OptionPundit

Category: OP Newsletter

  • Outperformance Continues at OPNewsletter

    When compared with broader markets, Feb was an excellent month for OPNewsletter coupled with a few good learnings (kinda reinforcement, been there done that, but forget that). Overall, OPNewsletter for Feb closed up +5.6% x-commissions and +2.6% including commissions. Capital preservtion and thus allocation was higher priority vs missing an opportunity.

    These results doesn’t include the speculative directional trade which were shared here (only OPN subscribers can see this thread) and here at my profile on InvesCafe (Free) which includes likes of RIMM +40%, V +7.8%, BIDU +5.2%, BAC +10% to +40%, ESI + 33%, SRS, STT, WHR, BTU, AXP, CAT, ISRG, BLK and many more. I opened multiple positions where some won some lost (due to inability to fill on time as I was away and didn’t want to autotrade). Hardly any of those missed the expectations except the VXX which I intentionally closed.

    Above all, this doesn’t include future opportunities via capital preservation due to early warnings. Hope you have been reading OptionPundit and thus were aware of the Bear Market Signal that was reconfirmed recently. And of course, at least one assett class probably would have been shining in your diversified portfolio.

    I have already started investing for March’09 portfolios. if you would to sign-up, pls click here.

    Cheers and profitable trading, OP

  • Outperformance : OPNewsletter Feb’09 +5.85%(Open)

    An excellent month for OPNewsletter so far. Overall, OPNewsletter is up +8.87% x-commissions and +5.85% including commissions. We didn’t have to make any major adjustments to our portfolios except one which rolled partially to next month. We closed one portfolio for +17.17% gains and except any major disastrous events on Tuesday market open, remainder portfolios stands to gain good theta decay over the long weekend. This is what OPN wants, portfolios to be as boring as possible. We didn’t get fills on two income portfolios else results would have been even stronger.

    These results doesn’t include the speculative directional trade which were shared here (only OPN subscribers can see this thread) and here at my profile on InvesCafe (Free) which includes likes of RIMM +40%, V +7.8%, BIDU +5.2%, BAC +10% to +40%, ESI + 33%, SRS, STT, WHR, BTU, AXP, CAT, ISRG, BLK and many more. I opened multiple positions where some won some lost (due to inability to fill ontime as I was away and didn’t want to autotrade). Hardly any of those missed the expectations except the VXX which I intentionally closed.

    Other highlights includes my warning on Friday when markets were going higher in anticipation of stimulus package which proved right. Not that I have crystal ball, but it’s an experience I have been observing in the events of past few years.

    Overall an excellent month except that we didn’t invest a lot of capital for income spreads (only a max of 26.5%), but as I mentioned earlier, capital preservation is higher importance than missing a potential opportunity, especially in markets like current ones. We may always make more money if we have trading capital preserved. Once trading capital is lost, we can’t benefit from any opportunity even if it is as sure as that sunrise.

    I shall be looking for March’09 portfolios. if you would to sign-up, pls click here.

    Cheers and profitable trading, OP

  • OPNewsletter (Feb’09) : +2.78% (X-commissions) and +0.1% (/w Comissions)

    Such is the bear market, it leaves no one. Those who thought that major price indexes had successfully tested the Nov’08 market lows and that move December onwards marked a new primary bull market, were taken by surprise and Jan closed on a negative note. Dow closing almost 9% down for the month and other indices almost in the same range. I have been saying this since Nov’07 and will repeat here again “In bear markets the winner is the one who loses the least” (it’s not my quote, I borrowed it from the net and don’t know who said this, but whoever did concluded it at best)..so stay very close. I also mentioned about the importance of 7,500 break for Dow that if that’s gone, just stay clear.

    Here we are, our OPNewsletter portfolio are at break even after commissions in its 1st week of opening in spite of a weak market. Saying it another way- +2.78% excluding commissions and +0.1% after commissions.This doesn’t include bonus trades like CAT and ISRG which I shared via real-time alert on InvesCafe, and entry/exit on OPN forum. I closed CAT directional trade for +25.5% and ISRG for +46.6%.

