New Trade Instructions for My Next “Money Doubler”

I don’t do this often. But today I’m giving all my Power Profit Trades subscribers a chance to join in on the Money Calendar’s latest trade.

This one’s kind of special, you see…

It’s one of the most dependable “money doublers” out there.

We’ve made this exact same trade on this exact same stock twice before – in the last three months – and we took triple-digit profits both times.

Now it’s your turn. I’m going to walk you through our latest trade, step by step, with detailed instructions on how and when to enter the trade, how to limit your risk, and when to get out.  Of course, like all of my recommendations, this trade has the potential to return 100% in the next couple of weeks.

Here’s everything you need to get started…

Attacking PCLN into Earnings Season

Over the last few weeks I have made quite a case to my Money Calendar Alert subscribers that October was going to be the month of the big bounce.

And in just the last few weeks we have seen double- and triple-digit profits in Nike Inc. (NYSE:NKE), Fedex Corp. (NYSE:FDX), and The Priceline Group Inc. (NASDAQ:PCLN) to name just a few.

That’s why Money Calendar is one of my all-time favorite tools.

Now Money Calendar has shown us that The Priceline Group Inc. (NASDAQ:PCLN) again has the potential to deliver 100% gains over the next few weeks as we head into earnings season.


Let’s quickly review what Money Calendar does so you understand this trade opportunity from A to Z.

First, Money Calendar gives us an overview of market patterns on 250 stocks and ETFs, and displays them in a calendar format. For this week, overall market sentiment looks like this (which is why I’ve been predicting a bounce):


As you can see, the majority of this week is bullish. How does Money Calendar come up with the numbers above? Well, it crunches millions of data points calculating the average moves of those top 250 stocks and ETFs over the last decade.

Money Calendar provides the data and we use that to structure our options trades – if a stock made an average price move nine out of the last 10 years (or more), the likelihood it will do so again is very good.

Here’s what I see when I click into this week:

The chart above is just a small piece of what I see every day. PCLN rises to the top in average profits during this period, which is why it’s my trade for this week.

If you look closely, you’ll notice the pattern runs from now until November 14, 2015.

Now in a perfect world, this would be just fine, but as I told you, we’re coming up on earnings (for which Money Calendar does not account in all its data crunching). Given that earnings are due on November 3, we’re going to give ourselves the opportunity to exit early.

We already know the stock is incredibly likely to make a move to the upside over this timeframe – it’s done it nine out of the last 10 years.

The only thing left to determine is what kind of trade to take on PCLN. As you’ll see, that’s pretty easy to figure out.

How to Play PCLN Now

You might think it’s going to be too expensive to play a stock that’s trading around $1320.

But not with Money Calendar.


Today’s trade slashes the cost and risk of entering the position, allowing even a smaller trader to trade PCLN. Think about it a moment: How much does 100 shares of PCLN cost at $1320?

The answer… $132,000.

It’s crazy to think of putting that kind of capital to work for a 40-point move in the stock, or roughly a 2.5% gain.

And what if you’re wrong?

These are the questions a smart trader will ask before putting any money to work in the markets.

We’re going to target call options, but even calls on PCLN are expensive.

As of this writing, the PCLN November 6, 2015 1320 calls, which give the buyer the right to buy PCLN at 1320 a share, are trading for 58 points! That’s $5800 a contract, which is cheaper than the stock, but still much more than the $500 average risk I like to take with my Money Calendar trades.

So how do we get in the big game here with PCLN while risking less?

Easy: the “Loophole Trade.” More specifically, we’re looking for PCLN to make a bullish move, so we want to place a bullish loophole trade.

Remember, a bullish loophole trade involves buying-to-open lower strike call options while simultaneously selling-to-open higher strike call options with the same expiration for a spread price (it’s also known as a Vertical Call Spread or a Bull Call Spread).

For example, if we buy strike prices that are 10 points lower than we sell, we have created a 10-point spread. This is the most that the trade can be worth at expiration, so I want to get this for cheaper to increase our potential.

