RESULTS

February 2017

Date                  Stock           Open Price  Strike Spread        Close Price    Result

2/4/2017 URI  $        128.77 131/132 BCCS  $        128.65 Profit
2/10/2017 NSC  $        120.18 124/125 BBCS  $        121.12 Profit
2/17/2017 SWKS  $          92.63 95.5/96.5 BCCS  $          96.35 Breakeven thru maintanence
2/21/2017 SWKS  $          96.57 97/98  $          94.70 Profit

 

 

 

January 2017

Date Stock Open Price Strike Spread Close Price Result
1/3/2017 WFC $55.52 56/57  BCCS $55.04 Profit
1/9/2017 SLB $85.86 86.5/87.5 BCCS $84.82 Profit
1/20/2017 WDC $71.52 71/70 BPCS $72.63 Profit
1/23/2017 MAR $84.13 84/83  BPCS $86.08 Profit

Year-end Summary, 2016.

I started this test in February of 2016.  The parameters of the test were:

  1. No real money was used. These were strictly paper trades.
  2. All trades were opened the first trading day of the week and ending on the last.
  3. All trades were made using options that trade weekly.
  4. If my search indicated a high probability of upward momentum, a Bull Put Credit spread was initiated.
  5. If my search indicated a high probability of downward or sideways movement, a Bear Call Credit Spread was initiated.
  6. All positions had spreads of $1 strike prices.
  7. All positions were for 5000 shares. Brokerage requires $1 per share to initiate the position, thus $5000 was required for the trade.  This is also the maximum that could be lost on the trade.
  8. All trades were assumed to have an initial credit of $0.30 leaving a maximum risk exposure of $0.70. Winning trades profited $1500 and losing trades were (sold strike price minus closing stock price, times 5000, up to $3500).
  9. When a trade goes against me, there are recovery methods that can be applied to minimize the loss. I did no maintenance or recovery on any of the trades in this experiment
  10. No Commissions were figured into the results.

During the 48 weeks from February 1, 2016 to January 1, 2017, there were 39 winning trades, 6 losing trades and 3 weeks when my search produced no prospects.

Although only $5000 is required to be held by the brokerage company to do these trades, I recommend a cushion just in case the first one or two trades go against what I anticipate.  I don’t want to be knocked out of the opportunity by not having backup in place.

When I say opportunity, I hope it is apparent that is what this is.

 

2/1/2017  $      0.30 5000  $     1,500.00
2/8/2017  $      0.30 5000  $     1,500.00
2/16/2017  $      0.30 5000  $     1,500.00
2/22/2017  $      0.30 5000  $     1,500.00
2/1/2029  $      0.30 5000  $     1,500.00
3/7/2017  $      0.30 5000  $     1,500.00
3/14/2017  $      0.30 5000  $     1,500.00
3/21/2017  $      0.30 5000  $     1,500.00
3/28/2017  $      0.30 5000  $     1,500.00
4/4/2017  $    (0.51) 5000  $    (2,550.00)
4/11/2017  $      0.30 5000  $     1,500.00
4/18/2017  $      0.30 5000  $     1,500.00
4/25/2017  $      0.30 5000  $     1,500.00
5/2/2017  $      0.30 5000  $     1,500.00
5/16/2017  $      0.30 5000  $     1,500.00
5/23/2017  $      0.30 5000  $     1,500.00
5/31/2017  $      0.30 5000  $     1,500.00
6/6/2017  $      0.30 5000  $     1,500.00
6/13/2017  $      0.30 5000  $     1,500.00
6/20/2017  $    (0.48) 5000  $    (2,400.00)
6/27/2017  n/a  n/a  n/a
7/5/2017  $      0.30 5000  $     1,500.00
7/11/2017  $      0.30 5000  $     1,500.00
7/18/2017  $      0.30 5000  $     1,500.00
7/25/2017  $      0.30 5000  $     1,500.00
8/1/2017  $      0.30 5000  $     1,500.00
8/8/2017  $      0.30 5000  $     1,500.00
8/15/2017  $      0.30 5000  $     1,500.00
8/22/2017  n/a  n/a  n/a
8/29/2017  $      0.30 5000  $     1,500.00
9/6/2017  $      0.30 5000  $     1,500.00
9/12/2017  $      0.30 5000  $     1,500.00
9/19/2017  $      0.30 5000  $     1,500.00
9/26/2017  $      0.30 5000  $     1,500.00
1/3/2017  $    (0.70) 5000  $    (3,500.00)
10/10/2017  $    (0.70) 5000  $    (3,500.00)
10/17/2017  $      0.30 5000  $     1,500.00
10/18/2017  $    (0.70) 5000  $    (3,500.00)
10/24/2017  $      0.30 5000  $     1,500.00
11/1/2017  $    (0.70) 5000  $    (3,500.00)
11/7/2017  n/a  n/a  n/a
11/13/2017  $      0.30 5000  $     1,500.00
11/21/2017  $      0.30 5000  $     1,500.00
11/28/2017  $      0.30 5000  $     1,500.00
12/5/2017  $      0.30 5000  $     1,500.00
12/12/2017  $      0.30 5000  $     1,500.00
12/19/2017  $      0.30 5000  $     1,500.00
12/26/2017  $      0.30 5000  $     1,500.00
 $   39,550.00

