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OP Income Newsletter Jan 2013 +15.5%

Published on February 16, 2013

OP Income Newsletter Jan 2013 +15.5%

February 16, 2013

Except for a cautious mover from RUT on Friday, all other conditions as outlined here remains in tact. Markets have been going up and there hasn’t been a correction during the past 7 weeks. VIX is trading below the crisis levels (i.e. lowest tertile of the past decade).

For the OP Income Newsletter, Jan 2013 portfolios delivered +15.5% on maximum of 24% capital employed based upon OP Capital allocation principles in line with risk/reward. This excludes all the results from OPNExtra! Trades e.g. Es Mini (+100%, +40%), RUT OOM Butterfly (+40%), VIX Future (Multiple Trades), cliff trades and a loss on MOS earning trade. While OPNExtra! is good, allow me to make the distinction very clear; our key objective is income trading and aim for 5-7% returns per month via diversification, scalability and appropriate risk management. Think of OPN Extra! as additional sweetener.

(If you are not an OPNewsletter member , pls click here for a RISK FREE sign-up).

We are primarily trading VOLATILITY and NON-DIRECTIONAL income trading strategies. The key objective is to preserve capital while gradually building gains as oppose to trading in hopes-n-dreams and lose capital. Subscription are currently open and there is no wait listing fee. The objective is still the same as it was 60 months ago i.e. 5-7% monthly gains on invested capital. OP Income Newsletter is NOT a GET-RICH-QUICK-NEWSLETTER. As proven time and again, the market neutral and volatility strategies that we trade are scalable and diversified.

Here is a quick feedback from one of the OPN members, you may kindly read more here.

Exp- So far, the service has exceeded my expectations. I was a bit hesitant at first to sign up, mainly due to the price, with many competing services offered at this price level.

As I mentioned above, the service has exceeded my expectations as a result of excellent risk management. Other services I’ve used are very vague and do not use specific guidelines like OPN. The reminders to close trades, along with the recommended allocation for each trade is very helpful. So far, OPN has done an excellent job of taking edge when given, and limiting losses when trades do not go as planned.

So far, so good. Nicely done with OPN DEC 2012 Portfolio. I would highly recommend the service to friends, but only if they were trading a 25-30k portfolio, since I feel like 5-10k portfolio would not justify the cost of the service.

Improvement- For the most part, all is well, so keep up the good work! One thing I wouldn’t mind seeing more of are more frequent updates regarding general market conditions. I also wouldn’t mind seeing a more active discussion forum.

Chris Lee, NYC, USA

Just to reinforce, earning trades are covered under OPNExtra! which is FREE for the OPN members and is not available for others.

Value Delivered by OptionPundit Income Newsletter

I have opened OP’s market comment section to all the members including FREE, you may want to read it for thoughts on overall market conditions and outlook. If you are still not an OPNewsletter member, this probably will be one of the most interesting years to join. For those who may be interested in following me on Twitter, you can find @OptionPundit at Twitter.com/OptionPundit

Happy Trading, OP

2 Comments

  • Avatar Jesse says:

    Hello,

    I’ve been keeping up with your website and twitter posts for a couple months now and have a question before I consider joining…Your recent post about January performance says 15.5% on max of 24% capital employed. Does this mean you made 15.5% on the trades you closed but only 24% of your account was invested? In other words you made 3.7% on your whole account for the month?

    If this is the case I have hesitations about joining because even though your past performance is very good I have no way of actually breaking down the average performance on the capital I would want to commit.

    I appreciate your comments on this.

    • Avatar OptionPundit says:

      Hi There,

      Thank you for your comment and interest in OptionPundit Income Newsletter.

      Your understanding is correct. During the month of Jan we invested only 24% of capital and thus made 3.7% on the portfolio for that month. These results are excluding the bonus trades under OPNExtra! Teh objective is to achieve 5-7% on the invested capital.

      Let me explain more pls-
      I aim for investing anywhere between 60-80% of the capital every month and remaining capital is kept aside for adjustments or for special opportunities. If you were to look at past results, that capital allocation will be a fair assumption. There are months, however, when it is not prudent to be fully invested (e.g. Nov’08 etc). Jan’13 month (stared roughly mid dec’12) expiration was facing fiscal cliff situation in between and there were extreme possibilities in either direction, and hence we stayed light.

      If were to assume portfolio capital growth, I think the best way to look is at the orange line in this chart (https://www.optionpundit.net/op-newsletter) though it doesn’t show complete till date (I am working on getting this plugin fixed but it does provide a good representation).

      Should you have any other questions, pls feel free to write to me anytime.

      Best regards and profitable trading, OP

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