Option Salary has been running for two years, a poorly timed launch just before the pandemic, but (spoiler alert) we’ve had terrific results. Option Salary is transparent about its results, with top level metrics publicly displayed. Members receive trades Before they are placed and see actual opens and closes (win or lose) via the website, emails, and optional text messages.
Two Year Results
S&P 500 – The S&P 500 has had an amazing 2 year run (although not a great start to 2022!). Using the SPX closing price from Dec 31 2019 (3230.78) through Dec 31 2021 (4766.18), the SPX returned 47.5%. That is a Tremendous return and if the market always did that well, I would stop trading options and simply buy and hold. The market, of course, does not always do that well and with the SPX at 4397.94 (as of 1/21/2022), that return would be 36.1%. Which, is still terrific and a reminder to those panicking at the ~8% sell-off to – stop panicking.
If you Did buy and hold the market, a $25k account is now worth $36,881.
Option Salary – With just a 5% level of risk on our spread trades placed in 2020 and 2021, Option Salary returned 55.7% (as of 1/21/2022, we’re up to 56.2%). We also had the nice benefit of being positive on our accounts the entire time – while the market plummeted in the spring of 2020. For those that started with $25k, they’d now have $38,925. We’ve also had an over 94% win rate. While I haven’t gotten any complaints about that rate, we do lose from time to time and that rate will likely come down.
Results – Option Salary Silver members returned about 6% more than those that bought and held the S&P 500. In real dollar terms, Option Salary members would have $2044 more than buy and hold investors, for each $25k applied to these strategies.
Caveats –
- You can’t directly “buy” SPX, but there are numerous ETFs that track the S&P 500 and results would be similar. Dividends paid on SPY or similar ETFs, would narrow the gap a bit (~2%)
- Option Salary trade sizes are based on a fairly conservative approach. More aggressive traders would have done even better, more conservative traders, would have done worse.
- All trades are for educational purposes and do not constitute financial advice.
More details
The majority of the trades are short put spreads or short puts, with the occasional ratio spread, call spread, covered call, or straddle thrown into the mix. This approach results in Many small winners and few big losers. In flat or moderately bullish markets, this strategy will often out perform. In Very bullish markets, this strategy will do well, but may trail a buy and hold approach (although we didn’t in the last two years). In bearish markets or choppy volatile markets, this strategy may lose, but may still out perform a buy and hold. Trade selection, trade size, and frequency are adjusted in more bearish environments.
Trade ideas are just that – ideas – and are not financial advice. Any trade placed by a member is at their own discretion and they are responsible for their own trades and results based on their risk appetite, account size, and financial goals.
Thank you!
I want to take a minute and thank our members for their support and feedback throughout the two years of our operations. When we launched at the beginning of 2020, we didn’t anticipate a global pandemic nor the large influx of new traders and their interest in options. Thanks for all of the questions, emails, phone calls, and messages throughout the years – it’s great that so many people are learning about how options can be used to create a second salary.
If you are active on Reddit, Twitter, Facebook, etc. you will see that most option traders are still struggling to make a consistent profit. I am very happy that our members are doing great – beating the market while they learn how to trade. If you are enjoying the service, please tell a friend and help them on their trading journey.
If you aren’t a Silver member yet, then Join Us today!
