Day Trading Options and Stock Split Strategies

Post on: 24 Июнь, 2015 No Comment

Day Trading Options and Stock Split Strategies

With Calls, Puts, Verticals & Iron Condors.

Also — Taking advantage of theta drop using the Debit Butterfly on the SPY.

Established in 1999, SplitMaster.com is an educational site that publishes stock and option trading strategies with a focus on day trading and swing trading, using options. Following the SplitMaster.com strategies is a great way for Investment Clubs or individual traders to put their portfolios to work. Making use of Debit and Credit Butterflies has produced some fantastic results for our strategies. These kind of option combinations allow for profits to be made whether the underlying stock goes up or down. Check out all of our strategies and see which one appeals to your style of trading. Perhaps all the strategies will fit your style.

- Auto traded for our members by some of the top auto traded brokers such as eOptions, and Global Auto Trade as well as other top brokers.

The Strategies

All New!!

Advanced Member Trades-

Our newest strategy has started out with a bang bringing in some big profits. These trades make use of more advanced option combinations such Straddles, Strangles and Debit Iron Condors. At times we may go into credit spreads depending on a particular trade. This strategy targets stocks that are announcing earnings and stocks that may have unusually big option volume kicking up on a particular day. The main thing is we target stock that are moving big, or are anticipated to move big. Many time these trades are overnight trades. If a stock is a big enough mover, we may enter the trade the afternoon before a company announces its earnings and close out the next day after the announcement has been made. If the stock moves as anticipated, we will make profit whether the stock goes up or down.

Based on our historical data base and information provided by services we use, we can determine which stocks are likely to make such big moves. Check out our past results.

This strategies does have higher risks and at times can require a bigger investment than our other strategies. But it can also produce much bigger profits. The strategy is really meant for option traders with advanced knowledge of options and are able to make their own trades. It is not for auto trading.

WIN RATE YEAR TO DATE: 80%

The Split Strategy

The Split strategy is trading vertical Calls on stocks that have announced a split. They have to qualify to our proprietary criteria. If they do qualify, we enter the trade the day of the announcement and go for a .40 to .60 profit. This can happen in one day or take a few weeks to hit our target. In the testing and trading we have done, most have reached our goals within 5 days. Actually, SplitMaster is no novice to stock splits. We originally launched our service in 1999 on the Internet and stock split strategies were our main focus. Those early day stock split strategies experienced a terrific success rate. But in 2008 when the great recession hit, stock splits basically disappeared for obvious reasons. However, this year we are seeing splits start to come back. Risk Level — low to medium. Read More

WIN RATE YEAR TO DATE: 100%

The SPY Debit Butterfly

How much value would you place on a simple strategy that has a win rate of 100% so far in 2013? If that sounds too good to be true, consider this. We not only have many members following our strategies, we also have some of the top auto trading brokers in the industry trading our strategies. We could not make such a claim very long if it were not true. So how does it work? Risk Level — low to medium. Read More

WIN RATE YEAR TO DATE: 100%

The Indicator SPY

Day Trading Options and Stock Split Strategies

Our most active option strategy is currently the Indicator Play. This is a day trading strategy based on the SPY. On this play we trade a single Call or Put. It is a simple in and out trade. Our signals may indicate an up or down play (Calls or Puts). Each trade lasts from a few minutes to a couple of hours, depending on the movement of the Spy. It is a conservative trade, in that we look for a predetermined profit and place a conservative stop loss in case the play goes in the wrong direction. The profit levels are typically 10% to 15%, which is a substantial percentage. The investment per trade is small, typically $100-$200 per contract. On occasion we also make use of the vertical spread to make the trades. Risk Level — low. Read More .

WIN RATE YEAR TO DATE: 66.67%

Earnings Plays — Butterfly trading

Throughout the years we have published several day trading strategies. Currently we are publishing a very exciting and successful credit trading strategy, called the credit Butterfly. The action of this trade is the exact opposite of the debit butterfly. With the debit butterfly we want the underlying stock to stay within a certain range. With the credit butterfly, we want the underlying stock to move out of a certain range and the more it moves the better. It can be up or down as long as it moves. We use this combination option strategy to trade stocks that have a history of gapping big after they announce their earnings. There are two special features to this trade. You enter the trade by putting a credit in your account. In other words, not a penny is spent to get into the trade. Rather, a credit is given for entering the trade. It is an overnight strategy and depending on the move of the underlying stock, your profit can be substantial. Risk Level — Medium to High but with a chance of bigger profit. Read More .

WIN RATE YEAR TO DATE: N/A%

Stock Split History

When SplitMaster.com opened its virtual doors in 1999, our strategies were based on stock splits — thus the name SplitMaster. We had a fantastic run with our two stock split strategies. One was called the Basic Strategy. This was based on trading a stock within a 15-60 day window around the actual stock split date. Our record was impressive as you can see in our Past Results. The other strategy was called the Big Dipper, and it was based on the same stocks. However, occasionally those stocks would take a temporary big dip in price. When that happened, we seized the opportunity to do a cost averaging strategy, and trade more of that particular stock. By looking at our Past Results, you can see that this strategy was also very successful. Read more .

However, around the time of the Great Recession, stock splits started to dwindle and became almost non-existent. So we put our efforts into our day trading strategies and here again the Past Results will show how successfully these strategies filled in the void for the stock splits.

Browse around our site and if you have any questions regarding our stock and option strategies, trading SPY indexes or butterfly trades, do not hesitate to email us at contact@splitmaster.com

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