Did your trade turn out differently than the official Trading Club trade? Do you have
This content is only available for paid members.
If you are interested in joining Porter & Co. either click the button below now or call our Customer Care team at 888-610-8895.
I was wondering if there is the facility to check the result of each trade that the Trading club executes. This ideally would show the position, the date of purchase and the final result ( be that an action prior to expiration date or outcome at expiration date). For me this would be brilliant and give me the resource to compare my trades to that of the club.
Yes, we provide the executed price on each trade in each of our weekly updates.
In the “Portfolio Overview” section, we report the cost basis of every trade made that week, and also show the cost basis in our custom portfolio table (note: we report all prices net of trading fees and commissions).
You can also see the cost basis in the snapshot of the live trading account at the end of each weekly update.
For example, in this week’s update, we noted that we sold two SLV calls for $1.99 each. And you’ll see this cost basis in our portfolio table in the “Portfolio Overview” section, as well as in the snapshot of our tracking portfolio at the end of the update.
Both tables show the cost basis of all current trades in the tracking portfolio.
Thanks for your response, I think I may not have been clear enough in my question. What I’m really trying to do is being able to compare ” all historic trades and outcomes” against my own actuals. As sometimes happens, I may not be able to execute any recommendation at the same cost as you ( buying 24 hours after subscribers). Hope this clarifies what I’m looking for.
I see. We could perhaps consider something like posting the monthly statements for our tracking account, which would show the full list of every trade over time.
I’ll discuss with our publication/web team and see if this is something we can do.
Hello Ross,
I have a theoretical question on the $600BTO put trade for $11.12 in November. If you were to have missed that trade initially and purchased the $615 put trade on 12/9 for $10.98 (1/16/26 exp) and now sat on a 70% gain in 8 days, would selling the put now at a substantial gain fit in with Trading Club Thesis or would you ride it out? Just curious.
Thanks,
BP
Hi BP,
I unfortunately can’t provide guidance for what any individual should do with any particular trade, even in theoretical terms. But I can say that we’re planning to hold our QQQ put position in the Trading Club at this time. And given the recent weakness showing up across technology stocks and the broader market, I feel very good about keeping this protection in place in the current market environment.
In general terms, the key to remember with our hedging approach is that we’re treating this like an insurance contract within an overall portfolio. So to use our familiar car insurance analogy, we don’t want to cash in the contract for a partial payment on a fender bender, if that means we ultimately leave ourselves exposed to a collision that could total the vehicle. And if no major accident occurs and the contract ends up expiring worthless, it hopefully means the rest of the portfolio is in a position to continue generating profits that more than offset the cost of the contract.
Hope that helps.
Thanks,
Ross
Understood. Thank you Ross
I love this service. Thanks to Ross and Porter for thinking of this and doing this.
I understand why we purchased protection to our portfolio by buying the puts on QQQ. My question is, why did we pick Jan and Feb? Why not go out longer? If the market doesn’t correct or go down in Jan and Feb, will we just continue to buy the puts our 30-60 days?
Happy to hear you’re enjoying the service!
As for our current hedging strategy, we’re aiming to line up our put purchases on about the same quarterly cadence as our option selling strategy. However, we want to have that protection in place as older positions expire and we put new capital to work. So for example, consider our latest QQQ put trade that was originally recommended at the end of October. This provided a hedge against a previous batch of expiring options on November 21, as well as our next set of trades placed in early December.
Our plan going forward is to follow a similar strategy. As we continue generating premiums with each quarterly trade series, we will continue reinvesting a portion of proceeds from option sales into purchasing put options that expire over the next roughly 90 days.
So if the bull market continues through January and our current put position expires worthless, we will then buy additional contracts that go further out in time. And along the way, if these hedging contracts expire worthless, we’re ideally making enough money from the rest of the portfolio to cover the cost many times over.
I’m still learning from the concepts explained in the trading club, and have a question about the mechanics of an option trade that is heading in the right direction on a Put in the money. Given the discussion around shorts, I know Carvana was an example of a company with potential downside. Understanding the short term run-up of almost 40% after the announcement of s&P 500, but intrinsically it does not affect it’s P&L, so I thought the stock price is artificially high now (~460) and given the very high per share price, buy a Put on the stock to limit my downside if the stock continues higher, but benefit if the stock falls back to fair value. So far so good on that thesis (Put is up about 50%) and now the price is close to the strike price with an expiration on Jan 16th. My question is – What are the mechanics of this trade as it nears the expiration if the stock is in-the-money but I don’t have the free cash to buy the stock. I don’t want to own the stock as well as I’m not a big believer in it. My thesis is that logical support level may be 100 points lower than where it currently is ($430 strike) – how close to the expiration date should I hold this put option. What is a way to position for this situation to maximize the time for the stock to fall more, but not let the option execute given my lack of free cash on a non-margin account.
When you own a put option, the mechanics of the trade at expiration is that the put will convert to a short sale of 100 shares of stock for each option contract. But if you do not have a margin account, or otherwise do not wish to exercise the option into a short sale, then you must close the position before expiration.
Determining when to sell is of course a decision that only you can make. What I can say is that the option value will converge with the “intrinsic value” as the expiration date approaches. This is defined as the put strike price minus the current share price. So for example if you own a $450 strike put option and the stock currently trades at $430, the intrinsic value is $450 – $430 = $20 per share (or $2,000 per contract, based on the 100-share multiplier).
Up until the expiration date, the option price contains additional embedded value to account for things like the remaining time value in the option, implied volatility, etc. But those factors will slowly erode and the option will converge with intrinsic value as the expiration date approaches. So deciding when to sell is a question of whether you believe the share price has further to fall by the expiration date, creating more intrinsic value that offsets the loss of embedded value from the other option pricing factors, or whether you’d rather lock in profits at the current price.