Piranha Options Trading
TURNING SMALL BITES INTO LARGE PROFITS
HOW I PLAN TO INVEST $1800 THIS WEEK.
April 27, 2020
TNA ETF is on my radar this week. The stock has massive upside potential as the economy rebounds from the virus. I believe that the stock price will rise as the stay at home order is lifted. The option premiums are at an all time high. Below are my options for TNA this week.
TNA Investment $1800 Option#1 (Max profit of $92.00 in 5 days)
Sell TNA $18 put @ $.92 expiration 5/1/2020 (5 days). Net investment $1800 with a Max profit of $92.00 (100 shares per contract x .92 per share in premium collected)
The chart contains the nearest OUT OF THE MONEY 5 day PUT options. One option I have is to sell an $18 puts with May 1 expiration. That will net $92 per contract sold. To Lower my risk I could sell the $17 option instead. This would net $59 per contract and has lower risk as TNA would have to fall below $17 to make the contract executable.
Option Chain for TNA
| SYMBOL | Action | Price | Option | Premium | %Profit | % Success | Max Profit | Max Loss |
| TNA | Sell to Open | $18 | PUT | $0.92 | 5.11% | 61% | $92 | $1708 |
| TNA | Sell to Open | $917 | PUT | $0.59 | 3.47% | 71% | $59 | $1641 |
TNA option#2 Investment $1893.00 (Max profit $257 -13.57% in 5 days)
Buy 100 shares of TNA stock @ 18.93 then sell an 21.00 OUT OF THE MONEY CALL option for additional profit. There is a small chance the the stock will rise more than a dollar or two within the next 5 days, so I like to sell an option that is just above the expected rise in price. The option chain below shows that there is only a 27% chance the stock will rise above 21.00 in 5 days. I will receive the premium regardless of the stock price at expiration. but if it does rise above 21.00, my sell price will be locked at 21.00 plus the .50 premium collected and a 5 day profit of 257.00 less commissions.
| 1893SYMBOL | ACTION | PRICE | PREMIUM FOR SELLING OPTION | MAX PROFIT IF OPTION EXPIRES OUT THE MONEY | % OPTION EXPIRES OUT OF THE MONEY | MAX PROFIT IF OPTION EXPIRES IN THE MONEY | % OPTION EXPIRES IN THE MONEY | MAX LOSS |
| TNA | SELL TO OPEN | $20 | $0.79 | $79.00 | 61% | $187.00 | 39% | $1814 |
| TNA | SELL TO OPEN | $21 | $0.50 | $50.00 | 73% | $257.00 | 27% | $1843 |
The eat and run strategy of investing
In 2020 buy-and-hold may make you really broke! When the market took a nose dive in February 20, 2020, millions of Americans lost large portions of their investment dollars because of an invisible enemy, COVID-19 Fear and uncertainty caused many to sell everything and run for cover. Could this be the end of the buy-and-hold strategy that has worked for so long. You may have heard that when a door closes, a window opens, often this is true. Likewise, as the buy and hold strategy ends it may be a great time to employ another strategy.
Since the markets are in turmoil there’s a lot of volatility created in this environment. This turmoil, translates into high premiums paid for stocks options. Many great investors have said the best time to invest is when everyone else is running away
Eat and run strategy is to be in and out of the market very quickly, collecting small gains each time.
For more info check out selling Puts and Calls for weekly profit.
The Blessing audio
By Tanner Forsyth
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Piranha Options Trading 
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