Our personal goal is to reach 5% return each month. In order to achieve this, based on our philosophy, we will be doing the following:
• On every trade we place, we will be using Options Spreads Strategy that has a Probability of Success of 60-80%.
• We base our strategy on Implied Volatility. That is, when the Implied Volatility is high, we sell options and when the Implied Volatility is low, we will buy options.
• We always look at the Return on Capital and make sure that, for every Option Spread Strategy and Option Spread Positions, we are able to achieve anywhere from 20-51% return on the Capital.
• We also look at Liquidity and underlying Stock volume.
• We constantly seek Cost Basis Reduction, not only in our own account, but we also send alert SMS messages to all our users on how to hedge their positions.
• We seek 67% winners, meaning that for every two winners, we are accounting for one losing trade.
• As long as we keep the amount of winners equal to the amount of the losing trade, we can consistently grow our portfolio roughly anywhere between 3-5%. We follow Statistical Analysis by trading small and at least once a day. As long as we follow the Probability Statistics and structure our trade to have 60-80% Probability of Success, that is One Standard Deviation move, then we are confident of being successful 67-70% of the time.