 

December 2016

Date;   Stock; Open Price; Strike spread; Close Price; Result

12/5      GLD     $111.54        114/113              $110.40      Profit

12/12     CVX     $117.15        118/119             $118.08      Profit

12/19     ACN     $124.00      126/127            $117.48      Profit

12/26     PSX      $87.21         88.5/89.5        $86.41       Profit

November 2016

Date;   Stock; Open Price; Strike spread; Close Price; Result

11/1;    NFLX     $124.95       124.5/123.5   $122.03         Loss

11/7;       N/A

11/13:    APA     $58.60         58/57               $62.08          Profit

11/21     QQQ       118.29    120/121; 116/115   $118.80     Profit

11/28     QQQ      118.78     120/121                    $115.70    Profit

 

October 2016

Date;   Stock; Open Price; Strike spread; Close Price; Result

10/3;    NVDA     $68.82         68.5/67.5        $66.85       Loss

10/10;  HES         $ 53.95        53/52                $51.70       Loss

10/17;   NEM        $ 35.03       34.5/33.5          $36.17      Profit

10/18;   TSN          $71.56         71/70                  $69.54     Loss

10/24;   APA           $61.58       60.5/59.5           $60.72    Profit

September 2016

Date;     Stock; Open Price; Strike spread; Close Price; Result

9/6/16    NVDA    $59.52         59/58              $64.30       Profit

9/12/16    MNK     $75.46          75/74              $76.12       Profit

9/19/16     NVDA    $63.67         63/62             $64.95      Profit

9/26/16       STX      $37.21         37/36             $38.55      Profit

August 2016

Date;     Stock; Open Price; Strike spread; Close Price; Result

8/1/16     X          $26.57         26/25            $26.15         Profit

8/8/16   CRUS   $50.91          50/49            $51.18         Profit

8/15/16  CRUS    $51.89           51/50            $52.15       Profit

8/22/16  CRUS    $52.12           52/51             $51.33      Loss

8/29/16   CRUS    $51.19           51/50             $52.15     Profit

July 2016

Date;     Stock; Open Price; Strike spread; Close Price; Result

7/5/16   TASR     $25.10          25/24            $27.30     Profit

7/11/16   NVDA    $52/02        52/51             $52.70     Profit

7/18/16   SLW       $26.39         26/25            $26.16     Profit

7/25/16    JOY       $27.83          27/26            $27.62    Profit

June 2016

Date;     Stock; Open Price; Strike spread; Close Price; Result

6/6/16    OKE     $45.10          45/44           $45.19         Profit

6/13/16   OKE     $44.98          44/43           $45.57        Profit

6/20/16    ZG       $35.04           35/34            $34.52      Loss

6/27/16     N/A

May 2016

Date;     Stock; Open Price; Strike spread; Close Price; Result

5/2/16    NEM    $34.34           34/33              $34.13         Profit

5/9/16       T         $38.86          38/37              $39.15          Profit

5/16/16     MAT    $30.94          30/29             $30.55         Profit

5/23/16      APA    $57.60           57/56             $58.29         Profit

5/31/16       EDP     $27.76          27/26             $28.31         Profit

April 2016

Date;     Stock; Open Price; Strike spread; Close Price; Result

4/4/16     CRUS     $36.80       36/35            $35.49          Loss

4/11/16     GDXJ    $32.43        32/31              $32.48        Profit

4/18/16    NEM      $29.46        29/28             $31.23          Profit

4/25/16     ANF       $28.23         28/27            $26.73         Profit

MARCH 2016

Date;     Stock; Open Price; Strike spread; Close Price; Result

3/7/16    TSN       $65.69         65/64              $67.69       Profit

3/14/16   TSN      $67.22          67/66              $67.18        Profit

3/21/16    TSN      $66.76          66/65             $66.89       Profit

3/28/16     GE       $31.49          31/30              $31.93        Profit

FEBRUARY 2016

Date;     Stock; Open Price; Strike spread; Close Price; Result

2/1/16   TSN       $54.31           54/54            $57.10         Profit

2/8/16   TSN       $60/26         60/59            $60.17         Profit

2/16/16  CREE    $30.62           30/29           $30.30        Profit

2/22/16   TSN      $64.10           64/63            $65.17         Profit

2/29/16   TSN       $64.75           64/63            $64/96       Profit