OPNewsletter Aug 2012 +13.45%, OPNExtra! +33.6%
Published on August 4, 2012
Published on August 4, 2012
OP Income Newsletter August portfolios delivered a solid +13.45% excluding gains from OPNExtra! (+33.68%) which is a FREE feature for OPN members that includes directional as well as earning trades. For Earnings special, there were a total of 17 closed trades of which 88% are winner (15 trades). Each of the 7 mini-portfolios of OPNewsletter posted positive gains ranging from 6.6% to 80%. Also as an OP blog reader, I hope you enjoyed my earning previews on GOOG, AAPL and LNKD. Should you have any suggestions, pls post your comments on how to improve those.
Assuming someone invested suggested allocation (can be seen on right sidebar), returns from OPNExtra (Earnings only) would be +33.68%; However, if you use a model of $1,000 per trade, then returns will be +94% in last few weeks alone. If you consider 10% of portfolio capital dedicated to earning, then gains will be a whopping +136.8%. But as a prudent capital manager of my portfolio, I will be adhering to prudent capital allocation structure and thus gains will be only +33.68%. This doesn’t include AMZN post earning play as most members weren’t able to place orders.
OPNExtra! VIX Futures +19.7% . Here are the results from other OPNExtra! (Stocks Only) (Trade details– For Member’s only)
Directional Winners (Stocks):
TXI +$4.0 points, TSCO +$3.2 points, EQT+$1.74, MPC +$1.09, RAX booked for approximately +$1.00 point, MCK +$0.68, FB +$0.70 points, UTHR +$0.6, COST +$0.47, BUD +$0.28, RTN +$0.31;
Directional Losers (Stocks):
FMX -$0.32, MKC -$0.1, SHOO -$0.14 points, and stopped out at PAY for -$0.98 loss.
Stocks gainls/loss are based on the price action from the trade trigger proint and are in terms of stock’s gains or loss; were options traded on these positions, the gains and losses would have been magnified. For instance – TSCO ATM/OTM option would have doubled during the day from the trigger point.
So as to make the distinction very clear, OptionPundit’s key objective is income trading and deliver 5-7% returns per month via diversification, scalability and appropriate risk management (How large is OPN portfolio). Most of the portfolio capital is allocated to income option trading strategies focusing on options’ greeks vs taking a directional view. (For example- Iron Condor Spread, Calendar Spread, Diagonal spread, Credit and debit spreads, etc). Objective is to have good night’s sleep while use some capital via OPNExtra! to accelerate returns. But since not every one at OptionPundit likes to trade earnings/direction, I don’t count OPNEXtra performance in OPNewseltter’s performance calculation. These trades’s are suited to more active traders who can trade almost everyday.
All of the above trades (excluding stocks) can be done with a US$10,000 portfolio.
If we were to look at the true performance for OPNewsletters’ value to its members, then it will be a P&L = 1) OPN+ 2) OPNExtra! (Earnings)+3) OPNExtra! (Everything else, e.g. VIX futures, momentum play, swing trades, etc).
We have great time ahead, volatilities are low, earning season is in full swing and OPN Extra is warming up with other trade systems/set-ups. So if you are still on sidelines and have missed past several weeks’ action, sign-up for OPNewsletter now. There is no waiting list currently and OPIncome Newsletter subscription is open to all.
OPNewsletters’ value to its members-
P&L = 1) OP Income Newsletter+ 2) OPNExtra! (Earnings)+3) OPNExtra! (Everything else, e.g. VIX futures, momentum play, swing trades, etc).
Starting around Aug 8th, we have interesting times ahead. Trade, but trade carefully with a properly structured trading plan and discipline.
Profitable Trading, OP