2016 Was a Very Profitable Year
It was nice to have a 3 day weekend with the New Year falling on a Sunday. It gave me one extra day to review my past trades done for the year. This weekend I was very motivated to study all of my past trades. I was gone to South America for 3 weeks in December and I had the occassion to read 2 of my best books on investing and trading. Both the books that I read, made a point of the importance of making detailed notes on your trades in a Trade Journal and to do a Post Mortem of all your trades done for the year. I have always done that every year and it is an arduos process. This year however, I have enjoyed doing it. One of the reasons is because it has been a very profitable year for me and I owe my thanks to having identified $NVDA as my Super Stock of the year.
In my post on July 17th - "Low Risk Trades On $NVDA" I had highlighted 5 Credit Option Trades that were done in May, June and July. In each one of those trades, there was never more than $350 at risk and we managed to harvest over 90% of the credits in a trade. Since $NVDA trades over 16 million shares daily, it is a very liquid stock and they have weekly options available on them with very tight bid/ask prices. As the stock continued trading along the 8 day ema (exponential moving average), it presented plenty of opportunities every month to continue rolling up the conservative low risk Credit Option Trades for the rest of the year.
Bullish Option Trades on $NVDA
We had a Follow Thru day on July 1st, 2016 and $NVDA began to get institutional support. The stock maintained an RS ratings above 98, RS line was reaching all time hi and the stock consistently appeared in the top 10 groups. The stock was also trading along the 8 day ema This were the ideal conditions for executing an aggressive bullish option trades on the stock. To take advantage of such a bullish move of the stock, here are some of those trades done during the last 6 months of the year. For illustrative purposes, I shall use no more than $1000 at risk in any given trade. Following is the summary of 4 such trades:
- July 22 2016 ... Aug (Week 1) 55 Buy Call (in trade 7 days) Risk $856:$2130 Profit
- Aug 26 2016 ... Oct Buy 65 Call/Sell 70 Call i(n trade 35 days) Risk $1017:$1323 Profit
- Nov 8 2016 ... Nov Buy 71.50 Call (in trade 9 days) Risk $975:$5544 Profit
- Dec 14 2016 ... Jan 17 Buy 100 Call (in trade 14 days) Risk $924:$4515 Profit
Mentoring Service
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Happy Trading!
Amin
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