Day Trading the SPY and Earnings Using Calls and Puts

Established in 1999, SplitMaster.com is an educational site that publishes stock and option trading strategies with a focus on day trading using options

Options on SPY

Our most active option strategy is currently the Indicator Play. This is a day trading strategy based on the SPY. Our signals may indicate an up or down play (Calls or Puts). Each trade lasts from a few minutes to a couple of hours, depending on the movement of the Spy. It is a conservative trade, in that we look for a predetermined profit and place a conservative stop loss in case the play goes in the wrong direction. The profit levels are typically 10% to 15%, which is a substantial percentage. While the investment per trade is small, typically $100-$200 per contract, profits add up when you take into consideration the 80% win rate we had in 2012. It can become a nice extra income stream. While past performance is no guarantee of the future, we believe, our years of success speaks for itself. Read More.

Trading Earnings

While, throughout the years, we have published several day trading strategies, we are currently publishing a very exciting and successful credit trading strategy, called the Butterfly. We use this combination option strategy to trade stocks that have a history of gapping big after they announce their earnings. There are two special features to this trade. You enter the trade by putting a credit in your account. In other words, not a penny is spent to get into the trade. Rather, a credit is given for entering the trade. It is an overnight strategy and depending on the move of the underlying stock, your profit can be substantial. Read More.

Stock Split History

When SplitMaster.com opened its doors in 1999 our strategies were based on stock splits -thus the name SplitMaster. We had a fantastic run with our two stock split strategies. One was called the Basic Strategy. This was based on trading a stock within a 15-60 day window around the actual stock split. Our record was impressive as you can see in our Past Results. The other strategy was called the Big Dipper, and it was based on the same stocks. However, occasionally those stocks would take a temporary big dip in price. When that happened we seized the opportunity to do a cost averaging strategy, and trade more of that particular stock. By looking at our Past Results, you can see that this strategy was also very successful. Read more.

However, around the time of the Great Recession, stock splits started to dwindle and became almost non-existent. So we put our efforts into our day trading strategies and here again the Past Results will show how successfully these strategies filled in the void for the stock Splits.

Browse around our site and if you have any questions, do not hesitate to email us at contact@splitmaster.com

[staff]

site development by pacific consulting group