Hey, stock market traders. Welcome back to the channel. If this is your first time here, my name is Karl, Karl with a K. And I’ve been trading stocks and options online since the mid-1990s. If you’re here to learn about trading or to figure out if a stock or options quotes on YouTube is worth the money, then make sure to subscribe to the channel. On Monday, June 22nd, 2020, I signed up for David Jackie’s Best Stock Strategy Alert Service. The cost for this service is $19 for a seven day trial. Then $349 per month. I’m taking this course to share my experience. I want to make it clear that I am not giving away any proprietary information about Best Stock Strategy Alert Service. And I’m going to give my personal experience and opinion over taking the course on a daily basis over a two to three week period.
As soon as I got into the Alert Service, I uploaded an app on my iPhone called WhatsApp. The app is pretty popular so many of you may be familiar with it. The way I understand it is that it is an app where someone can send a text to multiple people at once, like Twitter but it’s texting. From what I gathered, I will receive screenshots of his trades on WhatsApp in real time and I can then just copy his trades. I will set up a $25,000 paper trading account and do my best to follow his trades. I did not take a course to be able to follow the trade alerts. Although David Jaffe does have a course, but I don’t see anywhere where David recommends a course as a requirement in order to follow his Alert Service.
This service claims to sell option premium on large cap companies. One are the things that makes me leery about this is that David Jaffe is picking a direction of the underlying. In other words, he’s looking to predict the future by betting that a stock will go up or go down. David Jaffe piqued my interest, because he is constantly calling out competitors as a scam and I think I should take a closer look at what he is doing. Maybe he is a scam. I look forward to following his Alert Service and sharing my experience. The following are daily recaps on Week One of David Jaffe and Best Stock Strategies Alert Service. This is Karl Domm with The Real P&L Channel. Today is Monday, June 22nd, 2020, and today is Day One with David Jaffe and the Best Stock Strategy Alert Service. Setting this up was really easy.
I just got this app called WhatsApp. You may already have it. It’s a way to communicate. It’s like texting back and forth, but he can send out a mass text or an alert, and so I just wait to get an alert from him. And today, being Day One, I got an alert where I opened up this spread right here on Apple. So I sold the 375 call, bought the 385 call. He did have another option where you could just sell the 375 call naked. I typically don’t like to go naked. I’d rather trade spreads. So I had a choice, so I took the spread. And so that was pretty easy, and I actually got a better price than what David got. He put the alert out. I wasn’t in a big rush or anything. I went to the Trade tab here, made my trade, and got a better price than him, which is nice. And so now I’m just waiting to hear from him to see what to do.
I did make one mistake here. He did say that he was going to buy JPM, five of them. So I went ahead and bought the five, and then I quickly realized when I read in more detail, and it says on the screen here that he actually bought these to close out a position. I didn’t know. I didn’t read in detail. It’s my first day, I make mistakes. So I immediately closed it out and I didn’t make or lose any money here. But those are the mistakes you make sometimes maybe when you sign up for a service. And, again, you can see here, I started with the paper money account with $24,927. So maybe it’s down $60, but this trade is still open so we’re going to see how this trades does overall. Being open and down. That’s not really a big deal to me, and we’ll just see how it ends up when he decides to close it. We’ll see whether this particular position makes a profit or not. Okay, so that’s Day One with David Jaffe’s Alert Service. And remember, if you want a credible trading system, get the Financial Gurus’ Real P&L.
Today is Tuesday, June 23rd, 2020. This is Karl Domm with The Real P&L Channel, and it’s Day Two with David Jaffe and the Best Stock Strategy Alert Service. So the first thing that happened today was we received an alert from David to roll Apple. He had a short call, and, of course, I had a call credit spread. So I thought initially, “I’ll just roll my whole spread to another spread into the strangle.” He’s got a short call or a short put, and when he rolls, he’s rolling into a strangle. Because a lot of times, if you’re losing with a position and you roll it, it’s going to cost you money. So he makes up for the difference by selling another put or another call. In other words, he tries to sell. It looks like he tries to roll this position for even, but then that also adds a little bit of risk, because then you’re adding a put or you’re adding a call. So now you have a put and a call rather than just one of those two items. In this case, he only had one call.
