Aug 2017 realised return = 14%
Want to learn or improve your derivatives trading?
iInvest Traders Circle is the next step in becoming a successful, active trader to help improve returns through options trading and other derivatives products under the expert guidance of the iInvest trading team.
The traders at iInvest have been actively trading proven equity and options strategies with success and are now ready to expand the circle. Below is a recent case study highlighting the results of one of our recent strategies. Joining the iInvest Traders Circle is free and will give you access to our trading ideas, events, stock recommendations, market comments and positions tailored to your risk profile.
*Derivatives trading is not suitable to all investors. Prior to taking any action or making any investment decision based on the information contained in this notice, you should gain professional financial advice.
Case Study | XJO Index income strategy (STRANGLE)
From January 2013 the Index has averaged a range of 313 points per month. Our strategy takes advantage of the time value of out of the money options usually in a 400 – 500 point range.
Selling a call 250 points above the market price and a put 250 points below the market price creates our range of return. An expiry within this range allows us to keep all premium received when the index finishes in this range.
The strategy can be tailored to suit different risk profiles.
Our example has been trading 5 XJO contracts utilising an average of $16,000 of margin.
Entering the strategy is market dependant – meaning relative to where and how the index has traded recently it may be a great time to open the strangle or may be worth waiting. We try and utilise the time value of options so entering the trade towards the start of the month or the end of the previous month is ideal.
The strategy has been very successful, the example below is based on an initial investment of $20,000:
|XJO strangle strategy|
|Month||Range of return||Premium||Return|
|Aug-15||5000 – 5500||$3,000.00||15.00%|
|Sep-15||4900 – 5300||$1,150.00||6.00%|
|Oct-15||4950 – 5400||$4,450.00||22.00%|
|Nov-15||4800 – 5300||$3,900.00||20.00%|
|Dec-15||4800 – 5600||$1,800.00||9.00%|
|Jan-16||4700 – 5300||$2,600.00||13.00%|
|Feb-16||4600 – 5200||$2,200.00||11.00%|
|Mar-16||4450 – 5100||-$1,400.00||-7.00%|
|Apr-16||4900 – 5350||$2,550.00||13.00%|
|May-16||4800 – 5300||-$900.00||-5.00%|
|Jun-16||5050 – 5400||$4,900.00||25.00%|
|Jul-16||5000 – 5500||$3,150.00||15.75%|
|Aug-16||5300 – 5600||$2,800.00||14.00%|
|Sep-16||5250 – 5650||-$700.00||-3.50%|
|Oct-16||5050 – 5500||$2,800.00||14.00%|
|Nov-16||5200 – 5500||$900.00||4.50%|
*Past performance is no guarantee of future performance. This information is for general information only, and does not take into account your personal circumstances, investment objectives, financial situation or needs.
Traders Circle – Our Options Strategy Vs Alternatives
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Please complete the form below for your Free registration to our next Trader’s Circle event
Tell us about you..
New to investing
You’ve been working hard and adding to your savings account, but you now want your money to work harder for you..and so you should!
Managing an existing portfolio
You’ve made some gains (and perhaps some losses) and want access to a team of advisors to ensure you’ve got the right advice to help maximise your yields.
Retired or getting close!
Industry Super Fund or SMSF – what’s the best option for you? You want to know the facts and weigh up your options to ensure you’re getting the most from your investments.
If any of the above sounds like you – then you’re in the right place. To discuss your options and the investment vehicles available to you – get in touch, we’d love to hear from you!
How can we help you achieve better returns?
We specialise in a number of financial products and offerings, including:
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What our clients are saying
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S Krause, July 2015
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Vicki Hood, July 2015
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Blake Wood, NSW, August 2013
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Graham Chee, Managing Director, Global Mutual Funds, NSW, August 2013
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G Downing, QLD, September 2013.
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James Longfield, July 2015.
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Gil Richards, July 2015.
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David O’Halloran, NSW, August 2013
“To Whom it may concern- I have been using Haydn, Georgia and team for more than ten years and of the approximately six other brokers I have used, have found them and now iInvest Securities Pty Ltd to be the most consistently superior. The trading execution is spot on and back up position and financial statements supplied has created an alliance which has assisted me in becoming a fully committed, experienced and very profitable investor day trader.”
Paul G, VIC, August 2013
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Chris Sharpley, QLD, September 2013.