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December


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
Nov 28, 2016 DIA 196/198 Call 0.10 1.70 (84.2%) Closed 196/198 for 1.60 net debit.
Dec 14, 2016 DIA 201/203 Call 0.07 0.00 3.6% Expired worthless
Nov 28, 2016 IWM 139/141 Call 0.11 0.00 5.8% Expired worthless
Dec 12, 2016 SPY 229/231 Call 0.14 0.00 7.5% Expired worthless
The DIA position averaged (40.3%)
The IWM position averaged 5.8%
The SPY position averaged 7.5%

Average return for all positions: (9.0%)

SPECIAL NOTE ON THIS MONTH'S TRADE: The Trump rally has continued to push the markets to record levels. The Dow is on pace to pass the 20,000 milestone before the end of the year. Analysts have been saying that the market has been frothy as of late but we may not see a significant downturn until we reach the milestone. Also during this cycle, the Fed hiked rates for only the second time in a decade. The move was highly anticipated and just 3 rate hikes are expected in 2017. We'll see if the Trump rally turns into the Santa Claus rally to finish off 2016.

November


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
Nov 03, 2016 DIA 166/168 Put 0.14 0.00 10.2% Expired worthless
Nov 11, 2016 193/195 Call 0.05 0.00 Expired worthless
Nov 01, 2016 IWM 107/109 Put 0.14 0.00 5.4% Expired worthless
Nov 11, 2016 131/133 Call 0.05 0.09 Expired worthless
Nov 01, 2016 SPY 196/198 Put 0.14 0.00 9.7% Expired worthless
Nov 11, 2016 222/224 Call 0.04 0.00 Expired worthless
The DIA position averaged 10.2%
The IWM position averaged 5.4%
The SPY position averaged 9.7%

Average return for all positions: 8.4%

SPECIAL NOTE ON THIS MONTH'S TRADE: The 2016 Election came to a surprising conclusion during this cycle. Donald Trump has been elected the new President of the United States (POTUS). This was a stunning defeat for Hillary Clinton as most polling showed her in the lead. Wall Street was initially spooked by the Billionaire's victory but reversed course overnight, sending the markets to record highs never seen before. Fed comments this cycle also assured investors that a rate hike is very likely next month.

October


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
Oct 10, 2016 DIA 187/189 Call 0.07 0.00 10.9% Expired worthless
Oct 14, 2016 176/178 Put 0.14 0.00 Expired worthless
Oct 10, 2016 IWM 128/130 Call 0.07 0.00 11.4% Expired worthless
Oct 14, 2016 116/118 Put 0.15 0.00 Expired worthless
Oct 13, 2016 SPY 206/208 Put 0.18 0.00 9.9% Expired worthless
The DIA position averaged 10.9%
The IWM position averaged 11.4%
The SPY position averaged 9.9%

Average return for all positions: 10.7%

SPECIAL NOTE ON THIS MONTH'S TRADE: As the 2016 Presidential campaign winds down, the crazy debates were no comparison to this monthly cycle. It was fairly uneventful and one important thing on traders' minds now is who will become the next President of the United States. The decision could move markets and we will be fully prepared for that move come the next cycle.

September


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
Sep 02, 2016 DIA 178/180 Put 0.11 0.00 5.8% Expired worthless
Sep 02, 2016 IWM 117/119 Put 0.11 0.00 5.8% Expired worthless
Sep 02, 2016 SPY 209/211 Put 0.11 0.00 5.8% Expired worthless
The DIA position averaged 5.8%
The IWM position averaged 5.8%
The SPY position averaged 5.8%

Average return for all positions: 5.8%

SPECIAL NOTE ON THIS MONTH'S TRADE: Hawkish comments from one Fed official and the markets sell off due to fears of a possible rate hike this month. The very next day, another official made dovish comments and the markets rebounded. Analysts are forecasting a 25% chance of a rate hike in their next meeting. We'll see what happens after their meeting on September 20 and 21.

August


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
Jul 29, 2016 DIA 189/191 Call 0.07 0.00 3.6% Expired worthless
Jul 28, 2016 IWM 126/128 Call 0.09 0.00 4.7% Expired worthless
Jul 28, 2016 SPY 223/225 Call 0.08 0.00 4.2% Expired worthless
The DIA position averaged 3.6%
The IWM position averaged 4.7%
The SPY position averaged 4.2%

Average return for all positions: 4.2%

SPECIAL NOTE ON THIS MONTH'S TRADE: We had a very strong jobs report for July but the Fed kept rates unchanged at their meeting. Forecasts are showing no hike until December but this can all change depending on the data points between now and then. Market highs became a norm for almost an entire week during this cycle and we are still at those levels. Some are feeling a bit of a top here so a profit taking couple of weeks could be in the cards.

