Happy New Year everyone! Wishing you and your families a lot of health, prosperity and happiness in 2015.
2014 marks our third year as a public service. We had an fantastic year. We closed 150 trades in 2014 which produced 146.6% ROI, based on fixed $1,000 allocation per trade (non-compounded) and 6 trades open. The winning ratio was pretty consistent around 63%. We had only one losing month in 2014. Check out the Performance page to see the full results. Please note that those results are based on real fills, not hypothetical performance.
It is important to mention that those numbers are pre-commissions, so your actual results will be lower. As with every trading system which uses multi leg trades, commissions will have a significant impact on performance, so it is very important to use a cheap broker. We have extensive discussions about brokers and commissions on the Forum (like this one) and help members to select the best broker. Commissions reduce the monthly returns by approximately 2-3% per month, depending on the broker. Please refer to Performance Dissected topic for more details.
August was our only losing month in 2014. Our biggest loser was 50%, and only nine trades have lost more than 20%.
SteadyOptions uses a mix of non-directional strategies: earnings plays, Iron Condors, Calendar spreads etc. The pre-earnings strategy is based on my Seeking Alpha articles 'Exploiting Earnings Associated Rising Volatility' and 'How To Rent Your Options For Free'. This strategy aims for consistent and steady gains with holding period of 2-7 days.
SO model portfolio is not designed for speculative trades although we might do some in the speculative forum. SO is not a get-rich-quick-without-efforts kind of newsletter. I'm a big fan of the "slow and steady" approach. I aim for many singles instead of few homeruns. My first goal is capital preservation instead of doubling your account. Think about the risk first. If you take care of the risk, the profits will come.
We continue expanding the scope of our trades beyond the earnings trades, Iron Condors and calendars. We are trading SPY, GLD, TLT, VIX and other ETFs to diversify the portfolio. We also started trading weekly trades to boost the returns. We will continue refining those strategies to get even better results. This gives members a lot of choice and flexibility.
Looking at specific strategies, pre-earnings calendars were big winners in 2014, producing 17% average return with over 80% winning ratio. We will continue trading what works the best and adapt to the market conditions.
What makes SO different?
First, we use a total portfolio approach for performance reporting. This approach reflects the growth of the entire account, not just what was at risk. We balance the portfolio in terms of options Greeks. SteadyOptions provides a complete portfolio solution. We trade a variety of non-directional strategies balancing each other. You can allocate 60-70% of your options account to our strategies and still sleep well at night.
Second, our performance is based on real fills. Each trade alert comes with screenshot of my broker fills. Many services base their performance on the "maximum profit potential" which is very misleading. Nobody can sell at the top and do it consistently. We put our money where our mouth is.
Our performance reporting is completely transparent. All trades are listed on the performance page, with the exact entry/exit dates and P/L percentage.
It is not a coincidence that SteadyOptions is ranked #1 out of 704 Newsletters on Investimonials, a financial product review site. Read all our reviews here. The reviewers especially mention our honesty and transparency.
We place a lot of emphasis on options education. There is a dedicated forum where every trade is discussed before the trade is placed. We discuss different strategies and potential trades. Unlike most other services that just send the trade alerts, our members understand the rationale behind the trades and not just blindly follow the alerts. SO actually helps members to become better traders.
In addition to SteadyOptions, we offer the following services:
- Anchor Trades - Stocks/ETFs hedged with options for conservative long term investors.
- Steady Condors - Hedged monthly income trades managed by the Greeks.
- LC Diversified Portfolio - broadly diversified, absolute return, multi-strategy portfolio.
The LCD is our most diversified and scalable portfolio, I highly recommend that members check it out. It is offered as an added bonus of all subscription plans. We also offer Managed Accounts for Anchor Trades and LCD.
Let me finish with my favorite quote from Michael Covel:
"Profits come in bunches. The trick when going sideways between home runs is not to lose too much in between."
Subscription is now open to new members for a limited time. We invite you to join one of the most successful options newsletters. When you join SteadyOptions, we will share with you all we know about options. We will never try to sell you any additional "proprietary systems", training, webinars etc. All our "secrets" are included in your monthly fee.
Happy Trading from SO!