Shorting Options

Hypothetical Monthly Returns (includes typical commissions and system fees)

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2008											+8.2%	+9.1%
2009	(2.6%)	(5.1%)	+10.1%	+10.4%	+6.1%	+1.1%	+5.4%	+5.8%	+3.1%	(2.4%)	+6.2%	+2.0%
2010	(3.8%)	+5.9%	+3.3%	+1.8%	(4.8%)	(10.4%)	+15.8%	+0.2%	+10.5%	+5.0%	(0.2%)	+10.7%
2011	+2.6%	+4.1%	(0.2%)	+2.6%	+0.6%	(2.4%)	(0.9%)	(6.9%)	(7.7%)	+19.9%	(8.4%)	+7.2%
2012	+8.3%	+2.2%	+2.3%	(0.2%)	(2.9%)	+2.0%	+1.5%	+1.6%	(1%)	+0.8%	(0.6%)	(0.1%)
2013	(3%)	(0.7%)	(1.6%)	(1.1%)	(2.9%)

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Show chart: Standard | Monte Carlo
Technical Analysis: Moving Average daysX

Instruments	Mostly Options; (some stocks)
Strategies	Buy undervalue, Technical analysis, Volatility trading
System started	11/20/2008 (55 months ago)
System developer	Sovereign Citizen Investments, UCC 1-308 (Last login to C2: 9/6/12 18:49) C2 Score: 997

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Note: system has an open, losing position which is not being displayed to non-subscribers.

Hypothetical Trading Results
Opened ET	B/S	#	Symbol		Price	Closed	Price	Risk	P/L
11/24/08 9:30	BUY	400	SPY	STANDARD & POOR'S DEPOSITARY	106.48	8/19/12 9:00	131.75	Extreme	$10,100
7/10/12 12:29	SELL	2	SPY1218H141	SPY Aug12 141 call (exp 08/18/2012)	0.52	8/19 9:00	0.00	Low	$102
7/10/12 12:27	SELL	1	SPY1218T123	SPY Aug12 123 put (exp 08/18/2012)	0.45	8/19 9:00	0.00	Low	$44
5/17/12 11:06	SELL	2	SPY1229F140	SPY Jun12 140 call (exp 06/29/2012)	0.55	6/30 9:00	0.00	n/a	$108
5/17/12 11:08	SELL	1	SPY1229R118	SPY Jun12 118 put (exp 06/29/2012)	0.81	6/30 9:00	0.00	Low	$80
2/22/12 15:13	SELL	1	SPY1230O119	SPY Mar12 119 put (exp 03/30/2012)	0.28	3/31 9:00	0.00	Low	$27
2/22/12 15:13	SELL	2	SPY1230C145	SPY Mar12 145 call (exp 03/30/2012)	0.08	3/31 9:00	0.00	Low	$14
1/25/12 11:49	SELL	1	SPY1218N119	SPY Feb12 119 put (exp 02/18/2012)	0.19	2/19 9:02	0.00	Low	$18
1/25/12 11:50	SELL	2	SPY1218B138	SPY Feb12 138 call (exp 02/18/2012)	0.13	2/19 9:02	0.00	Low	$24
12/21/11 11:31	SELL	2	SPY1221A131	SPY Jan12 131 call (exp 01/21/2012)	0.30	1/22/12 9:05	0.00	Low	$58
12/21/11 11:29	SELL	1	SPY1221M111	SPY Jan12 111 put (exp 01/21/2012)	0.43	1/22/12 9:05	0.00	Low	$42
11/22/11 9:30	SELL	1	SPY1117X106	SPY Dec11 106 put (exp 12/17/2011)	0.79	12/18 9:02	0.00	Low	$78
11/22/11 9:30	SELL	2	SPY1117L129	SPY Dec11 129 call (exp 12/17/2011)	0.35	12/18 9:02	0.00	Low	$68
10/28/11 9:30	SELL	1	SPY1119W118	SPY Nov11 118 put (exp 11/19/2011)	0.60	11/20 9:03	0.00	Low	$59
10/28/11 9:30	SELL	2	SPY1119K136	SPY Nov11 136 call (exp 11/19/2011)	0.20	11/20 9:02	0.00	Low	$38

