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.

73.6%

73.6%

Overall Percent of Winners

Selective Metrics

Trade Count & Averages

The stats below represent the number of real trades placed during each period and the all-time averages for each category across the entire portfolio and all trades.

  • 22

    7 Days

  • 45

    30 Days

  • 3,714

    All Time

$118

Average
Profit

-$176

Average
Loss

25

Time
Held

23

IV
Differential

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.

1705

Opening Trades

1573

Closing Trades

436

Adjusting Trades

50%

Stocks

50%

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.

Volatility Metrics

IV Capture Rate

The polar radar chart below expresses the all-time implied volatility (IV) captured per strategy type. For example, if we opened a short premium strategy when IV was in the 90th percentile and closed it when IV when it was in the 80th we would have effectively captured 10 IV "points".

Directional Metrics

Market Outlook

The pie chart below represents the all-time percentage of new trades categorized by initial market outlook either bullish, bearish, neutral or earnings. It should be noted that all earnings trades use neutral strategies but are held for shorter periods.

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.

23 Days

Strangles

23 Days

Straddles

31 Days

Iron Condors

26 Days

Iron Butterflies

23 Days

Calendars

28 Days

Diagonals

33 Days

Butterflies

27 Days

Credit Spreads

51 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.

84%

Strangles

93%

Straddles

67%

Iron Condors

63%

Iron Butterflies

55%

Calendars

20%

Diagonals

61%

Butterflies

74%

Credit Spreads

51%

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.

  • $67

    Strangles

  • $132

    Straddles

  • $91

    Iron Condors

  • $136

    Iron Butterflies

  • $-7

    Calendars

  • $-62

    Diagonals

  • $45

    Butterflies

  • $39

    Credit Spreads

  • $-61

    Debit Spreads

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