Trader’s Report 8-7

Good Day Traders,

 
Overview & Highlights:   Tonight’s report comes to you from Vancouver, WA.  After the BAMM Meeting on Saturday my wife and I took off on a month long road trip.  My intent is to write from the road and highlight the challenges of trading while on vacation.  The first challenge is having adequate time to review for potential trades.  Because we already have open positions I will insure I have stop losses and profit target orders in place in order to manage these trades.  Two of the stock trades are Pre-Earnings trades on WBMD and IPHI that report on 8/8 AMC.  These positions must be close before the close tomorrow.  I’ve listed exactly how I’m setting up those order in that section of the report.  The big thing to remember while travelling is trade management and not necessarily opening new positions until proper review can be done.  The second is to use conditional order to do this management.
 
Webinars:  At Active Trend Trading we offer two webinars per week to provide training plus trade and market updates.  See the schedule below for the next webinars.
 
How to Make Money Trading Stocks on Friday, Aug 19th—Friday! Will be on the road during market hours this Friday.  Will record and post a session for the weekend
Register Here:  https://attendee.gotowebinar.com/register/5137505840659157251
11:00 a.m. PDT
 
Next Training Webinar:  Aug 10th – Recorded Session will be provided
For Premium Members our Wednesday evening training is developing some fantastic traders!
Topic:  Fixing Bad Trades
 

Strategy I Portfolio Building:  Bought 150 shares of WOR at 44.50 on 7/28
Bought 200 shares of IPHI at 34.70 on 8/2 – Close on earnings day 8/8 before market closes
Bought 340 shares of PLNT at 20.25 on 8/2 – Close on earnings day 8/11 before market closes
Bought 110 shares of WBMD at 60.70 on 8/2 – Close on earnings day 8/8 before market closes


 For the IPHI & WBMD I will place an order to close at the stop loss or 3.5% gain tomorrow with an OCO order to sell at 12:55 pm PDT.
 
Strategy II Income Generation:
Weekly Profit = $903
GLD closed all 12 contract position:  Profit Total of $2097 on full position
 
Trade 1:  GLD 19Aug 122/127C Debit Spread bought for $1.49 as a seasonal trade on Gold
Sold ¼ of 12 positions at $250 for a profit of $303
Sold second ¼ of 12 contract position on 7/1 at 3.10 profit = $483
Sold ¼ position of 12 contracts on 7/25 at 2.85 profit = $408
Sold last ¼ of 12 contracts on 8/2 at 4.50 profit = $903
 
Trade 2: PYPL 16Aug 40P bought at 3.30 on 8/2—Take Profits at 25% on 3 contracts and 50% on 2 contracts
 
For members wanting to better understand this Strategy there is a very good training video at:  http://activetrendtrading.com/basic-option-strategy/

Strategy III Wealth & Income Generation Trades:  Two Foundational Positions are in place to sell weekly options against.  The recalculated weekly revenue needed from these foundational positions was forward in an update report earning last week.  My objective with this Strategy is to collect enough weekly premium during the life of the LEAPS Strangle on both SPY and TSLA to both pay for the capital invested and gain between 50% – 100%.

Tip for Experienced Option Traders: Occasionally after a weekly trade goes against me but the trend appears to be changing I will add one naked contract over and above my foundation position and close this out after it gains at least half of the premium I’ve collected.  Doing naked options is not for everyone and I keep my risk small by only doing one contract above my covered limit.  In other words, if I can sell 4 contract covered by my long leaps I’ll sell one additional.  This helps hedge the losses a bit but it this tactic is not without risk and must maintain a tighter stop than I would normally use with the regular position.

Note:  We do our best to get both text alerts and email alerts out in a timely manner, occasionally there will be trades that are missed because of delay in the Text or Email alert applications.  Additionally, please double check with your broker to assure they allow spread trades like we do with Strategy III.  Some do and some don’t.

Additionally, it is crucial when selling premium against the Long LEAPS position that the premium collected cover the weekly cost of holding the LEAPS plus an additional amount to over this amount as a gain.  This is one of the reason I sell premium of weekly options that are close to be “At The Money”.  I base my selling on the expected move during the next week.  If one is not bringing enough weekly premium this trade will not work out as well and may wind up being a losing trade.

Strategy III Weekly Results Week ending 8/5:
SPY:  Profit = $234
TSLA:  Profit = $752
 

Trade 1:  Foundation Position is 4 contracts of SPY Jan17 205C and 4 contracts of SPY Jan17 200P Current Trade—Currently Up 22.49%; Premium Collected since opening trade on 1/4/16 = $5,356.00
 

Waiting for weekly setup for SPY trade

Trade 2:  Long TSLA Jan17 250C & Long Jan17 220 + New Positions Jan17 210C and 220P: Current Position Total Invested $14,900.
Currently Up 82.50%: Premium Collected since opening trade on 9/28/15 = $14,513.50 + New Positions at $2,763.50 = Total Collected $17,277

 
Sold 1 contract of TSLA 12Aug 230C at 3.95 potential profit $395
Will wait until later in the week to establish other positions
 

Several members have asked about this strategy and a more detailed explanation is available at:  http://activetrendtrading.com/wealth-and-income-strategy/
I posted a video about how to choose the weekly options to short for this strategy. It can be viewed at:  http://activetrendtrading.com/videos/
Additionally, some of these trade may be selling weekly puts on up trending stocks.  If you are interested in parallel trading this strategy register at this link:  http://forms.aweber.com/form/99/1278533099.htm
 

Potential Set Ups for this week:  Few stocks provided a great pullback for potential entries this past week on the quick drop in the Indexes.  Because Monday’s are usually light days in the market?