So it’s an interesting concept to make sure that you keep your credit, that you don’t pay debits moving into new positions when you’re rolling when the trade goes against you, which is pretty interesting. Initially, I thought I could just roll the whole spread, but I realized that I needed to get out of my spread position and then just reopen the strangle. What I realized was that the positions, you can see it here, he rolled the call up and he opened a new put, but he did it in a different expiration cycle. And you can see here, I got in a hurry and actually created that rolling position. As soon as I put that position in, I realized, wait a minute, one of these has a different expiration. So I canceled that order. And then, again, I did it individually. I sold my whole position and then I individually went in, sold this call, sold this put. So now I do have these new positions on. Let’s look at that from the Analyze tab.
Okay, so you can see the position here. It’s a strangle to see what Apple was trading at. 370 right here, so we’re in the middle of this strange looking strangle. And the reasons why these lines are curved is because you’re dealing with two different expiration cycles, but you’re right here in the meat of the trade. So you’re waiting for time to go by so you can come up into here, where, of course, the overall count is down, because, let’s see, what are we down here? 750 bucks. That’s just because Apple just totally went against the naked call there, and just went up today, what was it up? Three and a half percent, so that’s a pretty big move that went against the position. And that’s why David rolled it. You can see here where I made another mistake. I was looking to open a call, but I got in a hurry there and I opened a put.
So I realized that right away and then I just closed it for a little five cent loss. So I got a little ahead of myself there. And then later on, a little bit later on, David sent out another alert on NOC. He wanted to sell three puts, and you can see here that I have two naked positions. So my buying power is used up pretty good. I only have $6,300 left. So when I went to open this in OC, it got rejected. And at that point, I just pretty much decided that I’m not going to trade that particular trade. My thought process at this point is if we end up rolling a position, I’m probably not going to spread it off, because it gets a little complicated. But when I open new positions, I’ll probably spread it off. So what I’ll probably end up doing is look to open this NOC trade as a spread.
But the problem is, by the time I went to go in, I wasn’t getting a good price. David got $1.20 on it, and currently let’s see what that thing is worth. Yeah, it’s only worth 95 cents. So I wouldn’t be getting the amount of money that he got. So I missed that trade, which is fine. That happens. So I have my Apple trade, and we’ll see what happens tomorrow. So you can see, I started on June 22nd with $25,000. I’ve got $24,285, and I still have what’s considered an open position, because it’s a rolled position. So I haven’t technically really taken any losses, and so I look forward to coming in tomorrow. We’ll see what the alert has to offer. Okay. So remember, if you want a credible trading system get The Real Portfolio P&L.
Today is Wednesday, June 24th, 2020. This is Karl Domm with The Real P&L Channel. It is Day Three with David Jaffe and the Best Stock Strategy Alert Service. One thing I’ve noticed is, typically, so far, when David sends out an alert, it’s usually earlier in the morning. I’m on the West Coast so it’s usually around somewhere before 7:30, within the first hour in the mornings, which is nice. I just need to wake up when the market opens, which I do anyways, and just pay attention to my phone and see if I get any alerts from David. No stress or anything. I think that once he puts the alert in it doesn’t mean that I need to hurry up necessarily and try to fill. I mean, I will try to fill as fast as I can, but that doesn’t necessarily mean I’m going to get a worse fill than him, because the pricing of the options tend to not move as much as the underlying.
And so the pricing that he gets, I’ll probably get the same pricing if I trade within a reasonable timeframe after the alert comes out. It’s not like one of the courses I took with Dan Parker, for example, when I literally had a second or maybe a second and a half to execute a trade after he called it out. That’s pretty intense. So I’m comparing that one, because that was my last course that I took with this one, and this one’s a lot more relaxed. Today, David called out JP Morgan. He called out to get short, an option that’s about 37 days until expiration. And he wanted to get short here at the trade place of $1.10. That’s the price he got, and I got the same price. I noticed that that was close to the 13 delta. In other words, according to my calculations, it has about a 13% chance of expiring in the money. But if David does what I think he does, which is gets out early, maybe takes 50% profit, the statistical laws of that trade losing money go down significantly. But we’ll see.