    We have invested 24.27% of capital. This is also a month I didn’t open a RUT iron condor as risk/reward wasn’t good.

    Trade carefully, trade profitably, OP

  • OPNewsletter (Jan’09) +8.17% x-commissions

    This was another positive month for the OPNewsletter Income portfolio. On the invested capital, OPN delivered a total +8.17% excluding brokerage commissions and +5.39% including commissions.

    As part of on-going pre-caution, OPN’s Jan portfolio consisted of 3 income portfolios and all 3 were positive. Highlight of the results was Iron Condor Income portfolio that delivered +14.2% gains and was another successive winning streak. In spite of extreme unfavorable conditions in 2008, not even a single OPN RUT Iron Condor lost money last year.

    I am about to open the Feb’09 income portfolios, should you be interested in joining, pls find what is OPNewsletter here.

    Profitable Trading, OP

  • OPNewsletter Jan’09 : +4.06%, Feb’09 (Opening Soon)

    OP Newsletter Jan’09 Income portfolios grew to +6.84% excluding brokerage commissions. However, including commissions; overall OPN grew by +4.06%. Our Jan’09 Income Iron Condor is closed for +14.27%. Just for perspective, not even a single OPN RUT Iron condor lost money in 2008. For Jan’09 portfolios, OPN used up maximum of 34.14% of overall assumed portfolio capital and after profit booking OPN has >80% cash available for investing into other opportunities.

    These results doesn’t include returns from bonus trade alerts (for instance, shorting treasury pick is up > +10% since my last post).

    We shall start wrapping up Jan’09 income portfolio this week and start opening Feb portfolio soon. If you were waiting on sidelines to join OPNewsletter, this maybe the right time to sign-up as we shall be opening new portfolios.

    Profitable Trading, OP

  • OPNewsletter Portfolio up +37.5% in 2008

    Year 2008 was almost equally as good a year for OPNewsletter as 2007 especially when compared with any major benchmark index like S&P 500. In 11 months completion, from Feb’08 till Dec’08, OPNewsletter outperformed S&P500 by a wide app 70% margin.

    OPNewsletter Performance 2008

    During the year when the DJIA decline 33.84%, while the S&P 500 trimmed 38.49%, the NASDAQ lost 40.54% and Russell 2000 lost over 35%, OPNewsletter went up by +48.2% excluding brokerage commissions and +37.5% including retail brokerage commissions (my commissions are even lower than commissions I am assuming in the calculations). If however, I calculate the way usually option trading newsletter calculates (returns/amount invested), then OPN returns are +144% but we know, we don’t invest money that way. What really matters is the gain on overall capital.

    These results does NOT even include returns from bonus trades (earning play, momentum plays, almost risk free trades, swing trades, intra-day plays, etc.) where the success hit rate was over 80% (I didn’t spend time in counting too many bonus trades for past 11months, it is based on just the snapshot on the forum alone) and gains far outperforming losses.

    Here is a snapshot of the returns, portfolio capital invested and thus effective returns and compounding effect of OPNewsletter results.

    Except for the month of Aug’08, OPNewsletter has been positive every month. If you notice, very little capital was invested in the month of Oct’08 (expiration) and that was the month that most traders and investors alike want to forget. I warned OPNewsletter subscribers about the upcoming severity of the bears and we were on sidelines watching the show. We have been investing cautiously since then and only increased capital now for Jan’09 portfolios, that too only 30% so far. The maximum portfolio capital used was 84.3% for the May’08 expiration round.

    During this period, we opened several type of income spread including Iron Condors, Diagonal spread, Double diagonals, calendars, double calendars, credit spread, debit spreads, covered calls, Straight calls and puts and even purchased stocks where buying options was not making good sense.

    There are a lot of learnings that together with subscribers we have learned in the past year and things improves, we should be able to capitalize on those.

    Pls click here to read what do OPN subscriber think and browse OPNewsletter should you choose to join the OPN community.

    Going ahead looking for 3rd consecutive year of out-performance.

    Profitable Trading, OP