Pre-Earnings Trade:
Other pre-earnings candidates include: Existing positions are good for this week.  PLNT reports earnings on 8/11 AMC.
Pre-earnings trades can be a great supplement to the portfolio building portion of Strategy I.  Depending on the stock and technical analysis they tend to be predictable and repeatable.  For busy traders focusing on pre-earning opportunities can free one up from the necessity of constantly chasing stocks during other periods of the year.  The process repeats four times a year and capturing a 5%-15% return four times a year can compound very nicely!

Upside:   Waiting for pullbacks on the Index ETF’s & ACIA

Downside:   None

On the Radar:  Stocks & ETFs that could go either way include:  UPRO, SPXU, TQQQ, SQQQ, TNA, TZA & their associated non-leveraged Index ETFs. TSLA (Currently in downtrend channel), NFLX, BIDU, WYNN, PAYC, WBMD, XRS, MBLY, AMBA, PYPL, AVGO & NTES

Stocks identified by ** that are close to a potential entry point.


Early Warning Alerts for Leveraged Index ETFs:  Waiting second chance entry from alert on 6/27

 
EWA Account Return to date:  5.5%
 

New Video Update will be posted in July.

The Early Warning Alert Service hit all eight major market trading points in 2015.  See this brief update video for more details:  Early Warning Alerts Update Video  or at https://youtu.be/GJwXCL4Sjl4

 
If simplifying your life by trading along with us using the index ETF is of interest, you can get the full background video at:  http://activetrendtrading.com/etf-early-warning-alerts-video/

General Market Observation:   Last week each of the three Tracking Indexes provided a quick pullback to either the 8 or 20 day EMA’s then a bounce.  There were no reversal candlestick patterns or even uniform pullbacks to plan off of.  Just a quick intraday move that reversed the next day.  Friday was strong for each of the Indexes with SPX moving to a new high and the NDX closing above last year’s high.  The Russell still has more room to the upside before reaching last year’s high but is close the entering the resistance zone including last year’s high.

Currently there is some mild divergence but no signs of weakness in the price action on any of the Indexes.  Right not we wait for a pullback entry to the long side.  One of the members mentioned that the long trigger may have to come off an intraday hourly chart.  While this is a potential currently we must wait even on the intraday to provide a potential signal.

SPX:   Downside Market Short the SPY, SPY Puts or SPXU. 
Preferred Long ETF’s:  SPY, UPRO and SPXL

 
NDX:   Downside Market Short the QQQ, QQQ Puts or SQQQ.
Preferred Long ETF’s: QQQ and TQQQ
RUT:   Downside Market Short the IWM, IWM Puts or TZA. 
Preferred Long ETF’s:  IWM and TNA


The How to Make Money Trading Stock ShowFree Webinar every Friday at 11:00 a.m. PDT.   This weekly live and recorded webinar helped traders find great stocks and ETF’s to trade with excellent timing and helped them stay out of the market during times of weakness. 

How to Make Money Trading Stocks on Friday, Aug 19th—Friday! Will be on the road during market hours this Friday.  Will record and post a session for the weekend

 Register Here:  https://attendee.gotowebinar.com/register/5137505840659157251

11:00 a.m. PDT

To get notifications of the newly recorded and posted How to Make Money Trading Stocks every week subscribe at the Market Tech Talk Channel:   https://www.youtube.com/c/MarketTechTalk

 

–   The Active Trend Trader Referral Affiliate Program is ready.  For more information or to become an Affiliate please register here:  http://activetrendtrading.com/affiliates-sign-up-and-login/


Index Returns YTD 2016

Index 8-5

ATTS Returns for 2016 through Aug 5, 2016

ATTS YTD 8-5

Percent invested initial $100K account:  Strategies I & II invested at 8.6%; Strategy III invested at 25.98%.

ATTS YTD 8-5a

Current Strategy Performance YTD (Closed Trades)

Strategy I:  Down -1688.55 or -2.4%
Strategy II:  Up $3702.00 or +37.02%
Strategy III:  Up $19412 or +70.8%
Cumulative YTD:  21.45%

Active Trend Trading’s Yearly Objectives:
–          Yearly Return of 40%
–          60% Winning Trades
–          Early Warning Alert Target Yearly Return = 15% or better

For a complete view of specific trades closed visit the website at:  http://activetrendtrading.com/current-positions/  

Updated first full week of each month.  The next update August.


Outs & Ins:   ABMD, ATVI, CATM, ESNT, JACK, MPW and MTCH make their debut on the IBD 50 this weekend.  ABMD, ATVI and CATM have been on the list in past years.  Only MPW and MTCH are in the process of pulling back to the moving averages and support. 

To date the Running List is up to 222 stocks which is high for this time of year.

In-Out 8-5

 

Share Your Success:  Many of you have sent me notes regarding the success you are having with the Active Trend Trading System.  Please send your stories to me at mailto:dww@activetrendtrading.comor leave a post on the website.   Thanks.

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