Uncovered Options Trading System
In August of 2019, following the complications in the USA and China trade war, the market indexed (S&P 500 and Nasdaq 100) reversed down sharply. The technical indicators pointed to the high odds of having a short-lived correction only and our system generated two trading signals on this down moves. However the market indexes extended their drop for one more day and as the market rebounded afterwards, the stop-loss was set to protect the system. Unfortunately, both stop-losses were triggered and both (QQQ and SPY) trading signals were closed. This led to having a negative trade on the QQQ. This is the first red signal in 2019.The market indexes continued to be volatile the entire August, therefore, pour system was out of signals for the rest of the month.
Signal: | SPY $285 8/2019 | Sell (Short) Puts |
Opened: | 08/01/19 14:10 | $1.41 |
Closed: | 08/09/19 10:09 | $1.16 |
Profit on Premium: | +17.7% | |
Signal: | QQQ $185 8/2019 | Sell (Short) Puts |
Opened: | 08/01/19 14:01 | $1.17 |
Closed: | 08/09/19 12:27 | $2.30 |
Profit on Premium: | -96.6% | |
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.