Global AutoTrading

Welcome Visitor From Global AutoTrading

Terry’s Tips has been in business for 19 years tweaking a strategy consisting of calendar and diagonal spreads which benefits from the higher decay numbers of the short (usually weekly) options. We carry out 5 separate portfolios each of which uses a different underlying (currently COST, HD, IBM, MSFT, and TGT).

Our $97 monthly subscription fee covers all 5 portfolios. These portfolios have made 100%+ average annual gains in 2017 and 2019, and 3 of them have doubled in value in the first six months of 2020.

A subscription to Terry’s Tips includes a weekly Saturday Report which summarizes and discusses all the current positions of each portfolio, and displays a risk profile graph of the likely profit or loss in the coming week for each portfolio. A sample 6/20/20 portfolio report looks like this:

Summary of Wiley Wolf Portfolio This portfolio uses the 10K Strategy with MSFT as the underlying. The portfolio gained 120% in 2019 trading weekly options on MSFT. In 2020, we converted to selling monthlies instead of weeklies because we consider having 5-8 months of life to our long positions to be more conservative.

Results for the week: With MSFT (at $195.15) up $7.41 (3.9%) for the week, the portfolio gained $1,883, or 7.6%. This is an unusually large gain considering MSFT rose so much. Most of the time, we do better when the fluctuation is more moderate (in either direction). A good part of this gain was due to IV gaining this week. A week ago, the least-expensive (the at-the-money strike) one-week straddle would cost $5.58. At yesterday’s closing prices, this straddle would cost $6.85. The straddle cost is a good proxy for IV of underlying. By this measure, for MSFT, IV rose 23% and the portfolio showed a large gain. For COST, on the other hand, IV for the week fell by 23% and the Rising Tide portfolio lost value this week.

Next week, our short one-month options will expire. The risk profile graph shows an unusually high possible gain with a flat or moderately higher stock price. If IV continues at the same level, we have a chance for the portfolio to enjoy a gain of 200% for the year to date. Wouldn’t that be exciting?

You can become a subscriber and receive a copy of the most recent issue of the Saturday Report here -

It could be the smartest investment decision you make this year.

If you have any questions about us or our strategies, please write to me at Terry@TerrysTips.com

Happy trading,

Terry