2015-03-14 Ricardo Weekly Trade Image

Ricardo Sáenz de Heredia launched his first trade in his Premium Alerts service on Thursday. One of the three types of trades Ricardo sends to his subscribers are a weekly trade. This week's trade is already in the black.

Trade Entry

Ricardo sold an Iron Condor on the RUT for $6.45 and at the close on Friday, it is trading for $4.82. Ricardo already has a $163 profit per spread. That would pay for his monthly subscription already!

The Greeks

The option Greeks are:

Delta -25.15
Gamma -3.48
Theta 158.2
Vega -144.9

Plugging these values in the Brian Johnson's spreadsheet (you can get the spreadsheet by purchasing Brian's book here), we see these numbers:

2015-03-14 Ricardo Weekly Trade Brian Johnson Numbers Image
These are reasonable values for DTRRR and VTRRR. Dan Harvey likes a DTRRR of 2.0 or less so we're close to Dan's more conservative ratios. The high theta helps keep the ratios under control.

These trades typically come off on Tuesday I believe. You have a bit less market exposure than traditional monthly trades and you have four times the number of trading cycles so you can recoup losses faster.


While I wouldn't want my entire portfolio in this trade, it is fantastic for diversification. The current trade has an 89% probability of being profitable on Tuesday.

Weekly options that Ricardo trades are very good performers that can easily justify the cost of a subscription to Ricardo's Premium Alerts. I put a 2 lot on myself a bit later than Ricardo and I'm up +$184 in less than one day. Subscription paid for the month!