The best way to beat the market is by strategically trading options. Options allow us to achieve a high probability of success on our trades which, in turn, gives us a very high amount of consistency. With options, we’re able to take predicting future market direction out of the equation as much as possible. Much like a casino, we use the numbers and math to our advantage rather than trying to predict the next card.
To reduce and manage portfolio risk, we take a top-down approach by looking at our entire portfolio as a whole and weighting it to a single index. This allows us to actively adjust our portfolio to keep our risk in check.
Overall Total Win Rate Since 2014
A high win rate is crucial to achieving consistent results. Our high win rate can be attributed to the option strategies we use, as well as our method of managing those trades.
Overall Total Win Rate
Total Trade Metrics since January of 2016.
This is the total number of closed trades.
This is the total number of winning trades.
This is the total number of losing trades.
Total Trades by Strategy Type
- Iron Condors 51%
- Strangles 29%
- Verticals 10%
- Single Option 7%
- Back Ratio 2%
- Butterfly 1%
Profit and Loss Metrics
Average Profit Per Contract
On average, each winning trade we close has a profit of $72 per contract.
Average Loss Per Contract
On average, each losing trade we close shows a loss of $234 per contract.
Average Days held
On average, we hold each trade for 27 days.
On average, each trade returns us a 15% on our investment.
With high probability option strategies, it is common for the average loss to be larger than the average profit. This is not a problem as long as you have a high enough win rate that ensures the losses are few and far between. Constantly booking small winners and rarely ever losing is where the real home run is hit.