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Posted by Guest January 20, 2017
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12 Tips to Help Turn Your Company into an International Business


Turning to the international market is a great way to ramp up your company’s sales, but it does require a bit of hard work. While the Internet has made selling to people in other countries easier, a website alone won’t turn your company into a worldwide success. Use these tips to expand your company across the globe.

 

 · Test Markets with Other Marketplaces

 

An easy way to test how well your product might do in other countries is to list it for sale through other companies that already have an international presence. For instance, Amazon, eBay, Rakuten, and Alibaba are all well-known around the world. With your products selling on these sites, you can start to identify which countries might have the best markets for your particular product.

 

 · Research Other Countries

 

When you’ve identified a few potential markets, it’s time to do some research. Note whether the other countries have packaging laws that differ from England’s. Does your product contain ingredients that are banned in other countries? Are there similar products within that country or is your product unique? Knowing these details ensures that you don’t get yourself into legal hot water.

 

 · Develop an International Business Plan

 

Business plans are essential for the success of any company. When you’re ready to go international, you need to modify your business plan to include this information. Having a solid plan can help you stay on track.

 

 · Use a Payment Processor Designed for International Use

 

Dealing with payments in other currencies can be troublesome. Choose a payment processor that makes this easy for you, such as SEPA from Access Pay which helps those who are selling throughout Europe.

 

 · Professionally Translate Your Website Content

 

While many people throughout the world speak English, a good business owner recognises that you can reach more people with translation. Google might be able to automatically translate your site, but if you’ve ever tried to translate a non-English site into English, you know how machine-based translation can backfire. Hire professional translators to get the job done.

 

 · Localise Your Marketing

 

People in other countries don’t have the same needs as those in England. When translating your website and other marketing materials, change the message to better reflect the needs of the people in that area. Directing the right message to the right people is essential for success.

 

 · Speak the Language

 

Aside from the website, you’ll need to have staff that can speak other languages in order to deal with customer service issues from other countries. Initially, you might be able to get by with on-call workers, but eventually you’ll want full-time staff.

 

 · Network in Other Countries

 

Attend international networking events to meet business owners from other countries. These people can offer valuable insight into the market and may even want to collaborate with your business.

 

 · Adjust Your Prices

 

Set your prices in different currencies. If you have your website automatically change currencies based on the viewer’s location, you can end up with awkward and fluctuating pricing structures. A person who’s considering a purchase might be frustrated by an increased price the day after doing his research, even if it’s only a slight increase.

 

 · Plan for Shipping

 

Research options for shipping internationally. You need to factor the additional costs into the pricing. Once you start making more sales, you may be able to negotiate better pricing with the shipping company. If your product takes off, you may choose to have warehouses in other countries for easier shipping.

 

 · Set Up an International Sales Team

 

As your product becomes more popular in other countries, you may want staff based out of those countries. Even if these people work from your office in England, it’s a good idea to have a team that’s dedicated to the international side of your business.

 

 · Get Advice from Experienced Business Owners

 

It’s normal to feel out of your league when you’re expanding internationally. Get the help you need by speaking with others who are more knowledgeable than you. Look for a business mentor or get advice from the Business Support Hotline.

 
Many business owners dream of selling their products to people throughout the world, and it’s never been easier to accomplish this goal. However, the best way to find success it through proper planning.






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All Dividend Investing,  Options Trading,  Personal Finance

The Top Four E-Commerce Businesses

The Top Four E-Commerce Businesses

The Top Four E-Commerce Businesses

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Investing in companies means watching the trends and understanding what’s hot – and what’s not. This is this is especially true of e-commerce. Here are four areas of online selling where you can make a killing.

 

· Tech and gadgets

In an increasingly digital and wireless world, people want to be connected to others and control of their surroundings. Consumers are investing in gadgets that help them do this more than ever before.

From wireless chargers to child locating GPS systems, to plugs and devices that can make a home more responsive, new tech and gadgets are a perfect e-commerce opportunity. Tech and gadget selling online retailers are great companies to invest in moving forward.

 

· Fashion boutiques

The seasonality of products keeps this type of business cycling upwards well. Steady growth for the best boutiques is linked to great customer service, generous return policies, trend-setting product choices, and attention to what’s hot in the market. Current trending items include everything from things like unisex wood sunglasses and wood watches to fashionable leggings for women and bow ties for men.

 

· B2B products and services

Retailers who target niche subsets of the e-commerce market, like other businesses, also do well online. Products like marketing and promotional materials are still strong sellers in the B2B marketplace and help leave a lasting impression with clients and potential customers.

While the gifted pen still reigns supreme, other online products include customizable uniforms, USB devices, writing pads, headphones, and other indispensable objects of the millennial generation. Basically, anything a customer can fit a logo on is fair game.

Additionally, products like training products, office supplies, and other business related products are able to capture a large portion of the online retail space.

 

· Health products

While there are plenty of trending health products, and lots of false and exaggerated claims, not all companies have seen steady growth in recent years. However, some of the highest-trending items in the last half decade have been things like macha power, coconut oil, and anything gluten-free or paleo.

Even “health” alternatives to cigarettes like e-cigarettes and liquid refills for these new devices. Forbes noted back in 2012 that the e-cigarette market was set to explode. While the sale of the actual devices has taken a downturn in the last year or so, trends for liquid refills are still as strong as ever.






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All Dividend Investing,  Options Trading,  Personal Finance
Posted by Martin January 06, 2017
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January 2017 goal


PlanLately, I was reviewing our portfolio and analyzing what went wrong and why I no longer feel comfortable with it and with my trading.

It is something I struggle with – over trading.

So what I did wrong that put me out of my comfortable zone?
 

First, I set a wrong plan. I calculated that I could open one strangle contract every day as I misjudged the ability of my buying power to handle it. When I realized that it was wrong, it was too late.

Then I decided to stay in those trades as I wasn’t willing to take the loss. It still would be OK if I didn’t do my trade rolling the wrong way.

