Index Option Trader - Performance
Below you will find a complete list of all of our trades to date and their performance figures. We have included every single trade ever advised by our service.
2007
- January 2007: 15.7%
- SPX Iron Condor - $1.60 Fill
- SPX Iron Condor - $1.60 Fill
- February 2007: 3.4%
- SPX Iron Condor - $0.40 Fill – Exited before expiration.
- SPX Iron Condor - $0.40 Fill – Exited before expiration.
- March 2007: 10.3%
- SPX Iron Condor - $1.10 Fill
- SPX Iron Condor - $1.10 Fill
- April 2007: 14.6%
- SPX Iron Condor - $1.50 Fill
- SPX Iron Condor - $1.50 Fill
- May 2007: 9.3%
- DJX Iron Condor - $1.00 Fill
- DJX Iron Condor - $1.00 Fill
- June 2007: 8.4%
- SPX Iron Condor - $0.90 Fill
- SPX Iron Condor - $0.90 Fill
- July 2007: 15.7%
- SPX Iron Condor - $1.60 Fill
- SPX Iron Condor - $1.60 Fill
- August 2007: 10.7%
- SPX Iron Condor - $1.10 Fill
- SPX Iron Condor - $1.10 Fill
- September 2007: 21.7%
- SPX Iron Condor - $2.20 Fill
- October 2007: 36.7%
- SPX Iron Condor - $1.35 Fill
- November 2007: -7.2%
- SPY Iron Condor - $0.35 Fill - Stopped out before expiration.
- December 2007:
14.65%
- IWM Iron Condor: 5.1% - $0.22 Fill - Exited before expiration.
- SPY Iron Condor: 24.2% - $0.30 Fill - Exited before expiration.
2008
- January 2008:
-29.0%
- IWM Iron Condor: -29.4% - $0.30 Fill - Stopped out before expiration.
- SPY Iron Condor: -28.7% - $0.40 Fill - Stopped out before expiration.
- February 2008:
14.85%
- IWM Iron Condor: 13.1% - $0.25 Fill - Exited before expiration.
- SPY Iron Condor: 16.6% - $0.32 Fill - Exited before expiration.
- March 2008:
-11.6%
- IWM Iron Condor: 15.6% - $0.27 Fill - Held through expiration.
- SPY Iron Condor: -27.2% - Stopped out before expiration.
- April 2008: 13.7%
- IWM Iron Condor: 13.7% - $0.25 Fill - Held through expiration.
- SPY Iron Condor: 13.7% - $0.25 Fill - Held through expiration.
All results monitored by Pro Options Profits.
Note: The % Return each month listed here is based on the total investment (Maximum Risk) for each trade or one Iron Condor position - made up of 4 options known as legs. The Fill Price divided by the Maximum Risk of the position = % Return. Index Options have a multiplier of 100, so a $1.60 Fill Price for instance equals a $160 Position.
These performance percentages are based on the return of the trade itself, not return on account (see below). Your individual return on account naturally depends on the size of your trading account.
Example: Fill Price: 1.35 x 100 = $135 | Maximum Risk of Position: 3.65 x 100 = $365
Return: $135/$365 = 36.98%
Note: Return percentages listed above do not include commission rates per execution. Please consider the cost of commissions as an Iron Condor consists of 4 contracts, or legs, per spread. Your commission rates may differ depending on your broker, account size, and trading volume.
There is risk of loss trading futures and options. Trade with risk capital only. Trading options may not be suitable for all investors. Past performance is not indicative of future results.
Most Recent Market & Trade Commentary:
January 2007 Trade Commentary - Jan 15, 2008
With the recent downturn in the market for yet another session, it's looking like the SPY is going to pierce the lower breakeven price at 137.59. According to our rules, we have a standing conditional order for the autotraded positions to close the position out at the market if the SPY price violates the breakeven price. From a statistical perspective, this price movement (without any reversion to the mean price) is a rare event to say the least, but will happen from time to time.
