Trade of the Year Tuesday – Our Top Pick for 2018 is:

Our Trade of the Year is here!  

Each year, we put together an options spread that has the best chance of returning 300-500% on CASH!!! over the next 24 months.  The chart on the right is from my appearance on Money Talk, where I often announce our Trade of the Year but I wasn't on until Dec 14th and we made our pick around Thanksgiving so that 2015 Trade of the Year was:

  • Buy 20 AAPL 2017 $90 calls at $26.50 ($53,000) 
  • Sell 20 AAPL 2017 $120 calls at $13 ($26,000)
  • Sell 20 AAPL 2018 $85 puts for $9.50 ($19,000) 

The net cash outlay of that trade was $8,000 plus the margin for promising to buy 2,000 shares of Apple (AAPL) at $85, which would be $170,000.  Of course, AAPL was well above the target and the trade returned $60,000 for a $52,000 (650%) return on cash – not bad for two year's work!  

While Apple is still a staple of our portfolios, it didn't make the cut in 2016 when we went with the Natural Gas ETF (UNG) and our trade idea for them was:

  • Buy 100 UNG Jan $5 calls for $2.65 ($26,500)
  • Sell 100 UNG Jan $10 calls for 0.65 ($6,500) 
  • Sell 50 UNG 2018 $8 puts for $2.10 ($10,500)

That works out to a net cost of $9,500 and pays $50,000 if UNG is above $10 in January and stays


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