Uncovered Options Trading System
Uncovered options trading involves certain margin requirements (contact your broker for details on this info). What may look like a big profit/loss on price of an options contract, may have much smaller numbers when it is tied to an entire margin portfolio. Many traders are going into options market with hope to make a lot of money. This is not about uncovered options. Theoretically, you can make a lot of money in short period of time by buying options, yet, on practice, the odds are high you will loose all you allocated for options trading. With uncovered options, on the other hand, you may have 10-50% stable yearly profit by using the correct strategy.
To better evaluate our trading system we set the calculator below which will help you to evaluate our system in relation to margin requirements. For simplified calculations commissions are not counted and margin is calculated as 25% of the underlying market price + the premium - amount out of the money (please bear in mind that margin requirements may vary from broker to broker). Your broker may have slightly different margin formula therefore our results may not match exactly to your broker's calculators.
The options calculator below calculates yearly returns. To calculate past performance for bigger/smaller periods please use "NOS Trade Calculator"
| Account value as of 01/01/2023 | $50,000 |
| Account value as of 12/31/2023 | $54,417 |
| Profit | +$4,417 |
| Profit (%) | +8.83% |
If a hypothetical trader who has $50,000 account sells SPY options short by following signals generated by our system within the last 2023 months, by this time this trader would have an extra +$4,417 in the account.
See details of the trades below:
| Signal | Number Contracts | Entry Date | Options Price | Sold (short) | Exit Date | Buying Price | Bought (cover) | Account Value | Profit |
| Sell (Short) Puts (SPY,400) | 6 | 10/31/23 09:36 | $2.16 | +$1,296 | 11/01/23 | $1.00 | -$600 | $54,417 | +$4,417 |
| Sell (Short) Puts (SPY,414) | 5 | 10/05/23 15:39 | $2.11 | +$1,055 | 10/06/23 | $1.00 | -$500 | $53,721 | +$3,721 |
| Sell (Short) Puts (SPY,417) | 6 | 08/21/23 11:10 | $2.10 | +$1,260 | 08/23/23 | $1.00 | -$600 | $53,166 | +$3,166 |
| Sell (Short) Puts (SPY,436) | 5 | 07/14/23 14:57 | $2.10 | +$1,050 | 07/25/23 | $1.05 | -$525 | $52,506 | +$2,506 |
| Sell (Short) Puts (SPY,388) | 7 | 04/18/23 10:03 | $1.40 | +$980 | 04/28/23 | $0.70 | -$490 | $51,981 | +$1,981 |
| Sell (Short) Puts (SPY,366) | 7 | 03/17/23 09:30 | $2.83 | +$1,981 | 04/03/23 | $0.30 | -$210 | $51,491 | +$1,491 |
| Sell (Short) Puts (SPY,367) | 7 | 01/12/23 09:43 | $2.00 | +$1,400 | 01/19/23 | $2.40 | -$1,680 | $49,720 | $-280 |
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.