In most cases, I like to buy any spread for no more than 40% of its full value. In the case of PCLN, I am looking to buy the spread below for a just $4.

So here’s what to do…

Actions to Take:
Entry Date: October 13, 2015 (today)
BUY-to-Open: The Priceline Group Inc. (NASDAQ:PCLN) PCLN November 6, 2015 $1320 Call (PCLN151106C01320000) AND SELL-to-Open: The Priceline Group Inc. (NASDAQ:PCLN) PCLN November 6, 2015 $1330 Call (PCLN151106C01330000) to create a November 6, 2015 Vertical Call Spread for $4.00 or less.

Exit Date: November 4, 2015
Exit Strategy/Profit Taking Option:
SELL-to-Close: The Priceline Group Inc. (NASDAQ:PCLN) PCLN November 6, 2015 $1320 Call (PCLN151106C01320000) AND BUY-to-Close: The Priceline Group Inc. (NASDAQ:PCLN) PCLN November 6, 2015 $1330 Call (PCLN151106C01330000) for a 100% return.

Here’s your trading lesson summary:Here’s your trading lesson summary:It’s time to put your education to the test with a live, actionable case study. Here are a few things to keep in mind as you make this trade:

  1. When targeting an expensive stock, the “loophole trade” is a great way to slash your cost… and your risk.
  2. A bullish loophole trade involves buying-to-open lower strike call options while simultaneously selling-to-open higher strike call options with the same expiration for a spread price
  3. We’re targeting weekly options to give ourselves flexibility around earnings.

We’ll monitor PCLN over the month and see how this trade matures, so stay tuned!

Tom Gentile

America’s #1 Trader

61 Responses to “New Trade Instructions for My Next “Money Doubler””

  1. Trying to understand why recommending this trade at $4.00 when the active trading price is $6.60. It was that price yesterday and still is this morning when today’s recommendation was issued. Placed an order GTC but don’t expect to get filled.

  2. I consider myself reasonably competent with options trades but this just seems to confuse me a bit. I have placed, on thinkorswim, the following: “buy +2 vertical PCLN 100 (weeklys) NOV1 15 1320/1330 CALL @4.00 LMT GTC PHLX (TO OPEN/TO OPEN). If I correctly understand your instructions for this loophole spread, this should be correct. It has not yet filled.

  3. I’m interested in placing this loophole trade for less than $4. However today there’s a 5pt spread around your prescribed strike prices. Using single position call entries: buy 1320 and sell 1330, costs ~$9.70. Am I missing key insight? Would you still recommend this loophole trade if just a 5pt spread?

  4. Same comments about getting a fill at this price. Price was $6 when I got the alert and appears unlikely to get filled unless pcln crashes. If that happens, filling a bullish spread on a declining stock seems counter intuitive. Im still waiting to get filled on DE which was the same situation. (Higher trade price than limit price when alert was sent)

  5. my orders have not filled either, but that is not where my question goes … I am wondering the instructions for the ‘exit trade’ – do I enter that today as well and set it for Nov 4 to execute?
    Thank you,

  6. I must be missing something. You say execute PCLN at $4.00 or better but I show this spread at $6.70 which is big money. I have the same issue with “JBL” and “DE”. Please let me know what I am missing.



  7. never traded like this before and am totally lost. I have e trade Roth account . do I type in exactly as you have it written? what category would the trade be placed under. or would I be best doing nothing because of my lack of knowledge about this type of trade?

  8. Tom I am joining all having problems with recommended fill prices. It is hard to claim all the doubles and more if you suggest fill prices from the fairy land .Also few times on sale price filled was nowhere close to recommended Let’s come down to earth

  9. Seems like there are a lot of impatient people out there. Play the trade as Tom has set it and wait to get filled when the market comes off. If it doesn’t then let the trade pass like what happened with DE and FDX with me. Don’t let the market frustrate you. Tomorrow is another day.

  10. seems that these loophole trades are primarily what you’ve recommended the past month or so. My TradeKing account requires a margin account to do loophole trades, which i don’t have. Can you recommend more straight call and put trades, or is now not the right time for those?