I rolled a trade (strangle) without waiting for the untouched side to close.

Today, when I have a strangle on, and one side gets touched, for example puts, I wait for the calls to get closed first. Once closed, then I roll the puts.

I haven’t done that this way.


 


 

Are you Ready to Trade?

If you like results of our trading open yourself an account with OptionsHouse.com and start trading with a low commission rates + free virtual trading tool!

Your new trading account will come with a paper money account and will be immediately funded with $5,000 of virtual money for you to test the options trading and if you join our trading group on Facebook you can get a guidance, ideas, and trading education. Before you commit your real hard-earned money you can use the virtual account to test our strategies, learn, and ask all questions you need to learn options trading.

Once you learn and get ready, start trading live account and earn monthly income similar to ours. And we will be happy to assist you with that.

Seize the opportunity. Open a new OptionsHouse Account Today! Open and fund an OptionsHouse account to receive up to $1,000 worth of commissions on online trades for 60 days.
 


 

First, I treated all options structures as one trade through its life. For example, if I opened a jade lizard or strangle, I put a closing order on the entire structure. But if one side got in the money, the other side of the trade became worthless, but the trade didn’t close. I do not do this anymore. After I open a trade, I continue treating each trade as separate legs. It gives me a better flexibility to trade.

Second, once one leg of my options structure got in the money, out of fear of assignment I decided to roll that leg away and down (and out of the money) and I sold a new opposite leg against it to offset the cost. For example, if my puts got in the money, I rolled them away and sold new calls against it while I still held the old calls!

Without waiting for the old calls to get removed I started piling trades I didn’t want. The stock reversed rallied up hard and soon I had to roll the old calls and new calls higher. And to do so, I was selling new puts against it while I still had the old ones. I didn’t wait for the old to get rid off.

Can you see the flaw and a trap I got myself in?

Fortunately, I realized my mistake and started working on fixing the mess in our portfolio.


 

 · January 2017 plan

 

My goal as a trader, for January 2017, will be to put the portfolio back on track with the allowed number of trades (a new calculation of allowed trades based on the risk and overall used and free buying power). This will be a long term goal as not all trades can be closed unless I start taking losses. And that is what I do not want. There fore we need to wait.

In the mean time, we have a few allowances in our buying power allowing us continued trading, we can trade additional trades to avoid staying idle. In January 2017 we will be reducing the number of additional allowed trades to 5 contracts (5 strangles) at a time (currently 6 contracts) as well as reducing the existing trades (existing 27 contracts – mostly strangles). New trades (contracts, strangles) can be added to the existing trades only if there is no impact on buying power (for example if we have 13 call contracts and 5 put contracts, adding 8 new put contracts is acceptable only if the new contracts will have no impact to the buying power).

This rule, however, reduces our trading ability making our trading more conservative (not in how aggressive the trade might be but how many of them we have open). For this reason, I do not expect to make $3,000 dollars premium income this month. I hope we will be able to make $1,500 dollars in January 2017.
 






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All Dividend Investing,  Options Trading,  Personal Finance
Posted by Martin January 04, 2017
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December trading results and year end review


December ended and we have a new year again. It was time to review our achievements and set new goals.

I cannot believe we are again at the beginning of a new year already. Really.

Many people considered 2016 year a dismal year. At least that’s what I have read on the internet so far. I considered 2016 successful to us and our trading business.

Although December itself wasn’t good for our trading, the entire year was.

Let me first announce a few changes as far as this blog goes.

 

 · Future of Hello Suckers blog

 

I started this blog in 2008 to document my personal journey in investing and trading.It was a good journey, full of great successes and terrible, costly mistakes.

I started investing in 2006 but had no clue what to do.

I believed I could learn by doing. There is nothing wrong with that if you really learn and know what to learn.

That was the biggest issue. What to learn?

Starting this blog 2 years later was a big help as it showed me all the flaws of learning how to invest successfully. However, later I finally had my first “aha” moment when I started searching for similar bloggers writing about investing and trading.

At that time, there weren’t many. But I found a few who continued writing about dividend investing. Some no longer exist and no longer write. New emerged.

I would like to thank to all of them who continued writing about their own journey, their own achievements, and educating their readers. You definitely helped me to start a great investing and later trading business. So:

 
THANK YOU!
 

In 2012 I started trading options as addition to my dividend growth investing. It was a completely new path to me. I had to learn a lot. And once again I made many costly mistakes.

In 2014 I decided to start a business involved in security trading, our ZZ Capital Management company.

It was definitely an interesting endeavor but not easy. If you are involved in trading business you are on your own. No one will help you, no one will be willing to help you.

You will feel like having a leper whenever you ask for a business loan, tax help, or any business related help. When you reveal what business you are involved, one group of people turn away from you, some will think you must be rich and ask for enormous money to get paid for their help, or have no clue how to help you at all (for example my tax accountant who had no clue how to deal with my trading reports).

In December 2016 members of our company decided to officially transfer this blog to the company. So from now on this blog will serve as informational blog about our company, our company trading, trading education, and announcements. I will no longer be posting any personal achievements or personal investing.

This change will also have an impact on our reporting. It will no longer be done in the format I have been doing last year. We will write about our achievements and income to be transparent and establish a good track record for our followers and investors.

 

 · Trading Group

 

We started a trading group on Facebook last year. The group is an online platform where we post our trades along with other traders/members. We have great members, great experienced traders in the group. Many are willing to teach others and help novice traders to learn trading options.

I am personally happy to see how this group evolved and progressed so far.

If you want to learn trading options and interact with us online I recommend you to join the group and follow our trades, ask questions, and learn.

 

 · December 2016 trading results

 

Trading in December wasn’t good for us. We suffered some serious losses this month. We lost $5,339.38 dollars this month.

So what happened?

It was my favorite WYNN stock which hurt our business this month. This stock is not a stock for active trading if you do not have enough time to watch it actively.

