OptionPundit

Tag: Option Tradnig Strategies

  • A Record Month OPN (Jun’09) up +14.7%

    June 2009 was a record month (2009) for OPNewsletter! Overall June’09 OPN is closed up +14.7% (x- brokerage commissions) and +12.1% (including commissions). We invested almost 60% of 10K assumed capital across various sectors and diversified strategies. All the portfolios were closed positively. Overall an excellent performance that was almost double the OPNewsletter objective of 5-7% per month.

    Here is an update by individual portfolio-

    • GDX was closed for +5.15%
    • UPS was closed for +8.9%
    • X was closed for +13.85%
    • RUT was closed for +23.08%
    • DIA was closed for +22.89%
    • IWM was closed for +26.07%

    This doesn’t include returns on speculative trades on POT, GDX and GMCR, MCO and AAPL (Pls read here on OP calculates it’s results)

    To Reinforce what I said last week, and I still believe in it-

    Believe it or not, market internals are deteriorating day by day and the surprising thing so far is that it is still holding very well. I have trimmed my personal stock holdings by almost half (as lot of those increased by almost 60-70% in a few weeks time). The only holdings where i still continue to hold (or rather increase on every pull back) is gold. But pls don’t follow it without full due diligence as gold trading is not for everyone.

    This time around, our strategy was slightly different vs. usual way of adjusting. We were short delta all throughout the month, expecting for a sharp correction which didn’t arrive but markets didn’t rally either and didn’t go beyond the expected upsides break-even. This was a well thought out technical as well as psychological analysis that helped determine what to expect and when to move. We were short delta and as soon as markets fell, our results improved.

    This was another record setting month for RUT Iron condor. Since re-opening OPNewsletter in Jan’09, OPN’s RUT Iron Condor never lost money and just one condor alone was more than enough to pay for the subscription.

    We have started to open Jul’09 income portfolios. If you would like to sign-up, pls click here to join waitlist.

    Profitable Trading, OP

  • OPNewsletter – May’09 (+9.48%), Jun’09 (Open)

    OPNewsletter closed May’09 for +9.48% x-commissions and +6.76% inclusive of commissions. As I stated earlier, after many months of waiting, we crossed our 60% portfolio investment target. It’s always an advantage if the capital was preserved. Yes we did have a few months of low returns, but that preserved capital is an out performance (vs general markets) already and now we can start using this preserved capital for further gains vs. wasting energy in recouping the losses. Just 1 single covered call (X) was more than enough to cover OPN fee  (and triggered no adjustment needs).

    Sign-up for the OPNWaitlist here.

    Maximum investment incurred was +64.4% (reached on April 23) and since then we continued to use that as basis for returns calculation even though we were generating credit since then for the next two weeks. Here is the tally-

    • IWM, USO and UPS were almost breakeven
    • USO was closed for +0.8% (after Mar @ >+22% and Apr@>+13%)
    • GDX closed for +18.38% in May
    • X closed for 23.29% gains
    • HAL was closed for +22.69%
    • AMZN was closed for +15.83% and
    • IBM was closed for +23.01%

    This doesn’t include bonus speculative trade on Visa earnings (V) that was closed for +35%, CSX , GS, GOOG and others some of which didn’t make much money or closed for breakeven. We have already opened our June’09 income portfolios and invested almost 35-38% of capital. After a few months gap, we opened a 160 points wide RUT Iron condor for $2.20 credit which is already making money in two days.

    If you would like to join OPNewsletter, pls sign-up for the waitlist here.

    Profitable Trading, OP