May and June 2020 metrics highlighting average income per trade, average return on investment per trade and overall premium capture.
May and June 2020 metrics highlighting options win rate, types of trades utilized and the number of unique tickers used.
The vast majority of trades are put spreads and 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 with 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 option trades, managing winning option trades is displayed in blue and percent premium capture is shown on the y-axis. Losing contracts are shown in red via buy-to-close at a loss to avoid assignment.
Portfolio performance comparison post-COVID-19 market lows observed in late March. The performance data between an options-based portfolio and the S&P 500 over the three month period of April, May and June is overlaid.
Historical performance showing the durability of an options based strategy where an 82% 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.
Historical performance showing a block of 500 option trades from Q4 2018 through May of 2020 through both bear and bull market conditions. Specifically highlighting the COVID-19 impact during March/April of 2020. Managing winning option trades is displayed in blue and percent premium capture is shown on the y-axis. Assigned contracts are in red, assigned contracts that were ultimately sold at a profit are in green and buy-to-close at a loss to avoid assignment are marked with a purple X.