We were already over-exposed to that stock and had too many open positions but it was all manageable. If I was there to manage the trade.

I had to leave for a meeting and in the meantime the stock crashed 10% in 15 minutes. And I wasn’t there! When I got back the damage was already done and we saw margin call on our account.

If I was sitting in front of the computer and saw the stock tumbling I could adjust my positions to avoid the damage. We had puts only against the stock. We could reverse them all into calls and be good. But I wasn’t there. I had to go on a meeting!

The toll was high. We lost more than $6,000 dollars ($6,964.00 to be exact). When you get a margin call you have no other option than close the trades – at a loss!

So we had to take a loss.

For the rest of the month we slightly adjusted our trading plan and worked on recovering our losses. The final bill was -$5,339.00 so we recovered $1,625.00 dollars this month.

 
However, this hiccup didn’t have a serious impact on our overall trading!

I am happy to announce that in 2016 we made $19,054.12 dollars trading options.

We took a loan from a company member who took a personal loan and then loaned the money to the company which we used for trading. We paid back $6,158.00 last year.

I think, this is a great result showing that our operations are sustainable and that we can make money to pay for our bills.

We are still building our company and it is still a financially fragile business but it is already working.

Our net profit for 2016 after all bills and losses is $12,229.00. Remember, we started this year with $1,500 dollars in our account. We borrowed some cash and finished with $12,229.00 profit.

When looking at reporting though, you may notice that our net-liq value is low (at around $3,000 dollars without a loan). It is a bit stretching but it is a result of our open trades mainly our WYNN trades which we still have adjusted and which are blocking a lot of money in our account.

In 2017 it will be our goal to get rid of those trades.

 

 · Trading results publishing

 

We will no longer publish detailed reports about our trading as I did in the past year. We will write about our trading, we may mention our results, but all our results for the month and year will be visible in our section Trades & Income.

You will be able to visit that section at any time and see the most recent trading result such as:

 
– month-to-month trading income showing how much money we made in premiums per month
 
– account value and chart
 
– individual trades journal which you can use to review all our trades and eventually back test them.

 

Hope this change will simplify our work and make reviewing our trading results better and consistent. Reporting the way I was doing became so robust that it consumed a lot of time. We want to focus on trading and helping others to trade and not spending weekends writing lengthy reports.

I hope that you will like the new format and if you have any questions do not hesitate to contact us.

I wish you a Happy New Year!






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All Dividend Investing,  Options Trading,  Personal Finance
Posted by Martin January 02, 2017
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How I trade strangles


In my previous post I wrote about predicting the market or stock moves and that I do not do it and why.

Yet people keep asking me how do I select stocks to trade and how do I trade them when I do not predict their moves and do not study them.

I understand their concern as I was in the same boat. I too wanted to know what the next move will be and why a stock is doing this or that. But I no longer care for that. I watch and follow the stock. I know what the Wall Street’s concerns were and why a sell off occurred in the past if you ask me. But I do not search for that information in order to predict the next move, make a trade decision and trade based on it.

Remember, everything you have ever read about the stock is in the past. And as every disclaimer says, past performance is not a guarantee of a future one. What you have ever read about the stock already happened and it may or may not have an impact to its future.

Do you want an example?

Take STX stock. In April 2016 the stock fell from $36 a share to $18 a share on a bad guidance on hard drive sales because of slowing PC sales. Today, in December, the stock is trading at $36 a share again (and at some point it was at $41 a share). If the past and the guidance was so bad that it needed a sell off of the stock, why is it trading back up at $36 a share six months later? Wasn’t it suppose to be a disaster for the company? And how come the past poor hard drive performance didn’t affect the future?

So I keep myself informed. But I do not do it to make trading decisions.

In today’s post I will try to describe an entire process of trading strangles. I do have a few rules and criteria I use to trade. None is based on predictions though.

 

 · What to trade?

 

If you follow my blog you already know that I trade options and invest into dividend growth stocks.

But when trading options I primarily use dividend growth stocks as underlying. The reason is simple. If I get ever assigned to a stock when selling puts, I keep the stock, collect dividends, and start selling covered calls. If I have to hold a stock, I want the dividend for it to maximize my potential profit.

So the very first step you want to do is to create a watch list of dividend stocks. You can browse the internet and find for dividend stocks. You can go to “Investing Links” on my website on the right side of the blog and there are many other dividend investors listed, such as Dennis McCain, FerdiS, Keith Park, Dividend Growth Investor, Mike, or Dividends 4 Life to just name a few.

Then browse their blogs and look what they are buying, what stocks they are talking about. And there you will find ideas of stock you can use. Put those stocks in your own list.


 


 

Are you Ready to Trade?

If you like results of our trading open yourself an account with OptionsHouse.com and start trading with a low commission rates + free virtual trading tool!

Your new trading account will come with a paper money account and will be immediately funded with $5,000 of virtual money for you to test the options trading and if you join our trading group on Facebook you can get a guidance, ideas, and trading education. Before you commit your real hard-earned money you can use the virtual account to test our strategies, learn, and ask all questions you need to learn options trading.

Once you learn and get ready, start trading live account and earn monthly income similar to ours. And we will be happy to assist you with that.

Seize the opportunity. Open a new OptionsHouse Account Today! Open and fund an OptionsHouse account to receive up to $1,000 worth of commissions on online trades for 60 days.
 


 

When you are done, you should end up with 30 to 40 dividend stocks. Or more if you find more. There is no limit. Do some reading about those stocks and learn how to select good dividend stocks.

 

 · Selection criteria

 

Creating a watch list is just a first step. It still will not tell you which of those stocks you will be trading.

I browse through my watch list to choose stocks which meet my trading criteria. My criteria change time to time, sometimes the stocks change a bit so they fit my criteria. When they do, I add them to my narrower list. If they no longer meet my criteria I remove them from my narrower list back to the broader list.
 

