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Friday, January 27, 2012

Webinar TOMORROW at 10:00 AM Central - Getting Your Option Portfolio Ready for the Next Big Move Down

Sheridan Options Mentoring Web site
Dan Sheridan is presenting a webinar TOMORROW morning at 10:00 AM Central (Chicago) Time:

Getting your option portfolio ready for the next big move down

These are the details for joining the live class:
------------------------------------------------

Getting your option portfolio ready for the next big move down

https://sheridan500.webex.com/sheridan500/onstage/g.php?t=a&d=662942771

Saturday, January 28, 2012 10:00 am Central Standard Time (Chicago, GMT-06:00)

Event number: 662 942 771

If the link above does not work, you can manually join this class by following these instructions:
1. Visit https://sheridan500.webex.com
2. Find the meeting "Getting your option portfolio ready for the next big move down"
3. Click the "Join" button
4. Fill in your name, email address
5. Submit the form
------------------------------------------------

We hope you can attend this event TOMORROW at 10:00 AM Central.


Regards,

Sheridan Options Mentoring
www.sheridanmentoring.com


Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
http://www.sheridanmentoring.com/index/method/c.unsubscribe/emailaddr/markrschultze.tset@blogger.com.html

Sheridan Options Mentoring Blog

Sheridan Options Mentoring Blog

Link to Sheridan Options Mentoring Blog

I’m not drinking the Kool Aid: time to start getting a bit short!

Posted: 27 Jan 2012 03:22 AM PST

He drank the Kool-Aid

He drank the Kool-Aid

I know the title sounds  a bit bold, but stay with me. Where is most of your money stashed? I'm not trying to get personal, I promise! But for  most of you,  I bet it's in your retirement account. Another question, will the stuff in your retirement account be happy if the market goes up or down? The answer for most of you is up! Your portfolio has a strong bullish bias for the majority. 2008 hurt so much because most of your assets were in the market when everything fell apart between September 2008 and March 2009 ( 8 months of torture). Do I know something you don't know about the market? Of course not. What I do know is that your portfolio is probably leaning long, the market is in the upper end of the range, and I'd personally like to start having a few puts around.

I'm going to focus on the SPY. Currently trading at 131.54. The 1,2 and 3 year high is around 135. You still have to respect the trend, which is up, but I'm starting to get some bearish soldiers ready to help out all my bullish soldiers who are getting a bit excited about the upside.

SETUP: Because the trend is up I would scale into some puts. What does that mean?  If my size is 9 contracts, I might buy 3 to start , then buy 3 more maybe at 133 in the SPY, and work up to 9.

STRATEGY: With SPY at 131.54, I might start nibbling and buy the March 127 puts at $2.00. Why March expiration? I want to give myself time and the option premiums are cheaper than they usually are. March is over 50 days from expiration.  Nibbling means buying maybe 30% of my intended size. You say, " Dan, the March 127 puts are trading at 2.28, how are you going to get $2?"  There is a phrase that says " let it come to papa", what does that mean? It means if the market is in a bit of a trend  don't be aggressive with the price. When  would this order get executed?  Probably when SPY hits between 132 ½ and 133. I might use a GTC order when entering this trade. What do you mean?  Because I am entering my price below the market, it make take a few days to execute, so a good till cancelled order means my $2.00 bid will stay active and I don't have to put in a fresh order every day. What if the market goes down before I make my put purchase? We miss it! That's part of the game. This is more of a passive put purchase plan, if I wanted to be more aggressive, I'd pay more. I'd be a little passive, respecting the trend.

Indicator to watch : If VIX hits 24-25 area, start evaluating your retirement account to see if you need some downside help. Not going to really elaborate on the VIX today, and don't want you to stop enjoying the upside bliss. But I want you to be aware of when the wind might be changing to the downside. Remember Mary Poppins !  24-25 area would be an indicator the market is starting to move down, but not out of control yet. Merely a warning worth looking at!