So we can see that the market was pretty volatile today, down over two and a half percent. So it was down pretty significantly. And if we look at the P&L, down about 175. So this account is actually down, oh, 760 bucks, but I’m not really concerned. Normally, I’d be concerned. If I was day trading, I’d be concerned, because I’d have to make it all up. All my positions would be closed out and I would have to make it up. But because the positions aren’t closed out and they have theta working in our favor, I’m not overly concerned, because we are playing a range with Apple. We don’t want it to go below 345 or above 385. It’s a pretty good range. And it’s currently 360. And then with JPM, we just don’t want it to go below 80.
And it’s currently at 95-ish. So it’s a pretty good buffer there. So I’m not actually overly concerned, to be honest with you. Selling naked though, typically, my personality, selling naked seems to be a little risky. But as long as I keep my size super low in check, I should be okay. And so that’s my takeaway for the day. My starting P&L was on June 22nd, was about two days ago with $25,000. Now it’s $24,216, but the trades are still open. And so I look forward to coming in tomorrow on Thursday. So remember, if you want a credible trading system, get The Real Portfolio P&L.
Today is Thursday, June 25th, 2020. This is Karl Domm with The Real P&L Channel. It’s Day Four with David Jaffe and the Best Stock Strategy Alert Service. Today, I’ve got a couple of alerts from David, but there were no recommended executions on any trades. He did give a commentary on his overall take on the market. He said that it’s a little bit wild. He wanted to wait for it to settle down a little bit before he went in and sold some premium, which is fine. I don’t really have any expectations coming in, except for that I’m going to make money. So if he doesn’t trade one day or a few days, that’s not what I am expecting. So I’ve heard him say many times that there are days when you shouldn’t trade and there’s time that goes by that you shouldn’t be taking trades.
So nothing out of the ordinary from what I expected is happening as far as not executing any trades today. And you can see that the market is up about 1% and you can see that the theta, the volatility, also came in and some of the theta kicked in for a couple of the positions, which is good and is what’s pretty much expected. The theta eventually is going to kick in, just from my experience with trading options. So not a lot to report for today. Remember, my starting P&L was $25,000. Now it’s $24,630. And I started that on June 22nd. That was Monday. Today’s Thursday. So remember, if you want a credible trading system, get The Real Portfolio P&L.
Today is Friday, June 26, 2020. This is Karl Domm with The Real P&L Channel, and it is Day Five with David Jaffe and the Best Stock Strategy Alert Service. So today was very similar to yesterday in terms of David, he did commentate on the market, but he didn’t give any trades or any executions. He wanted to wait and see if the market was going to fall further today, which it did end up falling further. So I guess he likes to trade in calmer markets, because the market did come down I would say significantly today, two and a half percent approximately. Let’s see how these two positions that I currently have look. If you look at them on the Analyze tab on the risk profile, this JP Morgan short. Let’s see, JP Morgan is trading around 92 and a half. And the short is located at 80.
Also, we’re still pretty far away. We’re down here at the short, and it’s trading here. So you can see that it’s got a little bit of a loss. But this one, the sizing is correct. It’s down 50 bucks, which is good sizing and correct sizing. With the Apple, I have too many shares on, but I decided to just leave it that way since that’s how I opened it. So if we look at Apple, it’s trading around 353. And let’s see what we have here. We’ve got a 385 call that we’re short. So we’re pretty far away from that, 385 right here. And we’re trading down this way, so we’re pretty far away. And then as far as the put 345, we’re getting close to that put. That puts it right about here, and the stock’s here, so we’re only about eight points away. So that put could get tested here sometime soon. And you can see the results of getting closer to that put, and you can see that the Apple position’s down $577 today. So still just following the alerts. We’ll see if we make money or not.
I know that David did mention that when he made the Apple adjustment, he said it’s one of the only adjustments he’s made all year. And so what I’m assuming is, based on the adjustment, if he makes an adjustment, that means that, that particular option and that particular underlying got close to being tested, which is not what he wants. So it’s like a situation where we made an adjustment there, which is rare, he said, and it’s a drag on your P&L. We’ll see if that’s temporary or whether that’s permanent. But right now, well, I started the account with $25,000 on June 22nd. That was Monday. Today’s Friday. And today, I’m down to $24,000. So I’m down $1000 or $976. So I look forward to seeing what David comes up with on Monday. Maybe he’ll open new trades. Maybe he’ll close some of these. I don’t know. But two out of the last five days, he did not make a trade at all, which is not unexpected. He did mention he doesn’t trade every day. So that concludes Week One with David Jaffe’s Best Stock Strategy Alert Service.
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