Here are my criteria to find stock to trade using the broader watch list:
 
1) The stock must be a dividend stock

2) The margin requirement per one contract must be less than $1,000

3) The premium per one strangle contract must be greater or equal to $0.40 or more (for a 7-10 day contract)

4) The stock must have weekly options
 

Before we review how I evaluate the stocks whether they meet my criteria or not, here is my strangle strategy and the way I build it.

 

 · Building and trading a strangle

 

Here are a few points on how I create a strangle:

1) I trade weekly options using the selected underlying stocks and trade 7 – 10 days to expiration.

2) If opening a new trade on Monday or Tuesday I open a trade with the same week (Friday) expiration if collected credit is equal or larger than 0.40 per strangle.

3) If opening a trade on Wednesday to Friday I open a trade with next Friday expiration.

4) I trade strangles using near the money (one strike out on each side).

5) If I have a bullish bias (I will explain later) then I open puts near the money or at the money and calls two to three strikes out. If I have a bearish bias I open calls near the money or at the money and puts two to three strikes out.

6) As soon as I place a new trade I place a buy back order to close the trade for 0.05 debit for each leg separately (one BTC order for put and one BTC order for the call).

7) During the week as the stock moves one or the other direction (and I really do not care which direction it is), the untouched leg (or further away out of the money) becomes close to worthless and it is bought back for 0.05 debit. After this happens (and never sooner) and the untouched side of the trade is closed, then I can roll the touched side away.

8) If the touched side is still OTM or near the money I wait until expiration as the stock may move my direction and the touched side may expire OTM or be bought back for 0.05 debit. If the touched side is deep ITM or it is apparent that it won’t recover by expiration then I do not wait and roll right after the other untouched side is closed.

For example, I sell a strangle against STX trading at $36 a share with 34 put and 38 call. The stock moves down to 34. The calls becomes worthless and I buy them back for 0.05 debit. This allows me to roll endangered puts. Since the stock is at 34 I decide to wait until Friday expiration. On Friday morning the stock moves sharply up to 37.50, the puts become worthless and get closed at 0.05 debit.

9) However, if the outcome was different and the stock moved down on Friday morning from 34 a share to 33 a share then I would roll the puts into the next week, down from 34 strike to 33 strike and sell a new 35 strike calls against it.

10) I always try to roll into the next week only (rarely two weeks if there is no way to roll for credit) and it must be a credit trade.

11) The new trade roll will either be a new strangle, straddle, or inverted strangle (depending on the touched leg position at expiration – if ITM but near the money, it will be a strangle or straddle, if deep ITM it will be an inverted strangle).

12) If the stock ends in between the two strikes and both get liquidated for a profit, then the new trade will be a new strangle.

 

 · Evaluating stocks

 

Now that you know how I build and manage the strangle trade, let’s review step by step how I evaluate good candidates for trading using my broader dividend stocks watch list.

Let’s pick one stock ADP.

Open its options chain and this is what we see:

 
ADP
 

The very first thing we can spot is that ADP doesn’t offer weekly options. There fore it doesn’t meet our criteria and it is excluded. We do not need to evaluate any further.

Let’s pick and evaluate AAPL:

 
AAPL
 

From the chart above we can see that Apple (AAPL) offers weekly options (it passes test #4).

We also know that AAPL pays dividends (it passes test #1).

To evaluate other criteria I need to construct the strangle as described above.

So I place a near the money put (one strike out = 115 strike) and near the money call ( one strike out = 118 strike):

 
AAPL
 

As you can see on the picture creating this strangle I would get 0.99 or $99 per contract. Thus this passes the test #3.

Now we need to check whether it passes the test #2. So I hit “Confirm and Send” button to open a ticket:

 
AAPL
 

As you can see this trade would require $2,221.70 margin requirement. This stock doesn’t pass the test #2 and is excluded from my trading list.

Now let’s take another stock, for example STX:

 
STX
 

Now, as you can see STX passes all tests:

 
1) it is a dividend stock

2) it needs $712.90 margin (less than $1,000)

3) it offers 0.82 credit per 8 days contract (more than 0.40)

4) it trades weeklys
 

Now I have a trade candidate. I do this with all stocks from my broad dividend stocks and evaluate them. Then I add those which pass to a smaller list.

 

 · Bullish or bearish bias

 

Above I mentioned that sometimes I adjust the strangle based on the bearish or bullish bias. If I feel bullish, I open a new trade with puts closer to the money and calls farther away from the money and vice versa.

Here is how I evaluate that.

I use a simple chart with a few oscillators on it and moving averages. I keep it simple.

Let’s take a look at STX stock.

I use two types of charts to quickly look at it to determine whether there is a bullish or bearish bias.

 
Here is the first chart:

 
STX
 

I use a Person’s Pivot Study (PPS) indicator. If a bearish signal is fired it charts a yellow down pointed arrow. If a bullish signal is fired, it charts a green upward pointed arrow. In the chart above you can see that STX has a bearish signal.

Then I use a MACD oscillator. I do not use its histogram. I only use the fast and slow lines and I look at what direction they are pointing. In the chart it they point down and there is no indication that they would be bottoming and reversing. So STX is bearish.

Lastly I use a TTM study. I use it in lieu of MACD histogram as it shows better the direction of the move. Here it also points down. But since it is already at the base line (made of the green and red dots) that indicates that we may be bottoming. The stock may not move under the line but reverse and move back up again as it did in August 2016. However, until this is clear I have a bearish bias.

 
Here is a second chart I use and look at:

 
STX
 

In this chart I use moving averages only. I zoomed the chart as close as possible so it is clear to see them. They are shown as dashed lines. I use 10, 20 and 30 days averages. I marked them with the yellow arrows.

I look at their direction and trend. From the chart you can see that they are no longer pointing up, they are moving down and they are about to cross each other. I also added smaller yellow arrows projecting the trend. It is visible that the 10 day average (violet dashed line) is about to cross down the 20 day average (orange dashed line) and both are heading towards the 30 day average (light blue dashed line).

