Portfolio Performance

Section Overview

Real-Time Performance

Part of our mission here at Option Alpha is to offer the highest level of transparency possible in order to help you gain more confidence in your own trading system. Recently we developed a propriety portfolio tracking software that monitors and reports key statistics and metrics in real-time. This software tracks and categorizes real money trades, not paper or backtested trades.

As part of our higher level memberships, we stress that options trading is just a game of numbers and statistics. Your focus should be on placing lots of small, high-probability trades that captures the long-term overstatement of implied volatility. Hence, our performance metrics below focus on win rate, average profit/loss, time held and IV differential which to us represents the ability to generate consistent income.

Consistency Metrics

Total Win Rate

The probability speedometer below gauges the all-time win rate of all trades across all strategies combined for our entire portfolio.

74.3%

74.3%

Overall Percent of Winners

Order Metrics

Distribution by Type & Underlying

The graphs below displays the all-time distribution of trades by order type; opening, closing or adjustment as well as tags for either Stock or ETF positions. Note that we include any Index or Futures option trades under the ETF category for simplicity.

1243

Opening Trades

1239

Closing Trades

431

Adjusting Trades

13%

Stocks

87%

ETFs

Distribution Metrics

Allocation by Strategy Type

The line chart below reflects the all-time percentage of new trades entered broken down by initial strategy type. Adjusting trades are not considered in this data set as they are continuations of the initial strategy, not stand alone positions.

Duration Metrics

Time Held by Strategy Type

The timeline data set below presents the all-time holding period on average for each strategy type. Unless closed in advance, we consider any trades that are held through expiration at the total daily count for that cycle.

25 Days

Strangles

20 Days

Straddles

19 Days

Iron Condors

30 Days

Iron Butterflies

23 Days

Calendars

35 Days

Diagonals

0 Days

Butterflies

28 Days

Credit Spreads

21 Days

Debit Spreads

Probability Metrics

Win Rate by Strategy Type

The donut charts below show the all-time percentage of winning trades categorized strategy type. Any trade that generates an overall profit (after adjustments) or more than $1 is considered a "WIN" by our tracking software.

80%

Strangles

65%

Straddles

47%

Iron Condors

68%

Iron Butterflies

58%

Calendars

0%

Diagonals

0%

Butterflies

66%

Credit Spreads

59%

Debit Spreads

Profitability Metrics

Average Profit (Loss) by Strategy Type

The bar charts below shows the all-time average profit or loss by strategy type. Note that the numbers are displayed based on option contract prices. For example $1.00 average profit per contract would equal $100 dollars of true account value.

  • $69

    Strangles

  • $102

    Straddles

  • $171

    Iron Condors

  • $6

    Iron Butterflies

  • $14

    Calendars

  • $-70

    Diagonals

  • $0

    Butterflies

  • $-4

    Credit Spreads

  • $43

    Debit Spreads