Trader of the Month – September 2018: Following on from last month’s nominations and winners. Certainly, Margaret and Maurice, whose first trade was a belter. Also, let’s take a look at another new client, showing again, that this is not beginner’s luck. Since it is all in the process.
In Addition, Ehsan recently joined us and has wasted no time in applying his new knowledge and strategy to his existing shares, and look at the result, 12% in the bank and out of the stock, perfect timing given the recent volatility.
From: Ehsan Kashanchi <ekasXXXXXXi@xxxxxmail.com>
Sent: Friday, 26 October 2018 1:31 PM
To: Andrew Baxter <email@example.com>
Subject: ***12% Profit from options …so happy 🙂 thanks***Trader Of The Month and this Week’s Classroom
First of all congratulations on the arrival of a new baby in your home 🙂
Here is great news that I love to share with you.
I have just finished one of my best experiences on shares and I am all over the moon (12% profit)
I have bought CCL (Coca-Cola Amatil) for $8.63 in June per share for SMSF and then sign-up for your class in June.
Then put sell call options for $9.50 (10.14%) Strike Price and Premium of $0.19/per share (1.86%) for the End of Oct Expiry Date.
My stock hit premium price hit yesterday and I bank in 12% profit from options trading.
To provide you with the background I followed your 4 guidelines:
Time to expiry (4-6 weeks as sweet spot)
Strike Price vs current price (Out of money)
IV (it was 29% for above ) –> Not within range but due to previous trades I found myself within the green zone
Take care of Loss ($8/share)
Honestly, I have SMSF and my gain is around 6%/ annual and the above example demonstrated how powerful options could be with minimal efforts. I hit 12% in less than 3 mths and if I accumulate this for 1 year picture is so amazing journey.
Thanks, Andrew for your incredible journey of cash creation.
When you look at this trade and compare it to Ehsan’s SMSF returns to date, it is pretty clear that learning how to apply the right strategy at the right time will genuinely help you win the game of money. 12% in 3 months is a nice return!
Well done for taking care of business and providing for your family – Congratulations, Ehsan, on a well earned title of Trader of the Month September 2018, from all of us in the AIE community.