May 2020 - September 2023 options trading metrics over the course of ~475 trades. Highlighting average income per trade, average return on investment per trade and overall premium capture, specific for the options component of the portfolio. All trades are risk-defined while using the options trading software to identify these trades. All trades follow the 10 rules of option trading and target high IV rank environments.
May 2020 - September 2023 metrics over the course of ~475 trades highlighting options win rate, option trade types and the number of different tickers used across stocks and ETFs.
May 2020 - September 2023 Return on Investment (ROI) per option trade. All option trades are risk-defined via put spreads, call spreads and iron condors in order to leverage a minimal amount of capital to maximize returns. The ROI target per trade is 5-15% at a delta of ~0.15 or ~85% probability of winning the trade at expiration. Option trades are spread across a wide array of tickers (stocks and ETFs) to maximize sector diversity across uncorrelated stocks with high IV Rank while maximizing the number of trades.
Portfolio performance comparison between an options-based portfolio approach relative to the Nasdaq-100 and Dow Jones. The annual performance data from 2021 and 2022 is overlaid. These data demonstrate portfolio robustness, largely matching and outpacing the broader market returns throughout a bull market run (2021) and mitigating losses during a market downturn (2022). These results were achieved with substantially reduced portfolio risk and a much lower portfolio beta (measure of portfolio risk).
The options-based portfolio possesses extensive overlap with the Nasdaq-100 and the Dow Jones in terms of depth and breath of options and long-term stock positions. Notable long equity positions include Apple, Microsoft, Amazon, Nvidia, Alphabet, Meta Platforms, Costco, Adobe, Netflix, Qualcomm, Intel, AMD, Starbucks, PayPal, Johnson & Johnson, American Express, Visa, Boeing, Disney, United Health, Goldman Sachs, JP Morgan, Home Depot, Netflix, Accenture, FedEx, Nike and Invesco QQQ ETF. Thus, the comparator of choice is the Nasdaq-100 and Dow Jones to benchmark the growth/technology centric strategy of an options-based approach.
Sample trade type distribution over the first half of 2021 (January - June), consisting primarily of iron condors and put spreads and to a lesser extent, call spreads. Statistically insignificant (~5%) are diagonal put spreads and diagonal call spreads. This option trade type distribution is dynamic and the weighting changes as a function of time.
Stock Options Dad LLC
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