If the trade goes against me, I will discuss a few adjustments I usually use to fix a put gone bad.  Have a great day!

Tuesday, January 24, 2012

I'm not drinking the Kool-Aid: Time to Start Getting a Bit Short!

Sheridan Options Mentoring Web site

I know the title sounds  a bit bold, but stay with me. Where is most of your money stashed? I'm not trying to get personal, I promise! But for  most of you,  I bet it's in your retirement account. Another question, will the stuff in your retirement account be happy if the market goes up or down? The answer for most of you is up! Your portfolio has a strong bullish bias for the majority. 2008 hurt so much because most of your assets were in the market when everything fell apart between September 2008 and March 2009 ( 8 months of torture). Do I know something you don't know about the market? Of course not. What I do know is that your portfolio is probably leaning long, the market is in the upper end of the range, and I'd personally like to start having a few puts around.

I'm going to focus on the SPY. Currently trading at 131.54. The 1,2 and 3 year high is around 135. You still have to respect the trend, which is up, but I'm starting to get some bearish soldiers ready to help out all my bullish soldiers who are getting a bit excited about the upside.

SETUP: Because the trend is up I would scale into some puts. What does that mean?  If my size is 9 contracts, I might buy 3 to start , then buy 3 more maybe at 133 in the SPY, and work up to 9.

STRATEGYWith SPY at 131.54, I might start nibbling and buy the March 127 puts at $2.00. Why March expiration? I want to give myself time and the option premiums are cheaper than they usually are. March is over 50 days from expiration.  Nibbling means buying maybe 30% of my intended size. You say, " Dan, the March 127 puts are trading at 2.28, how are you going to get $2?"  There is a phrase that says " let it come to papa", what does that mean? It means if the market is in a bit of a trend  don't be aggressive with the price. When  would this order get executed?  Probably when SPY hits between 132 ½ and 133. I might use a GTC order when entering this trade. What do you mean?  Because I am entering my price below the market, it make take a few days to execute, so a good till cancelled order means my $2.00 bid will stay active and I don't have to put in a fresh order every day. What if the market goes down before I make my put purchase? We miss it! That's part of the game. This is more of a passive put purchase plan, if I wanted to be more aggressive, I'd pay more. I'd be a little passive, respecting the trend.

Indicator to watch : If VIX hits 24-25 area, start evaluating your retirement account to see if you need some downside help. Not going to really elaborate on the VIX today, and don't want you to stop enjoying the upside bliss. But I want you to be aware of when the wind might be changing to the downside. Remember Mary Poppins !  24-25 area would be an indicator the market is starting to move down, but not out of control yet. Merely a warning worth looking at!

If the trade goes against me, I will discuss a few adjustments I usually use to fix a put gone bad.  Have a great day!

Dan Sheridan


Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
http://www.sheridanmentoring.com/index/method/c.unsubscribe/emailaddr/markrschultze.tset@blogger.com.html

Monday, January 23, 2012

Next Saturday: Dan will help you prepare for the next big move down

Sheridan Options Mentoring Web site
Dan Sheridan invites you to attend a webinar on Saturday morning, Jan 28th, at 10:00 AM Central (Chicago) time.  The topic will be "Getting Your Option Portfolio Ready for the Next Big Down Move."

Please register for this event at 



We hope to see you at the webinar on Saturday!


Regards,


Sheridan Options Mentoring
www.sheridanmentoring.com
800-288-9341

Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
http://www.sheridanmentoring.com/index/method/c.unsubscribe/emailaddr/markrschultze.tset@blogger.com.html

Tuesday, January 17, 2012

Sheridan Options Mentoring Blog

Sheridan Options Mentoring Blog

Link to Sheridan Options Mentoring Blog

Options Safari: GOOG Earnings Iron Condor & APPL Bearish Butterfly

Posted: 17 Jan 2012 05:04 AM PST

Dan’s two shows for CBOE TV Options Safari this week are:

GOOG Earnings Iron Condor Spread

AAPL AAPL Bearish Butterfly Spread

 Download the Presentation Slides here

GOOG Price Chart

GOOG Price Chart

AAPL Bearish Butterfly

AAPL Bearish Butterfly

Join our free public forums at http://forums.sheridanmentoring.com.