Hypothetical Trading Results
Opened ET	B/S	#	Symbol		Price	Closed	Close Price	Risk	P/L
11/24/08 9:30	BUY	400	SPY	STANDARD & POOR'S DEPOSITARY	106.48	8/19/12 9:00	131.75	Extreme	$10,100
11/24/08 9:30	BTO	100	SPY		81.92
5/23/10 9:00	BTO	200	SPY		110.00
12/19/10 9:01	STC	100	SPY		124.00
8/21/11 9:01	BTO	100	SPY		124.00
1/22/12 9:05	STC	200	SPY		131.00
8/19/12 9:00	STC	100	SPY		141.00
7/10/12 12:29	SELL	2	SPY1218H141	SPY Aug12 141 call (exp 08/18/2012)	0.52	8/19 9:00	0.00	Low	$102
7/10/12 12:29	STO	2	SPY1218H141		0.52
8/19/12 9:00	exp	2	SPY1218H141		0.00
7/10/12 12:27	SELL	1	SPY1218T123	SPY Aug12 123 put (exp 08/18/2012)	0.45	8/19 9:00	0.00	Low	$44
7/10/12 12:27	STO	1	SPY1218T123		0.45
8/19/12 9:00	exp	1	SPY1218T123		0.00
5/17/12 11:06	SELL	2	SPY1229F140	SPY Jun12 140 call (exp 06/29/2012)	0.55	6/30 9:00	0.00	n/a	$108
5/17/12 11:06	STO	2	SPY1229F140		0.55
6/30/12 9:00	exp	2	SPY1229F140		0.00
5/17/12 11:08	SELL	1	SPY1229R118	SPY Jun12 118 put (exp 06/29/2012)	0.81	6/30 9:00	0.00	Low	$80
5/17/12 11:08	STO	1	SPY1229R118		0.81
6/30/12 9:00	exp	1	SPY1229R118		0.00
2/22/12 15:13	SELL	1	SPY1230O119	SPY Mar12 119 put (exp 03/30/2012)	0.28	3/31 9:00	0.00	Low	$27
2/22/12 15:13	STO	1	SPY1230O119		0.28
3/31/12 9:00	exp	1	SPY1230O119		0.00
2/22/12 15:13	SELL	2	SPY1230C145	SPY Mar12 145 call (exp 03/30/2012)	0.08	3/31 9:00	0.00	Low	$14
2/22/12 15:13	STO	2	SPY1230C145		0.08
3/31/12 9:00	exp	2	SPY1230C145		0.00
1/25/12 11:49	SELL	1	SPY1218N119	SPY Feb12 119 put (exp 02/18/2012)	0.19	2/19 9:02	0.00	Low	$18
1/25/12 11:49	STO	1	SPY1218N119		0.19
2/19/12 9:02	exp	1	SPY1218N119		0.00
1/25/12 11:50	SELL	2	SPY1218B138	SPY Feb12 138 call (exp 02/18/2012)	0.13	2/19 9:02	0.00	Low	$24
1/25/12 11:50	STO	2	SPY1218B138		0.13
2/19/12 9:02	exp	2	SPY1218B138		0.00
12/21/11 11:31	SELL	2	SPY1221A131	SPY Jan12 131 call (exp 01/21/2012)	0.30	1/22/12 9:05	0.00	Low	$58
12/21/11 11:31	STO	2	SPY1221A131		0.30
1/22/12 9:05	exp	2	SPY1221A131		0.00
12/21/11 11:29	SELL	1	SPY1221M111	SPY Jan12 111 put (exp 01/21/2012)	0.43	1/22/12 9:05	0.00	Low	$42
12/21/11 11:29	STO	1	SPY1221M111		0.43
1/22/12 9:05	exp	1	SPY1221M111		0.00
11/22/11 9:30	SELL	1	SPY1117X106	SPY Dec11 106 put (exp 12/17/2011)	0.79	12/18 9:02	0.00	Low	$78
11/22/11 9:30	STO	1	SPY1117X106		0.79
12/18/11 9:02	exp	1	SPY1117X106		0.00
11/22/11 9:30	SELL	2	SPY1117L129	SPY Dec11 129 call (exp 12/17/2011)	0.35	12/18 9:02	0.00	Low	$68
11/22/11 9:30	STO	2	SPY1117L129		0.35
12/18/11 9:02	exp	2	SPY1117L129		0.00
10/28/11 9:30	SELL	1	SPY1119W118	SPY Nov11 118 put (exp 11/19/2011)	0.60	11/20 9:03	0.00	Low	$59
10/28/11 9:30	STO	1	SPY1119W118		0.60
11/20/11 9:03	exp	1	SPY1119W118		0.00
10/28/11 9:30	SELL	2	SPY1119K136	SPY Nov11 136 call (exp 11/19/2011)	0.20	11/20 9:02	0.00	Low	$38
10/28/11 9:30	STO	2	SPY1119K136		0.20
11/20/11 9:02	exp	2	SPY1119K136		0.00