Again, this is a clear bearish bias.

 
So now that we have the bias established lets see how the trade would look like if we were about to open a new strangle against STX:

 
STX
 

Because I have a bearish bias I would try to place my puts as low as possible and go for 36.50 put strike (three strikes out) while opening 38.50 call strike (at the money). By doing so I still would collect $72 credit (passes #3 test), the margin requirement is $717.40 (passes test #2) and I am giving the trade more room to go lower.

Of course, the stock may reverse next day and go back up. That would endanger my calls which will be in the money right away. Will that happen? I do not know and I do not care.

I trade only 7 to 10 days contracts thus giving the market little time to go against me for a prolonged period of time if that happens. And if that happens, my puts are so far away that they lose value quickly allowing me to roll the trade.

In my next post I will write a few words about trade adjustments what I do when the stock goes in a wrong direction.


 


 

Are you Ready to Trade?

If you like results of our trading open yourself an account with OptionsHouse.com and start trading with a low commission rates + free virtual trading tool!

Your new trading account will come with a paper money account and will be immediately funded with $5,000 of virtual money for you to test the options trading and if you join our trading group on Facebook you can get a guidance, ideas, and trading education. Before you commit your real hard-earned money you can use the virtual account to test our strategies, learn, and ask all questions you need to learn options trading.

Once you learn and get ready, start trading live account and earn monthly income similar to ours. And we will be happy to assist you with that.

Seize the opportunity. Open a new OptionsHouse Account Today! Open and fund an OptionsHouse account to receive up to $1,000 worth of commissions on online trades for 60 days.
 


 

 
 






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All Dividend Investing,  Options Trading,  Personal Finance
Posted by Martin December 30, 2016
2 Comments



 




Predicting the next stock move is just deceiving yourself


People keep asking me questions how do I choose stocks for options trading or what is my expectation, why I chose to trade one stock over the other, what if the stock fails, and what was my rationale behind a trade.

When they ask me for a trade reason, I usually tell them that I had none. Why do I need a reason to trade a certain stock?

I keep telling them that I do not predict stocks movement. I do not care what the stock is going to do or what others think about it.

I do not care what all the stock gurus in the entire world think, predict, or recommend. I trade what I see and not what I think the stock may do.


 


 

Are you Ready to Trade?

If you like results of our trading open yourself an account with OptionsHouse.com and start trading with a low commission rates + free virtual trading tool!

Your new trading account will come with a paper money account and will be immediately funded with $5,000 of virtual money for you to test the options trading and if you join our trading group on Facebook you can get a guidance, ideas, and trading education. Before you commit your real hard-earned money you can use the virtual account to test our strategies, learn, and ask all questions you need to learn options trading.

Once you learn and get ready, start trading live account and earn monthly income similar to ours. And we will be happy to assist you with that.

Seize the opportunity. Open a new OptionsHouse Account Today! Open and fund an OptionsHouse account to receive up to $1,000 worth of commissions on online trades for 60 days.
 


 

I once had a novice trader explaining to me his prediction of the stock’s next move. He spent hours creating his system, charting, oscillators, calculations, data recording, chart analyzing, and at the end he victoriously announced to me that he finally got it and that the stock would reverse at the overbought resistance at a certain price level.

It was a sure thing and there was no other way. His system told him, that it couldn’t go the other way around.

When the stock passed through his resistance and continued up without looking back he concluded that he needed more studying and tweaking his system, and that he wasn’t yet perfect in analyzing it.

Maybe adding a few more tools to his analysis would solve the glitch.

But all he actually achieved was his own deception.

He spent hours over the charts and analysis until he convinced himself that there was no other way around to trade the stock. He convinced himself so deeply that he couldn’t see any other alternatives. To him they were nonexistent.

He simply stopped seeing what I saw as a by-stander with a different perspective that there were no sure things in his analysis, no 100% sure resistances, overbought or oversold reversals or sure calculations with predictable outcomes. I wish there were some magical oscillators or calculations which would point to a trend reversal. But there are none. Nothing he did could ever predict what the stock or market would do next. There still was only a 50% chance that it would happen.

Later, he ended his work up disappointed and he concluded that he wasn’t yet ready to trade options because he hadn’t have the right tool to trade and he couldn’t determine which direction the stock would go.

All the time he was working on building up his own deception and disappointment.

In the past, I was doing the same thing. I too wanted to know where the stock will go and what the stock will do.

But you will never be able to find out. You do not need to know what the stock will do, but you need to know what you will do.

I keep saying it all the time. It is you who needs to know what you will do, not the stock.

And then you need to find a strategy and market (stock) which will allow you to trade around that. You need an instrument which will allow you to execute a trading plan for any outcome the stock or market prepares for you.

To me, this instrument are options. Only trading options allow me to trade what I see and change direction or adjust a trade should the outcome change. No other vehicle does the for me. If I buy and hold a stock and it starts falling in price I cannot do anything about it. I can close it for a loss but that’s it.

Over years in the market I collected enough losses already. I do not need more. Options allow me to adjust a bullish trade into bearish, roll, or do a magic which no other instrument provides.

I met novice traders who were afraid to trade and they kept asking me what would you do if you open a trade and it immediately turns against you? Don’t you want to know where the stock will go so you keep trading with the trend?

I only have two words to this:

Who cares?

It may happen that I open a trade and it goes busted right away. But who cares? I don’t!

I cannot predict where the stock will go.

I cannot predict if the trend will continue or it will reverse the next day.

And because I cannot predict it I do not waste my time doing it. I do not spend hours drawing pictures and marking up all reversals and predicting where the market will go, like this guy from Stocktwits who spent hours drawing this chart and predicting that SPY would go higher to the “rounded topping pattern” with a”exuberance” with “possible overshoots” will happen and then the market reverses and will go down to around 207 level:

 
Jake Wujastyk Prediction
 

None of it ever happened.

