24% & 16% Profits For Subscribers, AAPL Misses Earnings

Market volatility has been heating up and so has out trading. The Monthly Service has been on a roll recently posting a +24.4% gain in the 67 days since May OpEx. This week alone the Monthly Service has closed the following 2 profitable trades: 1.) IWM Bear Call Spread (part of an Iron Condor) for a +12.82% gain in 10 days 2.) DIA Bear Call Spread (part of an Iron Condor) for a +9.20% gain in 7 days The Monthly Service has also used the market volatility to deploy new spreads expected to profit during the August options cycle. The Weekly Service has been on a roll as well posting a +16.1% gain in the past 12 days. Today the Service closed a put debit spread we legged into from a simple long put position on SPY for a whopping +209% profit in 5 days; that was after realizing +17% profit on the first half of the long put trade. The Weekly Service also opened a long SPY call position near the end of the trading session today. Contrary to some beliefs, this was not an Apple (AAPL) earnings play! Instead, it was a oversold market play. Would the position have benefited from an AAPL earnings beat, sure. However, the bar is so high for the "Jesus Stock" that we have been waiting for an earnings miss. Now let's put things in perspective: earning $8.82B in one quarter is nothing to sneeze at. However, it was less than the street expected. A potential AAPL disappointment is one of the reasons we selected the deep ITM strike for our trade. Being deep ITM provides us a buffer to the downside in the event the SPY experiences further downside. The SPY has has multiple levels of support just below today's close starting at 133.75, 133 (the location of the 50 day MA and today's low), and solid chart support at 132. For perspective, the SPY is already down -2.77% in 3 days. A move to 132 would be a move -4.1% in one week. If the downside is further tested this week we can sell a call against our long call, creating a debit spread, thereby reducing our exposure drastically. If our trade doesn't work out as planned this week in the Weekly Service after creating a debit call spread, if requiraed, as detailed above, we can simply roll the trade out to provide the time we need. The rising 200 Day MA is just below near 131 which should abate further declines in the short term. For the record, our analysis indicates a rolling over the markets toward in the near future but there has not been an event large enough to trigger the massive decline just yet. Thus, a relief bounce should be positioned for near term. Stay tuned! Thanks to you all and have a great day!!!