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Statistics

Analytics

All Statistics Based on Hypothetical Results
Trades	95
# Profitable	91 (95.8%)
# months tracked	55
Profitable months	32 (58.2%)
Avg trade duration	43.0 days
Annual return (compounded)	24.8%
Average win	$198
Average loss	$682
Profit factor	8.8:1
Max peak-to-valley drawdown (historical)	24.05%
drawdown period	July 22, 2011 to Oct 04, 2011
Correlation w/ S&P	0.500
Sharpe ratio	1.164
Keep after worst-case slippage	100.0%
Probabilities of future account loss
Chance of 10% account loss	100.0%
Chance of 20% account loss	100.0%
Chance of 30% account loss	0.0%

Chance of 50% account loss	0.0%
Chance of 100% account loss	0.0%
Average Profit to Drawdown (APD)	0.96
Average P/L per unit traded	$48.41
Sum of dividends and cash expir. in model account	$1,776

Reviews

May 17, 2012 from Subscriber

Hello?! Anything happening here?! Track record is good but recently just a long ETF position, no shorting of options at all... what's going on?

Rebuttal, posted on July 20, 2012 by system developer:

Sorry about that. The market was just confusing at that time. I don't just make trades just to trade. I want them to be positive. If I'm not confident then I'm not going to make a trade. That's why I waited.

May 9, 2011 from Subscriber

A tiny jewel, which I think of as a dividend booster for an underlying equity position (or possibly as a way to get a respectable amount of interest on a hunk of cash) called the "covered position." Preferably the covered position will be a semi-permanent stake in 100 shares of SPY for each option contract traded. I believe the developer here has transcended much of the risk of collecting premiums through option writing, albeit by settling for tiny but steady rewards. Still, with a thorough understanding of what to expect and, more importantly, what not to expect, you too may find this system a little gem.

March 28, 2011 from Subscriber

This strategy is more of long ETF(since 2008) and less of shorting options. It shorts monthly of about 3 contracts that the profit potential is limited to about $61/mo to $150/mo. Not the profit potential from options that it implies. It does cover the low monthly cost. It is unknown how long you would need to wait to enter the ETF condition. Just not what I had in mind.

Rebuttal, posted on April 17, 2011 by system developer:

Shorting options was the title I created because shorting is another term for selling. I keep an ETF long for a covered position, but every other trade is a short. Correct, there isn't a great deal of profit coming from each contract, but that isn't the goal of the system. The goal is the largest number of successful trades. This system is not for everyone and is best suited for an investor that is not planning to sell what they already have invested but to earn extra of what they already have in addition to capital gains and dividends which is why those with IRAs are very well suited for this strategy. I appreciate all those who take the time and investigate this strategy whether or not you come to the conclusion of it's suitability for you personally.

System Description

DUE TO LIMITED SPACE, A MORE DETAILED DESCRIPTION CAN BE FOUND HERE (which includes Frequently Asked Questions): http://tinyurl.com/lm7zgv PLEASE READ IT BEFORE MAKING A DECISION ON MY STRATEGY. THANK YOU VERY MUCH Have an IRA, 401(K) or other account that you don't want to withdraw from? Then this strategy is perfect for you. All you need is to be approved to sell options in your account, and you can use this strategy to beat the S&P year after year. How successful is this way of investing? Check out all of the trades we've closed out on and compare how many are profitable to how many have lost money. We might not double your money overnight, but you'll never go broke when you make continuous profits. FYI: I use SPY as my covered position so I'm not counting it as a loss if it is ever in-the-red. It's one of the safest and liquid ETF's out there and in this strategy I don't plan on selling any shares if I don't really have to. Please factor this in when evaluating my strategy. ----------------------------------------------- Please be kind and visit my other websites below, thank you: Save up to 35% on all of your online purchases from sites like eBay, Walmart, Target, Best Buy, Overstock, etc. = http://www.mrrebates.com/?refid=304848 (copy and paste the full link) Sovereign Citizens = http://www.zazzle.com/sovereigns* All rights reserved without: prejudice, recourse or notice. (UCC 1-308)

- This System Description text was submitted by the creator of this strategy. Collective2 verifies only trading signals and hypothetical trading results. We have not verified that this text above is an accurate system description. Remember there is a substantial risk of loss in trading. Past performance is not indicative of future results. Do not trade with money you cannot afford to lose.

Report

Dividends Itemized
Started	$10,000
Buy Power	$18,832
Cash	$43,751
Equity	($2,513)
Cumulative $*	$17,138
Total System Equity	$27,138
Margined	$22,406
Open P/L	($2,513)

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