September Portfolio Income – 3.63% Return

The September portfolio was once again extremely profitable and another month without ANY losses or trades closed early! Compared to the August portfolio, we increased our return comparatively from 3.14% to 3.63%. In addition, we showed once again that even in the face of a major market move higher, selling options with out P.O.T.S system still produced a profit. Annualized our returns would be roughly 43.6%!

Back in June and July when we were building the September portfolio, we had anticipated an upward move and therefore sold a lot of Puts below the market which worked beautifully as the markets rallied higher. In addition because premiums were so attractive for Call options, we used half of our capital to sell Calls above the market. This created a completely hedged income portfolio for the month. Remember the indexes cannot be in two places at once during expiration.

To re-cap this month’s income, let’s look at what we made vs. our required investments (in margin). Here are the positions we had with corresponding PROFIT/INVESTMENT and RETURN:

IWM SEPTEMBER 65 CALL- $15/$570 = 2.63% Return

IWM SEPTEMBER 63 CALL- $23/$551 = 4.17% Return

DIA SEPTEMBER 70 PUT- $29/$700 = 4.14% Return

QQQQ SEPTEMBER 31 PUT – $9/$270 = 3.33% Return

As we said earlier, we did not have to close out any positions this month at a loss. This just goes to show everyone that by writing options, you are basically forcing the indexes to make dramatic moves in a very short time frame. And since we have positions on BOTH sides of the market (Puts and Calls), you are guaranteed to make money on at least one side of the trade every time – or both sides like we do every month.

With regard to TOTAL INCOME and RETURN, the September portfolio produced $76 of total income after investing just $2,092 in margin. That means we saw a total portfolio return of 3.63% this month. As we usually point out, our calculations assume that you enter just 1 (ONE) contract for each trading alert – i.e. a total of 4 contracts for the month. Those members with a higher captial base should be entering multiple contract positions each week.

Currently we have a fully invested October income portfolio and are in the middle of building the November portfolio. The outlook for both of these portfolios is extremely positive right now as we are still writing options far away from the market’s current price.

New Trading Alert to follow this SUNDAY NIGHT for our Members! If you would like to start seeing this type of return in your portfolio, sign up for a membership here.

Enjoy your profits!