May, June, July, August and September 2020 metrics highlighting average income per trade, average return on investment per trade and overall premium capture.
May, June, July, August and September 2020 metrics highlighting options win rate, types of trades utilized and the number of unique tickers used.
The vast majority of trades are custom put spreads that are closely related to diagonal put spreads in order to define risk while leveraging a minimal amount of capital in order to maximize return on investment (ROI). For any given trade I target roughly 5-15% ROI at a delta of ~0.15 or ~85% probability of winning the trade at expiration. I always strive to trade across a wide array of tickers to maximize sector diversity and across uncorrelated tickers while maximizing the number of trades.
May, June, July, August and September option trades highlighting premium capture outcomes per trade. Managing winners is key for long-term options trading success. The number of trades is displayed on the x-axis and percent premium capture is shown on the y-axis. Winning trade are displayed in blue and losing trades are shown in red.
May, June and July option trades highlighting average ROI per trade, win rate and total number of trades. For May, June, July and August the average ROI per trade was 7.6%, 7.2%, 8.1% and 6.7%, respectively. Over this same period, a 100% options win rate was achieved over a total of 99 trades.
Portfolio performance comparison between a blended options-based approach and the S&P 500 post-COVID-19 market lows observed in late March. The performance data over a five (5) month period of April, May, June, July and August is overlaid. These data demonstrate consistent portfolio appreciation, matching the broader market returns in a raging bull market with substantially less portfolio risk.
Historical performance showing the durability of an options based strategy where an 84% probability of success rate is achieved (despite the COVID-19 impact) while leveraging ~80 different ticker symbols to maximize sector diversity and performance with uncorrelated tickers.