  11. Unable to make trade. This is 2nd time this has occurred. Confusing tactics look good, however, if broker informs me I am unable to execute this plan, your service, for membership fee, is a futile attempt to increase my capital.

  12. PCLN Loop trade moved early. I ‘doctored’ the trade by raising the buy portion to $1325 instead of $1320 and had a spread of $4.20 or so. I know it’s more, but I’m watching it and believe in PCLN. Thanks

  13. PCLN and DE so far not filling yet what your recommending price, are you still open this position? or not? My question is what if market down and get filled and market keep going down past to breakeven price then are we losing money? or you have other secret twist recipe ?
    I feel very weird now

  14. How do you determine your target spreads? The target debit spread on this vertical is ambitious, optimistic or based on calculations that don’t reflect current conditions. Ditto the DE trade suggestion, which never filled.

  15. I thought you would exit the trade before earnings not the day after? if earnings are against us we may lose all profits gained, and if they are for us we may as well hold on for the ride and not exit on the 4th

  16. I’m having the same issue as everyone else, I was no where near the $4.00 actually closer to $9.67 and I set my order up about half an hour after getting tom’s email, not sure what to do but I did not place the trade.

  17. The ‘loophole’ trade is good trading strategy in theory. Unfortunately I can’t take advantage of it in my IRA trading account which is not a ‘margin’ type account. That’s because selling a call has theoretically unlimited upside risk, even though buying a nearby call in the same month would mitigate that risk (again, in theory). But my account trading rules don’t permit this type of trade. They do, however, permit me to buy or sell puts and buy calls. So if I were to buy the underlying stock, then sell a call (for a ‘covered call’) and also sell a put, that would be profitable, assuming the underlying stock continued to increase in value as the ‘money calendar’ predicted. But because of the limitations in my trading account I’m unable to get my money’s worth from Tom’s trading service. That’s where good theory clashes with reality.

  18. Dear Tom,
    I find loop trades great for money making, if you are an experienced trader, my option account does not let me trade loop holes, xspreads etc etc unless I give all my financial information to my broker which I’m not prepared to do for personal reasons, is there any other way to use your reccomented options trades?

    Warm regards

  19. Hi Tom,
    I tried this trade through TD Am phone app exactly as you recommended. However, a pop up saying; “error committing trade: strangle may not have identical options types.” prevented my trade from getting through. I hope you could help me on this. Thanks.

  20. I agree with Ben Powell : Spreads are often bigger than entry targets. And I am in Europe so I always get the advise BEFORE opening market, so I can be really on top of things. All trades are profitable at unrealistic low entries. what am I missing here ?

  21. Thanks for all the comments. This one did get away from us, even before this article was released. However I do like to keep my limit orders in for the week just to see if the price will “come back to me” in the event that we get a pullback which does tend to happen with a stock like PCLN. The wide bid/ask spread on these stock options, combined with the volatility in the markets is why I tightened up my limit price on this occasion.

    Also for those of you who are a bit lost on this type of strategy, read my recent article in the archives called “What is a Loophole Trade”. This is EXACTLY the type of strategy you want to implement on a stock such as PCLN.

    Stay tuned…

  22. Here are some more answers for those of you who asked questions to me… First let me point out that everything below is for educational purposes only, and I am neither anyones broker or individual investment advisor. That being said, lets learn some stuff!

    Robin, the reset seems to be due to the earnings call being shifted from 11/06 to 11/09. Due to that shift, the options will expire before earnings, making the IV drop substantially… no problem for us though., still waiting patiently.

    James, Rolando, Bruce, Gail, Gerard, Ben, Leah, Milton, Ron, Bruce – It’s a limit order, I don’t want to overpay for this spread. Think of this as going shopping for a corvette. Theres sticker price and theres what I want to pay for it. Your welcome to go in and pay sticker, but you wont like it. As I am looking at PCLN today it is down 25 points and the spread is nearing my limit of 4. I have seen this typical up and down in PCLN long enough to know theres opportunity for better than market. If I was filled at 6.5, I would be down over 50% today. Lets be smart PowerProfitTraders, the worst we can lose is opportunity.

