my private community was also alerted to the trade entries and exits.
If you're interested, do check out the link below.
Closing thoughts & useful links
We've come off 2 straight weeks of the market going up, but there were slight signs of some volatility this week, with the VIX bouncing between 16 and 18 from Wednesday to Friday.
I've switched back to being more cautious as I was for most of the first half of 2024, and will be waiting for clearer signals from the market before committing more capital towards trades.
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This update is for educational purposes only. This is my own portfolio which is being managed according to my goals and risk tolerance. Your situation is likely different and you should do your own due diligence before investing in stocks or options.