Uncovered Options Trading System
In July of 2016 our signals were caught by the Brexit event. On the Brexit day vote, both signals (QQQ and SPY) were in green. However, when overnight the Brexit vote results were released in the favor of Great Brittan exiting the Euro Union, our stop-losses were triggered at the market open on June 24th of 2016. Both signals were closed: QQQ lost 109% from the premium and SPY lost 100% from premium.
Note: 100% loss in uncovered options does not mean that the entire portfolio was lost. 100% loss means that the amount equal to 100% of the premium for selling options short was lost.
Signal: | SPY $201 7/2016 | Sell (Short) Puts |
Opened: | 06/22/16 15:05 | $1.64 |
Closed: | 06/24/16 09:30 | $3.29 |
Profit on Premium: | -100.61% | |
Signal: | QQQ $102 7/2016 | Sell (Short) Puts |
Opened: | 06/15/16 14:40 | $0.72 |
Closed: | 06/24/16 09:30 | $1.51 |
Profit on Premium: | -109.72% | |
Signal: | SPY $205 6/2016 | Sell (Short) Puts |
Opened: | 06/06/16 15:08 | $0.31 |
Closed: | 06/17/16 16:15 | $0.00 |
Profit on Premium: | +100.0% | |
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.