    John, cant really comment on candlesticks, I am a time pattern and contrarian trader, but I do think adding your own analysis to my stuff doesn’t hurt.

    Ben, Celestine, Kenny – over the last few weeks we have exited FDX, PCLN (the earlier trade), NKE, and NE, most with profits of 50%-100%. DE and GG were not filled, and cancelled per my instructions. The only position we have open right now is GILD (profitable). Please check the Money Calendar members board and emails for updates to this premium service, thanks!

    Jesse – Great Question! I look at Money Calendar, and the average move during the pattern. I will also give a little more weighting to whats happened recently to get the target price, and ultimately the option strategy.

    Franz, check investor relations on Priceline… earnings report on Nov 7th, after the pattern is over.

    Jack – THAT IS EXACTLY WHAT YOU NEED TO BE DOING!!! I don’t do something until I understand it… It actually took me some time to grasp spreads, but the rewards are worth it once you do.

    Peter – your trade does not match at all what is shown in the article. We are using options that expire on November 6th. As for TOS, give them a call to double check what your trying to do is correct.

    Ronnie, Dan – I think it depends on the type of retirement account you trade, some only trade straight options, some allow spreads, none allow unlimited risk trades such as naked option sells. Shop around, though I am not a tax specialist, I believe there are choices out there for self directed IRAs.

    Edith, Ron, Jack, Fred, and EVERYONE ELSE – I have a few things for you to do. 1) Find and read my articles on this site for loophole trades, you will learn the fundamentals on this great strategy: 2) Paper trade them in a virtual account until you understand what happens to them in good and bad times, and 3) Understand that this is just ONE of several strategies that I teach right here…

    I am typically a call and put trader, but in talking to my Money Calendar Members (and don’t forget we have a live webinar on Thursday at 5pm EDT) we discussed the volatility in the markets, and the need to cut risk until it subsides. That means looking beyond just a call or put that’s overpriced and finding strategies that reduce the volatility risk in the markets.

    Thanks for all the great questions… I hope I answered them all! Stick with me and I guarantee you will learn a lot!


  23. Most IRA accounts won’t let you trade advanced options including vertical spreads. You must open a brokerage account. Being approved for Level 3 trading would really require your financial informations such as your liquidity. I feel safe with the limit recommendations by Tom. If you don’t get filled, better wait for the next trade.

  24. Tom,
    If I understand your trade instructions on the “Loophole Trade” a person must already hold shares of The Priceline Group Inc. before they can execute the second half of your entry instructions. Please let me know if I am wrong but “Sell-To-Open” is when an owner of a stock wants to sell an Options Contract on one hundred or more shares of the stock they own. Unless this is some sort of an “Uncovered Call”??
    I am new at this so I am only allowed by TD Ameritrade to trade options at level #2 for now until I get more experience under my belt so I wanted to ask you if at least half of your recommendations are regular Put and Call trade recommendations or something like that? I want so badly to become a “Money Calendar” subscriber but I want to first make sure I can participate in your recommendations.
    Between you and Keith I am learning so much so thank you both for all you do to help us beginners “learn how to fish” as they say.

  25. I looked at this trade a thousand times and each time I got the same result – it’s a complete wash – no profit no loss – Tom is a genius so I must be missing something here – he says to sell at exactly the same parameters at which we bought – did I understand that right?

    Would I buy a lamp for $100 with the plan to sell that same lamp for $100? What did I miss?

    And, it doesn’t help that your “money calendar” service is, for some inexplicable reason, unavailable to those of us who just joined. Ugh…

  26. I am not into loophole spreads for either put or call options. Would prefer trading straight puts and calls with the money calendar. Can you give more trades on calls or puts with the money calendar so we can trade those or even paper trade, to gain confidence. Thank you

  27. I find it interesting, no discouraging that you claim the trade was gotten into when the spread was never under $4.50. Who got in and how? Like others have commented, getting in as it goes down is counter productive.