The stock market continued up to about 217 level, then corrected slightly to 214 level and continued higher and reached 220 level. I bet the guy continued re-drawing his chart as long as he finally got it right and his bearish prediction got correct so he could get celebrated by all his followers how great job he did. I do not know because when I told him what a futile job he was spending time on and that all he just created was a children coloring book he angrily blocked me. But considering reactions from his followers I can deduct that this was probably happening.

Here is another “great” prediction from another guy who predicted that in September the market would crash to 1860 level (SPX):

 
Stupid Prediction
 

He drew all those green arcs to show that the market worked in some magical frequency waves and based on those waves it is now predictable to see that SPX was poised to crash to 1860 level. I sometimes wonder if these people really believe to their drawings and trade it or they just troll around.

Of course, we all know that none of it ever happened.

 
I re-draw his “study” and added a few questions to it:

 
Stupid Prediction
 

He blocked me for bashing his work.

All, these guys ever achieved, was their own false conviction and deception. They just deceived themselves. And if they ever traded based on their own deception they probably ended disappointed with the outcome of their trade and trade analysis.

If you try to predict the market or stock, you are just deceiving yourself and obstructing a clear view of the future. You are just blinding yourself, paralyzing yourself from the next move. And you would end up unable to adjust a trade or get out. Instead, falsely convinced, you will be adding more to the trade, throwing good money after bad ones thinking that your analysis will be correct one day.

So how do I trade then when I do not analyze the stock, do not “study” the stock, predict it’s move, or try to spot reversals?

I trade what I see at any moment in time. One day, I open a trade based on the stock price action and then sit on it.

When the situation changes I change the trade (adjust). And I do it again based on the current price action and not any of my false prediction or expectation. And I keep doing this for the rest of the life of the trade.

I like to trade strangles. I believe they are a great strategy maximizing you profits more than any other strategy. And they also offer a great flexibility in adjusting or converting a trade. Like no other strategy. Well, except single option legs, though (it will always be the easiest to adjust a naked put for example).

It was a long way for me to end up with strangles. You may know, if you follow my blog, that I started with stocks, later added options, naked puts, then spreads, and again puts. Later, I added naked calls and landed with strangles today.

In my next post I will describe how I choose stocks to trade, build a strangle, and trade it.
 
 






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Posted by Martin December 26, 2016
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DIVIDEND CAPTURE – TRIPLE PLAY (ETE)


I am placing a new trade order for the next few weeks using a strategy called dividend capture – triple play with Energy Transfer Equity, L.P. (ETE) underlying.

Normally, this strategy is a buy-write strategy where you buy 100 shares of the underlying stock a few days before the stock goes ex-dividend and sell a covered call against the position. If everything goes well, you capture the premium on the covered call, dividend, and maybe a little profit on a stock if you happen to sell higher then your purchase price.

If you want to learn more about this strategy, I recommend you to join our trading group on Facebook. There are traders using this strategy a lot and they can help you to explain it and trade it. I can guarantee you that you will learn a lot in the group.


 


 

Are you Ready to Trade?

If you like results of our trading open yourself an account with OptionsHouse.com and start trading with a low commission rates + free virtual trading tool!

Your new trading account will come with a paper money account and will be immediately funded with $5,000 of virtual money for you to test the options trading and if you join our trading group on Facebook you can get a guidance, ideas, and trading education. Before you commit your real hard-earned money you can use the virtual account to test our strategies, learn, and ask all questions you need to learn options trading.

Once you learn and get ready, start trading live account and earn monthly income similar to ours. And we will be happy to assist you with that.

Seize the opportunity. Open a new OptionsHouse Account Today! Open and fund an OptionsHouse account to receive up to $1,000 worth of commissions on online trades for 60 days.
 


 

However, in this trade, I am going to add another layer to this strategy and I will start selling naked puts first (if you are in an IRA account, it would be cash secured puts or CSP). I guess, I should call this modified strategy a quadruple play then.

This would be the true strategy of:
“Sell puts as long as you get assigned, then keep the stock, collect dividends, and sell calls as long as you get assigned.”

 

 · ETE ex-dividend day

 

The company hasn’t announced the ex-date yet but from previous records ETE had ex-dividend date every February 4.

Thus we may expect that it will be same case in 2017 and ETE will also have the ex-date in February 4th, 2017. We will however watch this carefully and adjust our strategy accordingly.

In order to participate in the dividend capture play we must purchase the stock BEFORE February 4, 2017 to be able to receive dividends.

 

 · Dividend capture play step by step

 

As I mentioned above, I am adding another trade layer to this strategy and in the next few weeks I will be selling puts against ETE. We will be selling weekly puts capturing small premiums every week until the last week before ex-date. Then, a week before ex-date, we will let the puts to be assigned to us so we purchase the stock.

However, during this period of time, we will also manage our puts to stay safe. We will roll them if needed to play this game correctly.

Here are the steps we will be taking with this trade:
 

WEEK 1 – December 30th expiration

1) We will sell 1 ETE Dec30 19.50 strike put and collect a premium (approx. 0.26 credit).

2) If the Dec30 put expires worthless (we will not be buying it back this time) on Friday, December 30, we will sell another 1 ETE Jan6 ATM put to collect another credit.

3) If the Dec30 put ends in the money, we will roll the put into Jan6 either same strike or lower to collect another credit.
 

WEEK 2 – January 6th expiration

1) Now we have a new Jan6 put which we either sold as a new trade or rolled at the end of the previous week.

2) If the Jan6 put expires worthless on Friday, January 6, we will sell another 1 ETE Jan13 ATM put to collect another credit.

3) If the Jan6 put ends in the money, we will roll the put into Jan13 either same strike or lower to collect another credit.
 

WEEK 3 – January 13th expiration

1) Now we have a new Jan13 put which we either sold as a new trade or rolled at the end of the previous week.

2) If the Jan13 put expires worthless (we will not be buying it back) on Friday, January 13, we will sell another 1 ETE Jan20 ATM put to collect another credit.

3) If the Jan13 put ends in the money, we will roll the put into Jan20 either same strike or lower to collect another credit.
 

WEEK 4 – January 20th expiration

1) Now we have a new Jan20 put which we either sold as a new trade or rolled at the end of the previous week.

2) If the Jan20 put expires worthless (we will not be buying it back) on Friday, January 20, we will sell another 1 ETE Jan27 ATM put to collect another credit.

2) If the Jan20 put ends in the money, we will roll the put into Jan27 either same strike or lower to collect another credit.
 

WEEK 5 – January 27th expiration – assignment day

1) Now we have a new Jan27 put which we either sold as a new trade or rolled at the end of the previous week.

2) This time, we let the Jan27 put end in the money and let them get assigned to us. We buy 100 shares of ETE at the strike price. If the option will be OTM before expiration, we will roll it back into ITM to make sure it ends ITM and we get assigned.

3) When we get assigned, we will hold the shares through February 4th and we will be selling OTM calls.
 

WEEK 6 – February 3rd expiration

1) Now we have a new Feb3 covered call which we sold last week. We want to be well OTM so we will not get assigned early. If the stock moves higher during the week and our calls end ITM, we may choose to use a covered strangle strategy to move our calls higher. Another option will be that in the case of our calls getting ITM we may roll them into the same strike into the following week to avoid early assignment. If not possible, then we let it be and hope we won’t get assigned early.
 

WEEK 7 – February 10th expiration

1) We still should hold our covered calls from previous week.

2) This week, we are safe to liquidate our ETE position as we successfully passed through the record day (we held the stock before the ex-dividend day). We secured a dividend of 0.285 a share.

3) After the ex-date (February 4th) if our calls will be OTM we will roll them from OTM into ITM so we get assigned and sell our stock holdings at the very next expiration (if the stock stays at about the same level as the original assignment – we expect around $19 a share)

4) On Friday, February 10th, we expect our calls to be assigned and we will sell 100 shares of ETE. Our trade will be over.

 

 · Expected revenue

 

If everything goes as planned we will see the following profit estimate:
 
premiums from puts: 1.30 or $130 (0.26 credit x 5 trades) 6.66% profit
dividend: 0.285 or $28.50
premiums from calls: 0.20 or $20
 
Total estimate: 1.785 or $178.50 9.15% profit
 

If we happen to sell our shares at a higher price, we will have added profit on the shares too.

If the stock continues dropping after assignment, we will keep selling covered calls or covered strangles as long as we get out of the holdings.

 

 · Trade order for tomorrow

 

Here is our first trade for the next week:
 

STO 1 ETE Dec30 19.50 put
@ 0.26 credit limit day
 

ETE
 

If you wish to follow this trade live, join our trading group where I will be posting results of each trade week and potential adjustments to keep the trade within the desired range.


 


 

Are you Ready to Trade?

If you like results of our trading open yourself an account with OptionsHouse.com and start trading with a low commission rates + free virtual trading tool!

Your new trading account will come with a paper money account and will be immediately funded with $5,000 of virtual money for you to test the options trading and if you join our trading group on Facebook you can get a guidance, ideas, and trading education. Before you commit your real hard-earned money you can use the virtual account to test our strategies, learn, and ask all questions you need to learn options trading.

Once you learn and get ready, start trading live account and earn monthly income similar to ours. And we will be happy to assist you with that.

Seize the opportunity. Open a new OptionsHouse Account Today! Open and fund an OptionsHouse account to receive up to $1,000 worth of commissions on online trades for 60 days.
 


 






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Posted by Barney Whistance December 13, 2016
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Is Snapchat’s IPO Worth It?

Is Snapchat’s IPO Worth It?

Is Snapchat’s IPO Worth It?

 

Snapchat’s been making waves in the tech world starting with the famous refusal to sell the app to Facebook for an astounding three Billion USD. The gamble by Snapchat’s mastermind Evan Spiegel paid off handsomely when its valuation soared, to the surprise of many analysts. The company’s IPO is planned to be launched in the first four months of 2017 expected to be valued at a prodigious 20-25 Billion USD. This is the biggest IPO from an American tech company since Facebook which was valued at 81.2 Billion USD and more recently, the Chinese e-commerce giant Alibaba Group Holding Ltd, which was valued at a record USD 170.9 Billion just 2 years ago.

 

· Confidential IPO

Since Snapchat has registered revenues of less than 1 Billion USD this year, it has used its right under the U.S’s. “Jumpstart Our Business Startups Act” to secretly file for an IPO to test its waters while keeping its financials strictly confidential. Regardless, the IPO is going to be huge as Bloomberg reports that it can quite possibly reach upwards of 40 Billion USD. At this point, it’s safe to say that the possibility of it being a massive IPO is inevitable.

 

· Playing it safe

Even if we consider the worst case scenario, the company will be well worth over the three Billion USD which was offered by Facebook initially. Private funding and other vital factors currently value the social network at around 18 Billion USD already, proving the company’s stock to be immensely in-demand right now.

 

· Twitter and Facebook

Back in 2011, Twitter and Facebook had revenues valuing 108 Million USD and 3.7 Billion USD respectively. Twitter is experiencing loss recently and Facebook has been experiencing its net income ascending. Facebook’s effective innovative decisions have led to its success in the stock market constantly. Its strategy of literally buying all of its potential competitors has worked wonders. While the same can’t be said for Twitter.

 

· Fierce Rivalry

Unless you’ve been living under a rock, you would know that Facebook and Snapchat have seen some fierce rivalry in the past months as Instagram and Snapchat have been fighting head on to exceed its daily active user base. Instagram has a daily active user base of almost 300 million, which is double the user base of Snapchat. Snapchat is undoubtedly a threat for the big fishes in the realm of social media. After rejecting the Facebook’s buying offer of the platform, Snapchat is going head to head with Facebook.

