Our new options trading service–at inthemoney.capital — has one of the lowest-risk, highest return trade we see in the markets – a one month option on Energy Transfer, symbol ET-NYSE. We see a 2.46% gain here in one month and a few days, or 27.91% annualized.
Our three previous trades netted us 2.04% in 21 days, 1.51% in 43 days and 1.81% in 32 days. These consistent base hits add up quickly–and all these trades are deep in the money covered calls that have very low risk. Often the stock can drop 8-10% and you still make money on these trades. (On this trade, ET would have to drop 17% to not make money!)
We detail those below.
This service is still free, and you can sign up for our next trade below.
My colleague Nathan Weiss and myself know Energy Transfer very well. It was one of our top oil and gas ideas last fall, buying the non-callable preferred (now ET.PR.I-NYSE) from Crestwood (CEQP was the symbol). It’s up 10% and a 9% yield.
Since our launch, In The Money has published three monthly options ideas – all of which have closed (or will close) ‘In the Money.’
The first came on October 27th, buying Tanger Factory Outlet (SKT-NYSE) shares at $22.60 and writing November 17th $21.00 calls (for $1.80), then collecting a $.26 dividend.
Tanger shares closed at $25.58 at options expiration, so the shares were called away and a $.46 (2.04%) return was made in 21 days.
Our November idea involved buying the iShares 20+ Year Treasury Bond ETF (TLT-NASD) for $87.81, writing December 15th $85.00 calls (for $3.80) and collecting their regular monthly dividend ($.2889) and the mid-December dividend ($.3105).
TLT shares closed at $99.15 on December 15th, so our shares were called away. As a result, the November trade earned a $1.59 (1.81%) in 32 days.
In December, we again chose the iShares 20+ Year Treasury Bond ETF (TLT) as our covered call trade, buying TLT shares at $95.63 then writing January 19th, $92.00 calls for $4.75.
With TLT shares closing at $96.52, and a $.3105 dividend having been received, it is highly likely the trade will close ‘In the Money’ on Friday the 19th, resulting in a $1.43 (1.50%) in 43 days.
HERE IS OUR FOURTH TRADE–ONE MONTH
OUR SAFEST TRADE IDEA SO FAR
WITH 2.46% POTENTIAL IN ONE MONTH
Our January covered call trade involves buying ET units at $14.04 and writing February 16th, $12.00 calls for $2.07.
Our January trade should generate a 2.46% gain (including an anticipated $.315 per unit distribution) if ET units trade at $12.00 (or above) at the options expiration – a 27.91% annualized return.
The trade breaks even if ET trades down to $11.66 – a full $2.39 per share (16.99%) below the current price.
