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Are you interested in simple and understandable instructions and suggestions for trading stock options?
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- Here is a summary of our results for the month of July 2008:
HISTORICAL BACKTESTING RESULTS FOR THE PERIOD: 07/01/08 Thru 07/31/08 Strategy & Other Information: Number of Hits that Closed During this Period % of Total Total $ Option Gain % Winners Number of Positive Trades Number of Negative Trades Average $ Gain Per Positive Contract: Average $ Gain Per Negative Contract: Average % Net Option Gain Average $ Net Option Gain Closed Normal Longs 5 8.6% (300.32) 40.0% 2 3 $ 338.24 $ (325.60) -13.3% $ (60.06) Closed Normal Shorts 13 22.4% 3,925.76 69.2% 9 4 $ 463.08 $ (60.48) 67.1% $ 301.98 Closed Dead Cat Bounces [Longs] 36 62.1% 1,202.59 44.4% 16 20 $ 374.56 $ (239.52) 7.4% $ 33.41 Closed Hot Cat Ricochets [Shorts] 4 6.9% 1,904.64 100.0% 4 - $ 476.16 $ - 105.8% $ 476.16 Total Trades: 58 Total Option Gain: $ 6,732.67 Total Number of Positive Trades: 31 Backtesting Theoretical Assumptions: Percent Positive Trades: 53% Positions opened and closed at the open of the day indicated. Average $ Gain Per Pos. Contract: $ 411.02 Includes all options closed this time period (Including buys from previous month). Total Number of Negative Trades: 27 Option Delta = 0.64 (Based upon the DOW 30, March 14, 2008, One Step into the Money) Percent Negative Trades: 46.6% Option Cost = Entry Stock Price * 0.064 + 1.0813 [R2 = 0.53] Average $ Gain (Loss) Per Neg. Contract: $ (222.56) (Based upon the DOW 30, March 14, 2008, One Step into the Money) Avg. Cost per Contract: $ 619.34 Catastrophic Stop Loss: $500 Avg. $ Gain per Contract: $ 116.08 Avg. % Gain per Contract: 25.8% Normalized Gain: 567.5%
To see detailed Historical Results for this month and other months & quarters [Click Here]
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- The proprietary algorithms were developed by two Ph.D.s. [ Who are we?]
- You will Learn how to analyze the entry/exit picks.
- You will trade only the best options: NASDAQ 100 and
S&P 500.
- You will learn how to specialize in true swing trading with an average holding period of 10 days
- You can not afford to miss miss the picks from this service!
- Subscription is $19.95 per month [Click Here to Trial/Subscribe]
[We offer a trial period. No long term contracts required.]
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Other Thoughts:
- AOT Picks are generated using a technology-based automated process.
- Stock and Option Trading is a rewarding method of developing and maintaining a cash flow for personal and investment objectives.
- The percent gain for options is much greater for the amount of initial capital invested as compared to stocks.
- The amount of the initial investment is much lower than stocks.
- There is a minimal loss that you can suffer with an option ---- the cost of the contract.
- Our Trading Strategy is based upon swing trading. We enter and exit a trade within about 3 to 15 days with an average holding period of 10 days.
- We do not hold past 22 days.
- Our Strategy identifies those stocks the are poised for short term gains (call options) or losses (put options) using our proprietary algorithms.
- After further careful evaluation and then answering basic questions we then may trade the options that are associated with that acceptable stock.
- We only trade options of stocks that are on the S&P500 and the NASDAQ100. There are about 540 stocks which we evaluate on a daily basis. Consequently , there are a plethora of candidates.
- We have been doing this for years now and are confident that you too will make rewarding option trades.
- You can see an option chain by going to: http://biz.yahoo.com/opt/
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The team at: American Option Trader LLC