 

· Snapchat’s secrecy policy

Secrecy is almost second nature to Snapchat’s way of doing things. All the news about its daily active user base and other important details only have been brought to light due to leaks. To gives you an understanding of its extent of secrecy, the employees working in Snapchat for years have never had a glimpse of their leader, Evan Spiegel. Augmented Reality World Lenses were launched recently without the knowledge of its own employees.

 

· The verdict

Snapchat’s IPO will definitely be worth it for investors as it has the potential to overtake tech giants by introducing a completely different form of communication to the masses. The way this app has retained its loyal daily active users and continues to innovate and bring new filters daily, it will most probably soar in revenue and pose to be a great investment opportunity. Snapchat looks like the next Facebook in the making.  Evan Spiegel has proven to the world he is an entrepreneur deserving our attention.

 






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Posted by Guest December 08, 2016
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Understanding The Basics Of Trading Psychology


If you’re interested in getting involved in trading, there are quite a few things to think about. You’ll need to find a good broker, find a strategy, think about risk management, and more. However, one thing that seems to go unconsidered by many beginners is psychology. The truth is that psychology plays a big role in your ability to profit in the market. Today, we’ll talk about the basics of trader psychology and why this is definitely something that you want to think about if you’re ready to start trading.

 

 · Human Beings Are Emotional Creatures

 

The truth is that we are all human beings, and as human beings, we are all emotional creatures. Love, fear, greed, and more are the primary forces that seem to drive our everyday lives. However, these same emotions can lead to big losses in the market if you’re not careful. At the end of the day, before getting started in the market, it’s important to understand basic emotions that the average person may not think about.

 

 · There Are 2 Driving Emotions In The Market

 

At the end of the day, there are only two emotions that will generally drive movement in the market. Those emotions include…
 

  • Fear – First and foremost, one of the emotions that tends to lead to big losses or lost opportunities for big gains is fear. Ultimately, we live in a world that is driven by money. When trading, you are putting that money at risk. So, it is natural to have a fear of losing that money. However, letting this emotion dictate your trading habits is a bad move. We’ll talk about how to avoid letting fear get involved later.
  •  

  • Greed – While greed doesn’t generally lead to missed opportunities in the market, it can definitely lead to big losses. As mentioned above, in a world led by money, our quest to get our hands on as much as possible can end up hurting us.

 

 · How To Avoid Letting Emotions Lead To Losses In The Market

 

For me, there has been quite a bit of success in a simple three step process. That process includes…

Step #1: Follow A Strict Trading Plan

In the world of trading planning is key. At the end of the day, by writing your trading plan down and following it to the T, you are keeping emotions completely out of the process. Your plan dictates when you enter and exit trades, not your emotions. So, before you get started in the market, make sure that you have a strong trading plan drawn up.

Step #2: Check Your Emotions At The Door

Never walk into the trading process in an emotional state. If something is going on in your life that’s leading to heavy emotions, it’s best to deal with what’s causing the volatility in your emotions before trading. After all, if you are already overwhelmingly happy, sad, or otherwise, these overwhelming emotions can cause you to stray from the path to profits as you trade.

Step #3: Know When To Walk Away

If you start trading and you notice that your emotions are getting the best of you, it’s probably time to walk away. Start by getting up and going for a walk around the block and trying again. If that doesn’t work, give yourself the day off. It’s better to not gain than it is to lose!

 

 · Final Thoughts

 

While we don’t often think of emotions, if we do sit back and think of them, we tend to find that they dictate some of the most important decisions we make in our lives. While emotions do have their place, they don’t have a place in trading. So, before you get started, make sure you’ve got your emotions in check!






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November 2016 trading, investing, and dividends results


November is over and we are approaching the end of the year. This turned to be a successful year and I hope the next year will be even better.

However, our November trading returned mixed results. Something I haven’t experienced for the entire year and I am still baffled on what actually happened.

This month we reached our monthly income goal but our account net-liq got a severe hit.

I honestly do not understand why it was happening. Almost all our positions are safe and deep OTM (except a few exceptions in MNK and ESV), yet we saw a huge, almost 50% retreat from the last month account value! Below I am providing you with some details on the account numbers and explanation of what happened.

For November 2016 we planned an income of $3,800 dollars.

And we made $3,818.50.

I am happy about this result. I am not happy about my net-liq large drop though.
 

Our November dividend income was low. November is our dividend income weak month. The dividend income was $57.10 this month which was in line with other weak months. However, after a few months of dividend income annual drop (due to some dividend reductions) our annual dividend income started rising again.

We are now focusing on ensuring income for our ROTH IRA account which can be then invested into dividend stocks. That’s why we are not opening new dividend stocks trades and just reinvesting dividends. All other cash deposited in the account or generated by selling options is held in cash and waiting. In the next section of this post I am also explaining further in detail what my strategy in the ROTH account is.
 
 

Options Income = $3,818.50 (account value = $7,674.72 +202.19%)
Dividend Income = $57.10 (account value = $20,069.40 +32.56%)
 

If you wish to see details about each account, continue reading below.


 


 

Are you Ready to Trade?

If you like results of our trading open yourself an account with OptionsHouse.com and start trading with a low commission rates + free virtual trading tool!

Your new trading account will come with a paper money account and will be immediately funded with $5,000 of virtual money for you to test the options trading and if you join our trading group on Facebook you can get a guidance, ideas, and trading education. Before you commit your real hard-earned money you can use the virtual account to test our strategies, learn, and ask all questions you need to learn options trading.

Once you learn and get ready, start trading live account and earn monthly income similar to ours. And we will be happy to assist you with that.

Seize the opportunity. Open a new OptionsHouse Account Today! Open and fund an OptionsHouse account to receive up to $1,000 worth of commissions on online trades for 60 days.

 


 

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