Only the NDX Bear Call Spread trade expired worthless on Friday August 17th. All 3 of the Bull Put trades (RUT, SPX and NDX) were closed out early and rolled to new trades expiring in September. Subscribers who did not close out their Bull Put trades were blessed with a very lucky and unusual event on the morning the Index set prices were set. The Fed action on Friday was long overdue but a real shock that immediately caused the stock futures and opening values to sore in value. In fact the 3 Indexes increased so much that all the Bull Put trades actually expired worthless for those who still had the trades open. This is a very rare event that is like a gamblers success or like winning the lottery. Closing the Bull Put spreads early and rolling to new trades was the correct strategy.
The problem for many subscribers last week was that their stop loss orders were executed during the day on Wednesday and Thursday. This left very little time to execute the new September trades. This is the first month ever that I had to close and roll 3 of 4 open trades. The total return this month was .006% ($85/$13,235). This break even return will only be realized when the RUT, SPX and NDX roll trades expire worthless in September. Since many subscribers had trouble rolling and covering their losses on closing the spreads in trouble I will be refunding all subscription fees collected from July 22 through August 17 next week. The MSFT Put option trade was profitable for the second month in a row. These 27.5 Put options were sold when the bid was .09 cents. These options brought for $3 a contract earlier this month were sold for $9 a contact.
New trades expiring in September will be emailed early next week. I want to see what direction the markets takes on Monday and Tuesday next week. I will continue to focus on selecting very safe trades.
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