OPNewsletter: Outperformance (Jul +32.75%)

(for details pls visit www.OptionPundit.net)

What a roller coaster week. First both Dow and S&P500 created a record and then loses the ground. Huge movements in either direction. Google lost, but ISRG surge to new highs. IBM gained, CAT lost. A week full of wonderful events. 

market-movement-for-wk-of-jul-16.png Dow closed lower -0.7%, Nasdaq also almost same range, S&P500 lost about -1.25% and RUT lost about -2.0%. OP’s July portfolio on contrary gained +5% when compared to negative returns of all the major markets, again outperformance. (This exclude gains from APPL experiment, GOOG and IBM earning plays and ISRG intraday play)

This was also a personal record week for me for following reasons:

  1. I have doubled the capital in less than 6months time. Based on monthly compounding that is closed to 12% per month (vs my target of 5-7%).
  2. For OPNewsletter, so far win ratio is 100%. All the mini-portfolios have been positive since inception.
  3. This was my 11th consecutive month of successful Iron Condor on RUT

Here is how July’07 portfolio fared on close of Jul expiration:

  1. OIH: +43.6%
  2. RUT: +17.79%
  3. MRO: +3.1%
  4. GOOG: +27.8% (This doesn’t include earning play)
  5. RIMM:+26.34%

Total OPN Portfolio returns : +32.75%

As you may notice in OPN my approach is a mini-portfolio approach vs using a single iron condor or credit spread. I don’t think I will ever invest my 100% capital into one strategy and one underlying. This diversification in sectors (Tech, Oil, Index) as well as strategy (Condors, Calendars, etc) provided me cushion (when one is down, other one is up). I also had some bold perspectives contrary to popular belief which also proved in-line (Google, Oil).

Even though, all this is great, I would like to leave with one reminder. Past performance in no guarantee of future performance. Every-week is a new week starting from past week and one needs to look forward weather or not his/her plans are good enough.

I am lovin it.

Cheers and have fun, profitable trading, OP






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