Created: Tuesday, 30 July 2013 15:15
Written by DanTrader
I did a great deal of due diligence last week to update broker availability/requirements/restrictions for Canadian residents. I know many have been disappointed to find optionsXpress and other US brokers stop servicing CAD residents this year. However, I was VERY pleased to find that there are indeed a number of brokers that are happy to work with Canadian residents to trade options in the US markets. Here are the details:
Interactive Brokers Canada: www.interactivebrokers.ca/en/main.php, 1-877-745-4222. Here’s the rundown: $10k minimum/$25k minimum for day trading. Access to simulated account ONLY if have funded real account. $.70 per contract, $1.00 minimum if you were to buy 1 contract. No fees at all for exercise/assignment (that’s pretty nice). They do not allow options trades in RSP’s.
TDAmeritrade Canada (Think or Swim): www.TDAmeritrade.ca/ustrading, 1-877-348-6722. They allow virtual trading account WITHOUT funding real account. $5,000 USD minimum balance at all times (so you would need more than that to have positions on to cover that cap requirement too). Stock commission is $9.99, options are flat fee of $9.99 + $1.25 per contract for spreads.
Virtual Brokers: www.virtualbrokers.com/contactus.aspx, 1-877-310-1088. $1,000 CAD minimum, allow virtual trading during 2 week trial while account application is processing. After that, you have to re-request another virtual account which will also expire in two weeks (makes no sense to me, but that’s how they operate). They have 4 different commission grids, based on how many contracts you’re trading. $9.99 + $1.00 for US market trades, $6.49 + $1.00 for CAD market trades (I believe that is what I was told), and there are two other tiers.
Jitney Trade: JitneyTrade.com, 1-866-608-0099. I don’t think this is a fit for you, no virtual trading, $15k CAD or USD minimum. You have to pay a monthly fee for the RealTek platform (streaming data) and it starts at $200/month (boo hiss). Commissions are also based on frequency/size of trades, somewhere around $6.95 fee + $1.25 per contract.
Questrade (Qtrade): www.questrade.com/contact_us/, 1-888-783-7866. Virtual trading similar to TD in that you have 10 days, then can request to extend another 10 etc. Commissions are $9.95 + $1.00 per contract, assignment/exercise $24.95 (boo hiss), $1,000 minimum for straight calls and puts, $5,000 minimum for spreads.
Scotia iTrade: www.scotiabank.com/itrade, 1-888-872-3388. $10k minimum, no virtual trading, commissions $24.99 + $1.75, or $9.99 + 1.25 per contract IF you have more than $50k in assets with them.
TradeFreedom – bought by Scotia Bank 3 years ago and rebranded as Scotia iTrade.
RBC Direct Investing: rbcdirectinvesting.com/, 1-800-769-2560. No spreads, can trade calls, puts, covered calls and naked puts. Commissions are $28.95 + 1.25 per contract, or $9.95 + $1.25 per contract if you have more than $50k in your accounts.
Hope this helps!!!
Created: Friday, 26 July 2013 18:00
Written by OptionDave
...And what a week it was! Today we celebrated another great Weekly Option Expiration for Members of ETNtrade. Looking back on this week, we had some fantastic trades. Some were big winners, some great "learning experiences" (we don't call them losers here). Overall, it appears we are adding some nice profits to the bank. Let's take a look at all of the trades ETNtraders closed this week:
CMG: 45% ROR on a Bull Put Spread based on Technical Analysis
AAPL: 39% ROR on a Reverse Iron Condor (RIC) based on Earnings
GPS: 140%, 67% and 25% RORs on 3 Bull Put Spreads based on Technical Analysis
NFLX: (68%) ROR on a Bull Put Spread based on Earnings
MSFT: 25% ROR on a Bull Put Spread based on Technical Analysis
FFIV: 71% ROR on a RIC based on Earnings
V: (93%) ROR on a Bull Call Spread based on Earnings
BIDU: 467% on a Strangle, 39% ROR on a RIC and 75% on a RIC based on Earnings
ABBV: 15% ROR on a Straddle based on an FDA Approval
BA: 33% ROR on an Iron Condor based on Earnings
AMZN: 11% ROR on a Reverse Put Butterfly based on Earnings
As you can clearly see, we have plenty of different strategies which we can deploy at any situation that comes our way. We had a very nice overall return this week, so let's break down our combined numbers:
15 Total Trades
2 Losers (Learning Experiences)
87% Winning Ratio
891% Total ROR
59% Average ROR
That would be a $5,900 profit on a $10,000 portfolio in ONE WEEK!
Now you know why ETNtraders are dancing in their Living Rooms right now. Great week everyone, but let's put it behind us, set our sights on next week, not get greedy/ emotional because of this week's results, and let's do it all again. See you Monday on our next Live Trading Class!!!
Created: Thursday, 18 July 2013 15:29
Written by OptionDave
ISRG has earnings tonight after the market closes. We looked at it in our Premium Member Elite Trader Training last night, and I promised to follow up on the blog with the actual trade once we developed it. THIS IS NOT INVESTMENT ADVICE. Please track this trade in a demo/ virtual trading environment only. Here are our trade details:
Earning:Tonight after close
Buy July 410/415/430/435 RIC for 3.50 Debit
Reward Potential: 1.50
B/Es: 411.50 and 433.50
Exit: Hold to Expiration and revisit tomorrow in Exit Class
Created: Thursday, 18 July 2013 15:14
Written by OptionDave
Chipotle is announcing earnings tonight after close. We analyzed it in our Premium Member Elite Trader Training last night, and here is the follow-up with our entry. Please keep in mind that this is NOT INVESTMENT ADVICE. We encourage you to track and follow this trade, and join us for our Live Exits Class tomorrow as we unwind the trade. Here are the details:
Buy July 360/365/385/390 RIC for 3.40 Debit
Profit Potential 1.60
B/E: 361.60 and 388.40
Exit: Hold to Expiration / Revisit tomorrow in Live Exit Class
As a secondary look, and a much more aggressive one, we also looked at:
Buy July 370/380 Strangle for 19.00
Exit: Tomorrow in the AM
Lastly, we looked at a conservative RIC as well:
Buy Jul 365/370/380/385 RIC for 4.20
Reward Potnetial: .80
B/Es: 365.80 and 384.20
Exit: Hold to Expiration and revist in class tomorrow
Created: Thursday, 18 July 2013 14:41
Written by OptionDave
Google is announcing earnings tonight after close. We analyzed it in our Premium Member Elite Trader Training last night, and here is the follow-up with our entry as promised. Please keep in mind that this is NOT INVESTMENT ADVICE. We encourage you to track and follow this trade, and join us for our Live Exits Class tomorrow as we exit the trade. Here are the details:
Earnings: Tonight After Close
Buy July 870/875/940/945 RIC for 2.15 Debit
Profit Potential: 2.85
B/Es: 872.85 and 942.15
Exit: Hold to Expiration and revisit during Exit Class tomorrow.
An alternate, more aggressive look would be:
Buy July 900/915 Strangle for 29.90
Exit: Tomorrow AM