As you know by now all sports subscribers get access to my Slack channel that many of my real time stock and option trades are posted.
This feature has been much more popular then I anticipated and the interest is getting to a level that is equal to the handicapping side.
One of the trades I make weekly has been 2 day short put sales. I have a screen I use on Wednesday evening to come up with a basket
of stocks to consider for this method.
Then on Thursday shortly after the market opens, I look to see if there are any premiums to sell, that meet my requirement for Annualized ROI.
To date I have published 422 two day short put sale trades. 397 winners vs 25 losers. That is a win rate of 94.08% with a profit factor of 2.34.
The drawdowns have been pretty tame until trade #369 where my largest drawdown to date occurred. So far we have recovered about 60% of the
drawdown over the last 45 trades.
422 Trades are reaching a level that is significant. But of course the more trades the more the reliability of the results.
This is a rather conservative method, as the transaction ends Friday after the close. The result is you either pocket the premium or
take delivery of the stock.
Some strategies in short put selling involve rolling it over to another month if you are underwater. Myself, my preference is to take delivery of
the stock and sell calls against it. If the screening is good, then this approach is the way to go. When you roll, you add transaction costs, and give up EV typically.
Here is a post I made this morning on my chat channel to subscribers:
Sold GME 5/13 40.00 Puts 10x.09 Sold RIVN 17.00 Puts 10x .15
Sold MARA 5/13 7.00 Puts 10x.10
That is it for now, More trades than usual although not at the levels when I started. As I mentioned the list was rather long this morning from my screens
RickJ 7:30 AM
7 two day short put sale trades, with the potential of $750.00 in income if they all close above their strike price tomorrow
Note, they are spread out , 10 units each
I do that to be conservative
Sure I could take the very best and sell 100 options. But the risk is much greater
These have all met my requirements, which as you know occasionally come up with 0 to 2 trades on Thursday morning
The amount of trades you take and the # of options you trade will be dependent on your account size. Remember my rule is to not trade on margin!!! That is your built in safeguard. If you do not have the money in your account to take delivery of every 2 day short put sale, then you need to resize
If you follow that one rule, you will have done what 95% of traders fail to do
And you can sleep much better on Thursday night:)
As with sports, this is not only a site to provide what I consider positive EV trades, but a learning site also
Take advantage of it as its included in your subscription
I have had questions about the need to put up large amounts of money for a small return
- the term large is relative:) and 2. the annualized ROI is the significant number you want to look at, rather than the $ made on the trade
As you can see, it more then just mentioning what I trade. As with the handicapping section I like to give my reasoning and also Ideas.
Right now the entire RickJ’s Handicapping Picks site, email, and slack channels are free for anyone that wishes to join.
I did this since I am using a new database for MLB and did not feel right charging for a database that has not gone through the rigors of real time.
That means everything on the service is also free, until the first day of college football. Then all subscriptions that are paused will be activated and all free acounts will
have the option of subscribing.
All one needs to do to join us for free until college football starts is send me an email to rickj@rickjshandicappingpickscom. I will add you to the email and both slack
RickJ’s Handicapping Picks