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Thursday, November 30, 2017

Volatility and Leveraged instruments to Lazily beat the markets (Part 3)

In the first part of this series we examined the viability of investing in triple leveraged SPX via UPRO. With the potential to triple the market's returns comes added risk (larger draw-downs) and hence the idea of using UPRO in only a portion of the account. A simple combination of one third of an account holding UPRO (basically attempting to match the markets returns on the whole) combined with another instrument with a historical upside bias such as Bonds (TLT) which, additionally offers hedging potential as it generally moves up in times of crises (UPRO going down) easily beat the market (18.17% annual return vs 13.37% SPY) since 2011.

In the second part of the series we looked at short volatility instruments, which unlike UPRO, tend to go up when the market is going sideways. Combinations of either XIV or ZIV with bonds easily beat the markets too, but it was a pretty volatile ride, especially for XIV, which I personally prefer to not be invested in.

Saturday, November 25, 2017

Weekend Portfolio Analysis (November 25, 2017)

This week's analysis has been published at LTOptions.com

Download Weekend Portfolio Analysis (2017-11-25).pdf

If the above link doesn't work for you, simply log in to LTOptions.com, navigate to the "Weekly Analysis" tab and download the document from there.

The Weekend Portfolio Analysis will be available on this site next week for historical reference.

All currently open positions can be seen on the Track Record page


Last Weekend Analysis now publicly available: Weekend Portfolio Analysis (November 18, 2017) 
Recent Trading Activity

- Initiated a small Dec29 RUT 1590/1600 Credit Call spread for 0.90 credit ($450) on Tuesday.

- Closed Dec29 RUT 1330/1320 Credit Put spreads for a small $225 gain on Tuesday. Initiated a 1420/1410 Credit Put spread ($335) credit. So, basically I just rolled the old Put spread up, locking some gains in the process. The Dec29 RUT position is now a balanced 1410/1420/1590/1600 Iron Condor. It is a small position made up of only 5 vertical spreads on each side. So, one quarter the usual size.

- Initiated the first position of 2018: a January SPX 2440/2450/2685/2690 Unbalanced Iron Condor. Four to one ratio of Puts to Call and a net credit of $1700.

- It was not possible to close the December SPX 2635/2640 Credit call spreads for the 0.30 debit I wanted to lock in a small winner and forget about it.

Wednesday, November 22, 2017

January 2018 SPX Unbalanced Iron Condor

Trade Details:

20 January SPX 2440/2450 Credit Put spreads  @0.65 Credit ($1300)
  5 January SPX 2685/2695 Credit Call spreads @0.80 Credit ($400)

Net Credit: $1,700
Days to Expiration:58

Tuesday, November 21, 2017

Volatility and Leveraged instruments to Lazily beat the markets (Part 2)

In the first part of this series we examined the viability of investing in triple leveraged SPX via UPRO. With the potential to triple the market's returns comes added risk (larger draw-downs) and hence the idea of using UPRO in only a portion of the account. A simple combination of one third of an account holding UPRO (basically attempting to match the markets returns on the whole) combined with another instrument with a historical upside bias such as Bonds (TLT) which, additionally offers hedging potential as it generally moves up in times of crises (UPRO going down) easily beat the market (18.17% annual return vs 13.37% SPY). It also did so while scoring a respectable 1.68 ratio of Average Annual Return to Standard Deviation of Returns (a simplified version of Sharpe).

Saturday, November 18, 2017

Weekend Portfolio Analysis (November 18, 2017)

This week's analysis has been published at LTOptions.com

Download Weekend Portfolio Analysis (2017-11-18).pdf

If the above link doesn't work for you, simply log in to LTOptions.com, navigate to the "Weekly Analysis" tab and download the document from there.

The Weekend Portfolio Analysis will be available on this site next week for historical reference.

All currently open positions can be seen on the Track Record page


Last Weekend Analysis now publicly available: Weekend Portfolio Analysis (November 12, 2017) 
Recent Trading Activity

- Initiated a RUT Dec29 1330/1320 Credit Put Spread position for $300 Credit on Wednesday. It was a very short lived oversold condition. I tweeted out the trade entry live as usual. You can follow me on Twitter through this link if you like.

- NOV SPX 2315/2325 Credit Put spread expired for max gains +$1,000.

- NOV SPX 2425/2420 Credit Put spread  expired for max gains +$250.

- NOV RUT 1380/1390/1580/1590 Unbalanced Iron Condor expired for max gains +$1,555

Wednesday, November 15, 2017

December29 RUT Bull Put spread

Trade details:

SELL 5 Dec29 RUT 1330/1320 Credit Put spread

Net Credit: 0.60 per spread ($300 total)
Days to expiration: 45

Sunday, November 12, 2017

Weekend Portfolio Analysis (November 12, 2017)

This week's analysis has been published at LTOptions.com

Download Weekend Portfolio Analysis (2017-11-12).pdf

If the above link doesn't work for you, simply log in to LTOptions.com, navigate to the "Weekly Analysis" tab and download the document from there.

The Weekend Portfolio Analysis will be available on this site next week for historical reference.

All currently open positions can be seen on the Track Record page


Last Weekend Analysis now publicly available: Weekend Portfolio Analysis (November 4, 2017) 
Recent Trading Activity

- No activity.

Friday, November 10, 2017

Volatility and Leveraged instruments to Lazily beat the markets (Part 1)

For a while now I've been studying leveraged instruments with the idea of finding simple ways to obtain better returns than the market, and to, of course, achieve it in a lazy way.

The easiest way is to obviously own a double leveraged S&P500 ETF such as SSO, which attempts to produce twice the daily return of the S&Ps. Even more aggressive is UPRO, which is triple leveraged.

If things go well and the index rallies, you will instantly have superior returns. Of course, during down days you will also get multiplied pain. No free lunches, as usual.

Saturday, November 4, 2017

Options Trading Monthly Digest (October, 2017)

Time to reflect Options trading results for the month of October. For the reasons explained here, the focus of these articles will now be the positions whose expiration date took place during the month (as opposed to positions that were closed throughout the month).

Hopefully these monthly updates will provide readers with confidence and serve as an authentic guide of what can be achieved with a realistic and sustainable approach to the business of Selling Options.

Weekend Portfolio Analysis (November 4, 2017)

This week's analysis has been published at LTOptions.com

Download Weekend Portfolio Analysis (2017-11-04).pdf

If the above link doesn't work for you, simply log in to LTOptions.com, navigate to the "Weekly Analysis" tab and download the document from there.

The Weekend Portfolio Analysis will be available on this site next week for historical reference.

All currently open positions can be seen on the Track Record page


Last Weekend Analysis now publicly available: Weekend Portfolio Analysis (October 28, 2017) 
Recent Trading Activity

- Initiated a December RUT Unbalanced Iron Condor on Thursday for a $1,600 credit.

Thursday, November 2, 2017

December RUT Unbalanced Iron Condor

Trade Details:

20 December RUT 1380/1370 Credit Put spreads  @0.57 Credit ($1140)
  5 December RUT 1570/1580 Credit Call spreads @0.92 Credit ($460)

Net Credit: $1,600
Days to Expiration: 43