Sunday, July 21, 2013

18.23% Return Produced During July Option Expiration Cycle

As we move through the July monthly option expiration which will occur on July 19, 2013 at the close of business we can look back at the expiration cycle that was. The end of the June monthly option expiration nearly marked the recent market lows. Since the beginning of the July expiration cycle we have seen the S&P 500 Index charge higher.

The recent performance in the Options Trading Signals portfolio has charged higher as well. There were 4 trades that were closed during the July expiration cycle. The 4 trades that were closed had a total gross gain of $169 per spread. The total risk assumed in the 4 closed trades was $927. Thus, the four trades produced a gross return on maximum risk of 18.23%.

A trader that risked roughly $2,500 per spread would have had a gross gain of $1,951 for the month of July. The table below demonstrates the trades that were closed during this expiration cycle.

otsperf1

In full disclosure, there were three trades that were rolled forward as price action did not accommodate trade expectations. However, the overall results of the OTS Portfolio since the beginning of the June expiration cycle have been outstanding. The full trade performance is shown below based on actual trading results from the portfolio.

otsperf2

Since the beginning of the June monthly option expiration cycle, the Portfolio has closed 15 total trades. In that time frame only 1 trade has produced a loss and that trade essentially was breakeven overall. The total recent trading results speak for themselves.

Since inception, the OTS Portfolio has taken 171 trades publicly that have been opened and closed. Of the 171 trades executed, 125 trades have produced gains. This equates to over a 73% success rate for all trades that have been opened and closed for the OTS Portfolio since late 2010. It is not a coincidence that the typical probability of success that I focus on for the service is between 60% – 80% probability at the time of trade entry.

Overall, the OTS Portfolio continues to generate strong trading returns while providing members with an opportunity to look over a professional trader’s shoulder to watch how trades are evaluated and when they are taken and why.

The OTS portfolio strategy is focused on a mathematical approach to trading options that gives traders a probability based edge. No more red and green arrows, no more charts with 500 indicators, and no more confusion. The system used is simple and has proven that strong trading results are possible when simple discipline is applied.

If you are looking for a mathematical and statistical based approach to trading, Options Trading Signals service may be a perfect fit to improve your option trading results.  


Click here to give Options Trading Signals service a try today!





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