2006-2010 Trade Results
(update 2010)


Here is a breakdown of results categorized into futures spreads and option spreads. All trades are from May 2006 onwards and based on our spread and options trading method. The first chart shows current calender year, the following charts show year on year from inception. Scroll down for more details.

Scroll down for more info in our trading style.












Method of calculation
Since Option1 is not a managed fund, results vary from account to account depending on the exact contracts traded relative to account size.

Whenever a new trade is identified , Option1 also recommend an amount to trade. For example, we might say “trade one contract per $25,000 in your account”.
Example: if a trade recommendation returned a profit of $1250, this would equate to a return of 5% on the recommended contract allocation.
The Option1 calculations do allow for slippage on all exits.

The results shown here are based strictly on this recommended contract level. Also the results do not take into account the effect of compounding.“No representation is being made that every subscriber account will or is likely to achieve profits and losses exactly to those shown in the performance table, variations of account size, commissions, deposits, withdrawals, and the number of positions entered relevant to our contract allocation within our trade commentary all impact and vary the outcome from subscriber to subscriber”. Individual results will vary.

Naturally, trading in futures and options involves risk and we recommend you read our disclaimer here and seek independent advice before trading any market.


What is a spread?

In this context, a spread involves buying one instrument and selling another in an effort to make a profit from the difference in prices. Option1 idenyify spreads in options and spreads in futures in order to offer variety and diverse trading potential. Occasionally we will consider straddle’s and outright options positions when there are no potential trades using seasonal futures spreads and option spreads.


Generally speaking our seasonal spreads have a high statistical probability of profit, often over 80%. While this statistic is nothing more than an estimate, it does give subscribers an idea of what to expect. But does not guarantee the outcome.

The majority of option spread trades are in the S&P500 Index, and Metals. We will however look at other markets such as Coffee, Crude Oil, Natural Gas, and more.

Goal:
We aim to provide spread oppertunities that have a potential profit outcome of about 2-3% per 4-6 weeks. This assumes positions do not need to be adjusted or closed given adverse markets movements.

Strategy:

Vertical credit spreads, ratio spread and calendar spreads. Most of these strategies have a limited risk and limited reward profile. The risk and reward profile for each and every spread is defined in the update. Strangles these positions are deep out of the money and require a defined exit stratergy should the position come under pressure

Futures spreads

Here we offer spread research in futures markets, not options. There are intra-commodity or calendar style spreads where you buy one month and sell another in the same commodity (e.g. buy August Soybeans, sell November Soybeans). There are also inter-commodity spreads where you but one commodity and sell a related commodity (e.g. buy December Live Cattle, sell December Lean Hogs).

Goal:

We aim to provide spread oppertunities that have a potential profit outcome of about 2-3% per 4-6 weeks. This assumes positions do not need to be adjusted or closed given adverse markets movements.


Strategies:
Intra-commodity and inter-commodity futures spreads.

Ongoing advice:

The Option1 member’s website is updated every day listing the performance of all current spreads and related market moving news. Subscribers also receive and follow-up update when required.

Looking forward

The “OUTLOOK” section is updated monthly with the idea of letting you know what to expect in the coming weeks. Here we provide a commentary on potential upcoming seasonal ideas.


Simplicity of trades
You can think of Option1 as a research house. Some ideas may be complex and good trading opportunities aren’t always easy to find. But it’s our job to find them. We search for the trades and present them to you in a simple uncomplicated format.

All the information is spelled out for all subscribers to read and decide whether or not to follow a position. To prove the point, here is some recent feedback:

“Congratulations on a product, which to many sounds too complicated, yet you have made it extremely User Friendly and understandable.”

“I have just logged in (for the first time) looked around and I have to say I am very impressed with your whole set up. Everything is straightforward without lacking in information. Well done.”

“I am very happy with Option 1, I have purchased a number of trading systems but the Option 1 results and the daily updates are the best service I have experienced to date. It is like trading with your own personal coach!”

When we hear things like that we know we are doing our job…


Naturally options and futures trading involves risk and past performance is no guarantee of future results. See the disclaimer below for more information.