August update on project to combine Technical Analysis and Options strategies
- Ranjeet M CFTe
- Aug 25, 2021
- 1 min read
13 Option strategies expired on 2oth August 2021. Of these 11 were profitable (84%) with an average gain of 3.6% and 2 were unprofitable with an average loss of -1.59%
The largest gain came from Microsoft (9.49%), the strategy was to participate on the upside with low downside risk. In this particular expiry, there were large moves by KWEB (-34%) and Nike (+30%). The Gold ETF was a downer with a flat performance vs expectation of rise in prices.
From a risk management perspective: liquidity is important (Rolls Royce was successful however lacked sufficient liquidity to take a large position) and avoid selling uncovered options since volatility in specific stocks could force stop losses or delivery of stocks at higher than current market prices.
