Performance Results July to October
July = +16%
August = +23%
September = 27%
October = +9%
I am gearing for a weak November performance for the month due to the following reasons:
- the Trump rally was completely unpredictable in my view. Admittedly even the major houses got the call wrong and with that a number of inverse positions which had been put in place to hedge against the “calamity of a Trump victory” actually went against us.
- Brazil fell completely out of favour with the BRZU 3x ETF losing 36.88% in the month of November.
- We have still not found a replacement for SRPT which accounted for a large portion of the September gains.
For November we will look to “clear out” some of the non-optionable positions to accumulate additional “writable” capital. On an annualized basis we are still looking good and I am confident that there will be more opportunities to capitalize in the coming weeks.
Average holding period of trades continues to be in range with the 3 months being around 9 days per trade. The holding period has increased due to a reduction in overall volatility resulting in premium being more time based than fear based.
Loss % of trades remains within the range of tolerance with average over the 4 months at 29%. The current approach is not 100% fool proof and we are going to have to take knocks every now and then – remember the key philosophy is to capitalize on lots of small trades over a long time rather than trying to knock a home run out of the park every day.
Average profit per trade remains around $339 per trade including the huge month of September where we were fortunate to be riding the coat tails of SRPT’s FDA approval. These are one off events and it was completely unpredictable that we would be in the positions we were in when we were in them.
Total number of trades per day also remains well below 10 which is great for all of us who have better things to do than watch a screen!
For more on my strategy please connect with me at www.eastoptiontradingpost.com