We have just passed the January month expiry. The model portfolios and real money portfolios exceeded the indices.
My data strategy is simple. I utilize the Wall Street Winning system of options trading designed by Ron Groenke. I have been a student of Rons for over 10 years and his guidance and knowledge have been instrumental in helping me develop my style of trading.
His system is simple to use. Each day the WSW sends trade signals on the stock market and options markets. Using the four states (BUY, WAIT, HOLD and SELL) and also the option optimization formulas the system provides me with the best stock / option combination for the period I am looking to trade over (7 days, 14 days or 21 days).
Using this approach and applying it to some model portfolios the following results have materialized over the past month.
Portfolio Results
100K Portfolio - Up $19,410 since Jan 1
200K Portfolio - Up $46,652 since Jan 1
600K Portfolio - Up $42,761 since Jan 1
1MM Portfolio - Up $59,686 since Jan 1
One of the benefits of this method is the forward looking nature of options profits WHEN YOU SELL them. Based on this I have already placed trades that expire at intervals over the next 3 weeks allowing me to forecast the total premium I will earn. Now, with selling options, I cap certain gains to the upside and using various structures (that are not hard to learn which I teach) I can eliminate a large portion to the downside leaving me with the option premium to bank on a weekly or monthly basis.
Now there are ways to trade that always leave me with room on the upside and that’s the sweet spot.
Learning options is easy – you read a book, paper trade and you are off to the races. The biggest challenge is knowing which stock to apply which strategy and when. That’s a lot harder.
Portfolio Results
100K Portfolio - Up $19,410 since Jan 1
200K Portfolio - Up $46,652 since Jan 1
600K Portfolio - Up $42,761 since Jan 1
1MM Portfolio - Up $59,686 since Jan 1
In comparison, SPY up 2.80%, BND up 0.02%, HYG up 1.39%.
I know a lot of people would be sceptical of these results and thats totally normal. These results are not typical compared to the rubbish investments that are peddled day in and day out by so called "experts". I can say that while they are teaching you that 2% per year is great and you should be glad, they are basically trading, like I do, with your money and they (the banks) are earning these returns!
It took me many years to work this out and unfortunately some people are too stubborn to consider that this may be happening to them.
As a trading coach my job is to help you find your investment sweet spot and to identify the options trading approach that suits your temperament. And make you money.
To find out more about what i do and how i do itfeel free to contact me on email [email protected]
Good luck out there.