July


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
Jun 29, 2016 IWM 104/106 Put 0.17 0.00 (16.4%) Expired worthless
Jul 08, 2016 120/122 Call 0.05 0.52 Closed 120/122 for 0.47 net debit.
Jun 29, 2016 SPY 194/196 Put 0.14 0.00 (9.1%) Expired worthless
Jul 08, 2016 216/218 Call 0.07 0.38 Closed 216/218 for 0.31 net debit.
The IWM position averaged (16.4%)
The SPY position averaged (9.1%)

Average return for all positions: (12.8%)

SPECIAL NOTE ON THIS MONTH'S TRADE: England voted to exit the European Union and the world markets took a tumble after the news. Shortly after the vote, the British Prime Minister, David Cameron, announced that he would step down. After the dust settled, the world markets quickly recovered setting up the US markets for new record highs.

June


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
Jun 03, 2016 IWM 120/122 Call 0.05 0.00 2.6% Expired worthless
Jun 03, 2016 SPY 215/217 Call 0.05 0.00 2.6% Expired worthless
The IWM position averaged 2.6%
The SPY position averaged 2.6%

Average return for all positions: 2.6%

SPECIAL NOTE ON THIS MONTH'S TRADE: The Fed decided to hold rates steady even though many analysts forecasted a hike this month. Instead, the Fed admitted that the economy was slowing and there would probably be only 1 more rate hike this year, possibly near the end of 2016. The markets responded with a 5-day selloff but there was no panic in the air.

May


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
May 06, 2016 DIA 167/169 Put 0.13 0.00 7.0% Expired worthless
May 06, 2016 IWM 103/105 Put 0.12 0.00 6.4% Expired worthless
May 05, 2016 SPY 193/195 Put 0.11 0.00 5.8% Expired worthless
The DIA position averaged 7.0%
The IWM position averaged 6.4%
The SPY position averaged 5.8%

Average return for all positions: 6.4%

SPECIAL NOTE ON THIS MONTH'S TRADE: This was a tough options cycle for the Dow Jones Industrials Average as it recorded its first 4-week losing streak since 2014. The other indices followed its lead but it wasn't panic selling at all. Most of the pullback was due to the possibility of a rate hike but after the Fed meeting, it is likely to occur in June. Our traders opened positions late in the cycle and after most of the market declines had already taken place. We were anticipating a bounce but it just didn't happen so we took a conservative play and settled for single spreads instead of taking on unneeded risk.

April


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
Mar 31, 2016 IWM 115/117 Call 0.07 0.00 8.3% Expired worthless
Apr 08, 2016 104/106 Put 0.09 0.00 Expired worthless
Apr 01, 2016 SPY 211/213 Call 0.10 0.00 10.5% Expired worthless
Apr 08, 2016 198/200 Put 0.10 0.00 Expired worthless
The IWM position averaged 8.3%
The SPY position averaged 10.5%

Average return for all positions: 9.4%

SPECIAL NOTE ON THIS MONTH'S TRADE: This cycle made up for all the recent losses and closed out near the highs of 2016. The Fed decided to keep rates steady and analysts don't believe any hikes will occur until June at the earliest.

March


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
Mar 11, 2016 SPY 206/208 Call 0.16 0.00 8.7% Expired worthless
The SPY position averaged 8.7%

Average return for all positions: 8.7%

SPECIAL NOTE ON THIS MONTH'S TRADE: The markets rallied back this cycle with a couple of blips along the way. The high VIX and uncertain movement of the market made it difficult to commit to all 3 positions this month. We opened just a single position this month and hoped to add the other 2 but wanted to remain cautious. We now turn our focus to the April cycle.

February


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
Feb 11, 2016 DIA 147/149 Put 0.19 0.00 10.5% Expired worthless
Feb 10, 2016 IWM 89/91 Put 0.15 0.00 8.1% Expired worthless
The DIA position averaged 10.5%
The IWM position averaged 8.1%

Average return for all positions: 9.3%

SPECIAL NOTE ON THIS MONTH'S TRADE: Another rough cycle as the major averages briefly dipped into correction territory. Since then, the markets have rebounded significantly as fears of a global recession have waned. Oil is still low as it continues to trade near the $30/barrel level.

January


Open Date Underlying Strikes Type Credit Debit Result Trade Notes
Jan 07, 2016 IWM 98/100 Put 0.15 0.62 (25.4%) Closed 98/100 for 0.47 net debit.
The IWM position averaged (25.4%)

Average return for all positions: (25.4%)

SPECIAL NOTE ON THIS MONTH'S TRADE: A horrible end to 2015 as all the major averages closed lower for the year. On top of that, the beginning of 2016 has been brutal. Fears of a recession, Chinese economic slowdown, and cheap oil all took the spotlight. The markets have sold off and as the January cycle came to a close, the selloff had not reversed course. We'll see how things go now that this brutal cycle is behind us.