Let me preface my trading stats for covered call and naked put trades by pointing out that I have been the beneficiary of a strong US equity market since I began posting my trades earlier this year. I am pleased with median annualized returns of 37.4% and 19.5% for my covered call trades and naked put trades respectively.
Could I have achieved better trade results? Given that the equity market has performed so well since I started posting my trades, I could have generated higher covered call returns by selecting strike prices that were a little further out of the money and that is exactly what I have been doing lately. As for the naked put trades, I am comfortable with the strike prices I selected and haven’t made any changes to my strategy.
I have recently added a layer of machine learning analysis to my strategies that I expect to slightly improve my trade performance. We shall see.
| Closed Covered Calls | ||
| Number of Trades | 42 | |
| Average Return | 2.9% | |
| Average Annualized Return | 26.3% | |
| Median Return | 2.8% | |
| Median Annualized Return | 37.4% | |
| Closed Naked Puts | ||
| Number of Trades | 92 | |
| Average Return | 0.3% | |
| Average Annualized Return | 18.6% | |
| Median Return | 0.7% | |
| Median Annualized Return | 19.5% | |
Publishing personal trade stats for all to see is easy when the wind is at your back (i.e. the equity market rises). I know full well that the day will come when it will be difficult to click the “Publish” button and present my trade stats after a difficult trading period.
All the best.
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