Options Trade Idea for JOBS REPORT
by Matt Menster | April 5, 2018 3:37 pm
This is what I shared with my subscribers….
(sent at 3 pm EDT Thursday April 5 2018)
Fed Traders,
For tomorrow morning’s jobs
report I have placed the following trade:
1) I bought April 13th GLD $126 calls & 125.50 puts strangle
at $1.36 for jobs report, used a market order.
2) I bought April 13th QQQ $161 calls & 160.50 puts at $4.66 , used
a market order as well.
*NOTE: I did not buy a SPY strangle because they did not have
the right strikes available for next week’s expiration…ugh! But
QQQ should be an ok replacement.
I will update you during the first hour or so of trading tomorrow,
will likely sell losing leg and hold the winner for a few hours, and
maybe over the weekend.
*Also…if you are new understand that we have seen great success
with this strategy but please do not use more $ than you can afford
to lose, as always with any sort of trading.
Sleep tight! 🙂
-Matt
Source URL: https://www.stockgumshoe.com/2018/04/microblog-options-trade-idea-for-jobs-report/
I’ll update the result of this trade here in the comments tomorrow.
So for the layman, it looks to me like this is essentially a bet that gold and the Nasdaq (mostly tech stocks) will move either up or down over the next week — gold by at least 1%, the QQQ by at least 3%. Is that a fair interpretation of your sentiment?
Jobs report seems to have been a little bit weak but not shocking on the headline numbers, wages up a little and labor force shrunk again. Trade chatter seems to be more of an impact this morning so far.
That’s correct. I closed out on Friday with a net 10% gain, not what I was shooting for but I was down around 20% in the morning on Friday so happy to book a profit. Thanks for commenting Travis!
I appreciate these types of posts on trade strategy. I like trading options but have just been treading water or losing slightly since I started a few months ago. Thanks for your info
Glad you enjoyed the post!
Hey Matt,
Can you please provide an update on your option plays? Obviously, the QQQ puts (if you held on from yesterday) have paid off big today.
Please continue to post option plays! Thank You!
Yep! Posting the final update I sent to my Fed Trader Service subscribers now.
Ok gumshoe-ers, I ended up with a small 10% win on this trade. In effort of transparency, I was down about 20% in the a.m. on Jobs Report Friday (day after I put on the strangles), but ended up closing out the trade for a net gain of around 10% on Friday afternoon. I sold my “losing legs” in the a.m. on Friday, held the winning legs til the afternoon, which is my custom.
I would have had a substantial percentage winner had I used options expiring the day of the event…but I’ve found that to be a double edged sword, so I started going out to the following week’s expiration. Great results overall on this strategy, I hope to convince many of you to trade it with me. 🙂
Next comment will be my recap that I sent to my https://www.fedtraderservice.com subscribers…
**FINAL UPDATE SENT TO FED TRADER SERVICE SUBS ON FRI**
Fed Traders,
The QQQ’s finally pushed through the
lows of the day so I went ahead and jumped
on the chance to close out the puts at $4.13 moments
ago.
I also sold the GLD calls at .93, but they didn’t perform
as well as the QQQ trade.
I normally shoot for 50% or more gains on these jobs
trades but I will take what the market has given me
today, looks like about a 10% winner for me.
Here is the recap:
I paid $1.36 for a GLD strangle and $4.66 for a
QQQ strangle…
Then I sold the losing leg of GLD this a.m. at .35
and the losing leg of QQQ at 1.32. As mentioned
above I sold the winning leg of GLD at .93 and
QQQ winning leg at 4.13.
Paid $1.36 for GLD strangle, sold for $1.28 (slight loss).
Paid $4.66 for QQQ strangle, sold for $5.45 (17% win).
Overall, looks like around a 10% winner for me.
I will take it! Hope you came out with a bit of a profit
as well.
*Note: There is a new trade next week for members. 🙂
-Matt
https://www.fedtraderservice.com