With disappointing Intel results, along with all of the other bearish news on the economic front, the indices dropped considerably after hours. The Asian session got off to a weak start, but has since drifted towards the upside. We will continue to monitor the futures overnight and into the morning for any signs up a correction to the upside. If selling pressure lasts into the pre-market hours, we could be looking at another weak open on the U.S. exchanges again.
The selling was extremely strong into the close today, which usually leads to somewhat of a upside corrective bounce the following day, but this isn't always the case. It looks as if the stage is set for further disappointing earnings reports from market moving companies. Recession or not, we are trending down, that much is certain. Whether or not we are entering a bona fide bear market remains to be seen.
Many subscribers have wrote in asking if an Iron Condor is appropriate for a bear market. Our answer is that an Iron Condor is a sufficient strategy for any market -- it's market volatility that makes for favorable or unfavorable Iron Condor setups. While we may receive higher initial credits in volatile markets, the chances of price violating either short strike is higher as well. As stated before, the market will compensate risk properly. Vertical spreads (option spreads that are profitable if the price of an index, or stock, stays below or above a strike price) are another strategy in which directional bias is taken into account. We may issue these directional style spreads as 'bonus' trades for those who would like to incorporate a directional bias. We will continue to primarily trade probability based Iron Condor setups through these volatile markets. Practicing proper money management and following the trade rules are absolutely paramount in times like this. As stated many times before, variation is part of trading and the ability to be disciplined will reward those in the long term.
-Eric, Head Trader
November 2007 Post Trade Commentary - Nov 12, 2007
Our November SPY Iron Condor was filled at a debit of $0.47 to flatten our position. This is a $0.12 loss from our original fill at $0.35, resulting in a loss of 7.2%. Given this extremely volatile market, we're glad to flatten out at a very small loss without increasing the risk of the position. The market continues to move in a sideways fashion, yielding very unpredictable price movements. We will continue to watch the market but stand by our exit according to our trading plan. We don't subscribe to the 'shoulda, woulda, coulda' philosophy, and we are ready to start planning our next trade. We will continue to practice our emotion-free, probability based approach to trading and will issue our next trade in the near future.
As this month marks our first realized loss, albeit small, it is important to see why we strongly advise proper money management. Also remember, our approach to the markets and trading is strictly based on probabilities and statistics. While winning trades are always great, realize that losses are a statistically guaranteed part of trading. It is our job to keep our losses small and our winners large, all while maintaining an emotionless state of mind - which can be very difficult for novice and experienced traders alike! Trying to hold on to a losing position and 'see if it will come back' is a very dangerous game to play. You may luck out a few times, but this reinforces bad habits and will definitely come back to bite you in the long run. Imagine taking the maximum loss… Not a pretty picture by any means! The market is always right, remember that. For those of you trading equities, futures, and other index products, please keep in mind that today's action is on very light volume. Be sure to pay attention as this bullish action may be falsely optimistic in the midst of the credit / subprime / write-off themes of late. While a slight rebound may materialize, the larger macro themes still prevail in the markets.
- Eric, Head Trader
October 2007 Trade Commentary - Oct 11, 2007
Just as I was writing this commentary for the October SPX and SPY trade, the news came across my wire that European Central Bank governing council member Axel Weber said the bank may need to raise interest rates to a level that restricts economic growth to keep inflation under control. As the news was coming across, I was writing about how the SPX was breaking out to the upside above its previous swing highs at the 1556 levels. This technical move known as a breakout, signaled that the SPX (and SPY) were, in effect, heading higher. When planning our spread for this month, we took into account the markets neutral to bullish sentiment and expected the SPX index price to move sideways to up around the 1570 to possibly the 1580 level by expiration, if bullish attitudes remained intact. We also took into account the fact that earning season was going to kick off about a week outside of expiration and if the Dow components put in solid Q3 numbers, we would be in for a move to the upside. Also weighing on the markets is the fleeting fact that another rate cut on Oct. 31 is going to happen. Overall, our October trade remains intact with the SPX at 1554.41, right near the middle of our range, which is excellent. Today's market sell off could be seen as a gross market overreaction, but only the markets will tell the story.
- Eric, Head Trader
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