  28. Hi everyone I know Tom since he worked w/G. Fontanellis( Optionetics)so is he still is now in this business , that means he knows something that you and me dont, so please be patient and learn from his experience and read a lot about options

  29. Tom, I am new in this business and only approved to trade not more than level two by my broker. Could you please give me calls and puts that fit my approval category until I get more experience? I believe there are others in the same boat with me. l am a money calendar subscriber. Thanks.

  30. Tom, I am new on this field and only approved to trade level 2 by my broker. Please give us simple puts and calls to get started. Hopefully as we move on, in the nearest future we will be able to go move into more advanced trades. I am a money calendar subscriber. Thanks.

  31. By broker will not authorize me to Sell-To-Open Call Options. This is apparently the highest level of Option trade authorization. I’m told the financial risk is too great. Can you explain this? Is there and alternate trade?

  32. People, the man is a wizard not GOD! He’s giving you the best possible advice based upon historical information, he cant control what the company does or doesn’t do! If the price was 6.60 and he recommends 4.00, then GTC and wait, thats the info, stick with the plan! If you take away anything from this side note, “Money comes to those who are patient”, so be patient, sit back, listen and watch your account grow! The race is to the methodical and patient, not the the swift and arrogant! Remember one of THE most important fables you were taught, in this case, “The tortoise and the hare”! Good luck

  33. Some more comments…

    Most of the trades I publish in the Money Calendar are simple calls or puts, but due to the high market volatility we have experienced in the past month, there was no choice but to combat risk with spreads. Last week, along with the PCLN trade, we offered up 2 additional trades that involved buying just a call, and just a put (one bullish and one bearish).

    I have an article coming out tomorrow as an update to PCLN and trading using limit orders that should answer most questions, about what happened with PCLN during the week last week, with both the stock, the options, and the limit orders. BTW keep in mind this is only 1 trade, though you may not have gotten filled on it, this should further confirm that the Money Calendar does indeed work.

    Finally, for Michael and others, we will be opening up another window of opportunity to get involved in the Money Calendar soon. We only take a limited number of subscribers at a time.


  34. could you give detail example on your trade sheet for the exit strategies to make sure I understand completely how to put the information in to close out the trade ahead of time….I get somewhat confused on the section of my input where I have to pick debit or credit and also sometimes confused on the amount to put for the debit or credit limit….thanks…dk

  35. Hi Folks,
    1. I set my GTC order for slightly more than the recommended… 4.25 as I just wasn’t sure it would drop in that far and I was ok with a smaller return. It did fill late the 2nd day and I set my limit close for 8 and was a happy camper this morning when that filled.

    2. Some trading platforms I have used with IRA accounts will only let you do spreads if the are bought in a single linked transaction… Even if I already owned the lower call it wouldn’t let me sell one but if I”bought” a vertical call spread it would go through (without being a margin account, but I can’t remember if I had to provide financial liquidity info for this or not)… Anyway, so call your broker and discuss what you can be allowed to do!

    3. Similar to Tom’s 3 DIA strategies, you can/could have traded a simple call at the lower (1320?) strike $3055 per contract at my fill price on the 14th and sold this morning at my closing fill price of $6795, you are just paying the volatility premium and have a LOT more skin in the trade (but it did make more $ quicker so…).

    Just encouraging you to keep learning, find your accounts abilities and your comfort/tolerance levels, and stick very close to the recommendations until you FULLY understand all the impact / potential a change can make.
    Take Care,

  36. Maureen McIntosh

    I have been reading the comments of those who are not able to do loophole or vertical trades as they are sometimes called. If you are using TD Ameritrade as I am, I recommend that you request that the level at which you are trading be raised to Level 3 and that way you will be able to do these spreads, including the butterfly, straddle, strangles, etc. I am a new trader, attending trading classes and also is getting recommendations from another company. I just started using Tom’s method and I am amazed at how good his market analyses are. I have already recovered most of my subscription. Thanks so much Tom..

Leave a Comment

View this page online: