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Back-to-Back 20%+ Weeks

It has been a fantastic start to Earnings Season for ETNtraders.  This week marked our second straight week where we added over 20% ROR to our Mock Portfolio, which tracks each and every option trade we discuss in our Members-Only Monday and Wednesday Live Trading Classes.  While we always mix use a wide variety of Option Strategies, our most effective ones this Season have been RICs, OTM Debit Spreads, and one phenomenal OTM Butterfly that netted us a 583% ROR on MMM. 

If you are not currently an ETNtrader and would like to learn more about how to do these types of trades on a weekly basis, please join us on our next Free Introductory Session by clicking on the link to the right of this blog.  All are welcome, and as always, if you have any questions for us, please do not hesitate to ask by clicking the Contact Us link at the top of the page. 

Let's make next week every better.  Happy Payday ETNtraders.  Have a great weekend!!!

Happy Trading,

OptionDave

Profiting in Today's Market

With the Market and individual stocks as unpredictable as ever, it is often hard for Traders to find the right mix and balance of trade types that will allow them to profit and at the same time to avert risk in their portfolios.  At ETNtrade, we take a number of steps to ensure we do both of these on a consistent basis.

First step is to use proper asset allocation.  While many Traders feel the need to over-allocate themselves in positions, we maintain strict standards in our trading that allow for us to create 4-6% profits on our overall portfolio per trade, while never risking more than 2-8% of our overall portfolio. This allows for much more diverse trading, better probability for success, with much less stress, which is one of the most important necessities in proper trading.

Next, we diversify our trading strategies.  Many Traders get stuck in a pattern of trading that can lead them to high highs but even lower lows.  What I mean is that they pigeon hole themselves into a style of trading that may work well currently, but carries too much exposure to outside variables. For example, they might trade Out-of-the-Money Credit Spreads.  While this can be a somewhat effective way of trading (though I believe they are Alligator Trades for most Investors), they also carry immense risk if the Market were to make a dramatic move.  This can wipe away months or years of gains in a single moment. We never want to have that type of exposure. So, ETNtraders diversify. And I am not talking about doing more than one trade. I mean our strategy selection covers multiple stocks, sectors, directions, risk profiles and much more.

Lastly, we are very selective in our developing of our watch list. It is very important as Traders to take the time to lay out multiple opportunities and only take the best of the best. We start by developing a watch list of candidates every weekend that will ensure that we are only in stocks that actually have options, have plenty of open interest, have strike prices that make the trade customizable, and of course ensure that there is a catalyst which will potentially provide profits. Once we have done this, we work through that list and assign trades to each of them. Once we have 10-20 good trades, we select the 5-10 that are the absolute best and execute them. That is how a diligent, Elite Trader manages his/her trading day. And to top it all off, the numbers prove that it works. At the end of the day, that is all that matters: PROFITS!

Happy Trading,

OptionDave

GOOGL & MSFT Earnings Trades

Today is a big day for ETNtraders as we are right in the heart of Earnings Season and tonight alone we have dozens of big announcements including such stocks as GOOGL, MSFT, P, AMZN, SBUX, and many more.  Today, I hosted an Introduction to ETNtrade Live Trading Class for the general public.  Here are a couple trades we discussed on that class:

MSFT- 43.56

Earnings: 4/23 AC

Priced In: 1.50

Buy Weekly 44/45 Call Spread for $.33 Debit

Profit Potential: $.67

B/E: 44.33

Exit: Hold to Expiration Tomorrow

 

GOOGL- 559.10

Earnings: 4/23 AC

Priced In: 21.00

Buy Weekly 542.50/545/575/577.50 RIC for $1.30 Debit

Profit Potential: $1.20

B/Es: 543.70 and 576.30

Exit: Hold to Expiration Tomorrow

 

Please keep in mind that this is not investment advice.  These trades are for Educational Purposes Only!  If you would like to learn more about these trades, please use the Contact Us tab at the top right to send us your contact information and one of our Elite Traders will contact you shortly. 

Happy Trading,

OptionDave

 

Earnings Season in Full Swing

Earnings Season is upon us once again, and while we are only about a week in, we already have quite a bit of data to look at in determining how we will position ourselves for profiting this time around. 

First off, with two back to back days of extreme volatility in the Market, this Monday was a difficult day to identify the Priced In amount of our options on each Earnings Stock.  In retrospect, many options were too heavily weighted, as many stocks did not or barely reached their priced in prediction.  This was especially true in the Tech Sector. With that said, Wednesday brought us a unique opporunity to adjust our strategies for this new outlook, and we are already seeing the results coming in very positive for us. We also now have data in the Credit Card Sector, Tech Sector, Energy Sector, etc.

On the horizon, we have some big hitters: MSFT, GOOGL, AAPL, and many more.  We have already set our Members up with the analysis and pricing needed to place profitable trades, and we will host a Free Web-Class tomorrow (Thursday April 23) to analyze how we did this.  If you would like to join us, simply click on the Registration Link in the right column of this page, register, and we will see you there.  If you do not make it, we will post the trades and results right here on the website and in the blog for your review.

Happy Trading,

OptionDave

Record Breaking Week at ETNtrade

Last week was an exceptional, record breaking week for us here at ETNtrade.  Not only was our win/loss ratio spectacular, but we also had a ROR that was just as impressive.  Of the 11 trades we placed last week, 9 were profitable.  That is a 82% Success Rate. Our overall ROR on Investment was 61%. 

Now, before we get ahead of ourselves, many people claim to have high 80-90% Success Rates on their trades, however they are not doing anything like what we are doing here.  Our trades are not 2-4% ROR potential with 100% risk.  Those types of trades MUST hit at a 95%+ probability in order to simply Break Even in the long run.  Our trades were much more aggressive, often with probabilities well less than 50%, with RORs in the 300% range, yet we still produced at a very high rate. 

Here are the stocks with returns we saw last week:

DVN- 100% ROR

ACT- 56%

HUN- 300% ROR

FOSL- -83% ROR

GRMN- 81% ROR

WMT- 75% ROR

DE- 47% ROR

MRVL- -29% ROR

TSLA- 92% ROR

HD- 72% ROR

PCLN- 85% ROR

Overall:  Using our proprietary Unit Allocation diversification model, our $100,000 mock portfolio gained an amazing 35% ROR overall in one week, even without fully allocating our entire portfolio.  We only had $57,000 of the $100,000 working, so our return on investment was 61% ROR... IN ONE WEEK! 

We had a wide variety of trade types that we used to achieve these returns.  We are not a one size fits all type of trading organization.  Each stock deserves its own strategy, and with the full toolbox we have at ETNtrade, we are able to apply the exact right strategy to any given scenario. 

Also please note that each of the trades I mentioned earlier were REAL, LIVE trades.  They were entered into a mock portfolio LIVE in the market on Monday and Wednesday's Live Webcast last week.  We exited the trades LIVE on Friday in our Live Trade Exits Class.  I point this out to ensure your understanding that these are not back-tested results.  These were REAL, LIVE TRADES.  I don't know of anyone else out there that is willing to put their reputation on the line as we do week in and week out, but we will, and once again we proved that WHAT WE DO WORKS!  It has for 6 straight years now and it will continue to work no matter what the Market throws at us.

Let's get back to it this week.  I look forward to seeing you all on the Live Trade Classes.

Happy Trading,

OptionDave

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