Delta-Neutral Breakout

If you’re keen to leverage the volatility of earnings announcements, Jeff’s Delta-Neutral Breakout service is for you. Using straddles and strangles, this strategy allows traders to profit from significant stock moves without predicting the direction. Whether a stock surges or drops post-earnings, you’re positioned to benefit. Our service zeroes in on stocks known for notable earnings-driven shifts, letting you harness volatility without the guesswork of the stock’s next move.

Delta-Neutral Breakout

If you’re keen to leverage the volatility of earnings announcements, Jeff’s Delta-Neutral Breakout service is for you. Using straddles and strangles, this strategy allows traders to profit from significant stock moves without predicting the direction. Whether a stock surges or drops post-earnings, you’re positioned to benefit. Our service zeroes in on stocks known for notable earnings-driven shifts, letting you harness volatility without the guesswork of the stock’s next move.

Delta-neutral breakout features

Overview

Strategy commenced

– April 2023

Primary option strategies

– Straddles
– Strangles

Capital Required

– Suggested $10,000
– Minimum $5,000

Trade Frequency & Duration

– 10-12 trades per month
– Avg. trade duration 10 days
– Maximum 12 open positions

How does the strategy perform?

Delta-Neutral Breakout takes advantage of company earnings, and therefore the performance of the strategy follows the seasonal nature of earnings announcements. We’ve been officially tracking the performance of the strategy since April 2023, and you can see the results below.

What is the duration of an Options trade.

What is the typical duration of a trade?

Trades in the Delta neutral breakout service usually last about 10 days. We initiate trades before earnings and remove them if there’s movement prior to the release. If no movement occurs, we hold for up to 2 weeks.

 

How are trades selected?

Delta-Neutral Breakout selects trade alerts through the use of proprietary scans to identify potential trade candidates every day.

The team at EWO then reviews these candidates manually including a review of available options to construct options positions and issue alerts.

How much capital do I need to start trading.

How will I
manage risk?

Risk management is our primary consideration when it comes to our trade alerts service and educating you on our trading strategies.

In general, our risk management guidelines recommend that you risk no more than 5% of available trading capital in any position. We therefore typically size trades at around $500, although with this strategy, there are occasions where the entry cost of the trade may be substantially more.

How much capital do I need to start trading.

How are trades selected?

Delta-Neutral Trader selects trade alerts through the use of proprietary scans to identify potential trade candidates every day.

The team at EWO then reviews these candidates manually including a review of available options to construct options positions and issue alerts.

How will I
manage risk?

Risk management is our primary consideration when it comes to our trade alerts service and educating you on our trading strategies.

In general, our risk management guidelines recommend that you risk no more than 5% of available trading capital in any position. We therefore never exceed a position value of $500 per trade for our premium services.

See the delta-neutral strategy in action

Summary Statistics

Figures Assume $15,000 Starting Capital.

0%
Avg. Trades ROI
0%
Winning Trades
0%
Cumulative Account ROI
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Avg. Yearly Account ROI

Results as at: 31 December 2023. How we report performance >

Performance Summary
PeriodTotal TradesWinning TradesWin Rate %Cumulative ReturnMonthly CAGR %Avg. Trade SizeAvg. Days per TradeAvg. P/L per TradeWin:Loss RatioMax Draw-
down
Max.
Consec. Winners
Max.
Consec. lossers
All684871%136%10.5%$7983.938%2:1-10.6%10-2
2023684871%136%10.5%$7983.938%2:1-10.6%10-2
20230000%0.0%000%No losses0.0%00
Monthly Portfolio Returns

Non-compounded returns based on starting capital, reset each year. Results attributed to the month and year the trade was marked as closed.

YearJanFebMarAprMayJunJulAugSepOctNovDec
20230.0%0.0%0.0%3.4%5.8%14.2%23.4%48.2%7.3%6.7%21.7%5.6%
20240.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Monthly Trade Returns

Returns based on initial entry debit or net initial margin requirement if a credit position.

YearJanFebMarAprMayJunJulAugSepOctNovDec
2023 0.0% 0.0% 0.0%92.7%45.0%235.0%65.9%49.6%45.6%28.7%14.1%0.1%
2024 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

In order to access individual trade details in the format shown here please login to the EWO platform. Access for historical trades is free.