Friday, January 13, 2012

Webinar TOMORROW at 10:00 AM Central - 2 Monthly Income Trade Ideas

Sheridan Options Mentoring Web site
Dan Sheridan invites you to a webinar TOMORROW at 10:00 AM Central (Chicago) Time. Dan will show you two monthly income trading ideas you can use today!

We will have the room open at least 30 minutes before 10:00 AM.

These are the details for joining the live class:

------------------------------------------------

2 Monthly Income Trade Ideas

https://sheridan500.webex.com/sheridan500/onstage/g.php?t=a&d=660340228

Saturday, January 14, 2012 10:00 am Central Standard Time (Chicago, GMT-06:00)

Event number: 660 340 228

If the link above does not work, you can manually join this class by following these instructions:
1. Visit http://sheridan500.webex.com
2. Find the meeting "2 Monthly Income Trade Ideas"
3. Click the "Join" button
4. Fill in your name, email address
5. Submit the form
------------------------------------------------

We hope you can attend this event TOMORROW at 10:00 AM Central!

Regards,

Sheridan Options Mentoring
www.sheridanmentoring.com
800-288-9341


Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
http://www.sheridanmentoring.com/index/method/c.unsubscribe/emailaddr/markrschultze.tset@blogger.com.html

Thursday, January 12, 2012

Join Dan Sheridan at the Iron Condor event of the year!

Sheridan Options Mentoring Web site

If you just can't get enough of Iron Condors and are committed to making Iron Condors your strategy du jour in 2012 --- this dynamic new seminar series is definitely for you!  Former veteran Market Makers Dan Sheridan, Sheridan Options Mentoring, and Peter Lusk, The Options Institute at CBOE, will join forces with three retail Iron Condor traders including Chris Smith, Head of The Option Club, Amy Meissner, Queen of Iron Condors and the Professor, Dan Harvey, for a 1 day Iron Condor "love fest" in Huntington Beach, CA. 

 

This seminar on Iron Condors is the first in a series of "hot topic" seminars, including Calendars, Credit Spreads, Diagonal Spreads, Trade Speculating and Technicals to be introduced throughout the year.  So, stay tuned!  

 

Register NOW and receive a $100 discount! Call Barb Kalicki at 312-786-7819 for this special discounted price of $399!


The Sheridan Mentoring Team

info@sheridanmentoring.com

800-288-9341

www.sheridanmentoring.com


Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
http://www.sheridanmentoring.com/index/method/c.unsubscribe/emailaddr/markrschultze.tset@blogger.com.html

Sheridan Options Mentoring Blog

Sheridan Options Mentoring Blog

Link to Sheridan Options Mentoring Blog

Time Bomb Butterfly – A Good Strategy if You are Bullish but Scared

Posted: 12 Jan 2012 07:55 AM PST

Dan just recorded a video of an SPX Time Bomb Butterfly.  This trade has low risk and a potential good return.

Sunday, January 8, 2012

Dan Sheridan's Two Monthly Trade Ideas - Jan 14th

Sheridan Options Mentoring Web site
Dan Sheridan invites you to a webinar to talk about Two Monthly Trade Ideas on Jan 14th at 10:00 AM Central (Chicago) Time.

Sign up for this webinar at 



If you have any questions for Dan, you can email him at dan@sheridanmentoring.com

We hope you can attend this webinar!


Regards,


Sheridan Options Mentoring
www.sheridanmentoring.com
800-288-9341

Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
http://www.sheridanmentoring.com/index/method/c.unsubscribe/emailaddr/markrschultze.tset@blogger.com.html