Delta-Neutral Income
If you’re looking to generate income from your options trading, our Delta-Neutral Income service is the perfect way to elevate your trading! Delta-Neutral trading is a popular approach for many traders prioritize risk management as highly as maximizing their returns. These strategies allow traders to reduce the impact of market volatility and create a profit opportunity no matter the direction of the underlying security or broader market. The service employs a broad range of option strategies, including Calendars, Diagonals, Butterflies Condors and Iron Condors.
The Delta-Neutral Strategy
If you’re looking to generate income from your options trading, our Delta-Neutral Trader service is the perfect way to elevate your trading! Delta-Neutral trading is a popular approach for many traders prioritize risk management as highly as maximizing their returns. These strategies allow traders to reduce the impact of market volatility and create a profit opportunity no matter the direction of the underlying security or broader market. The service employs a broad range of option strategies, including Calendars, Diagonals, Butterflies Condors and Iron Condors.
Delta-Neutral Income features
Overview
Strategy commenced
– January 2023
Primary option strategies
– Calendars
– Diagonals
– Butterflies
– Condors
– Iron Condors
Capital Required
– Suggested $10,000
– Minimum $5,000
Trade Frequency & Duration
– 10-12 trades per month
– Avg. trade duration 20 days
– Maximum 12 open positions
How does the strategy perform?
Delta Neutral Income is a relatively new service and so our hypothetical track record of performance is still building. However, Jeff has been tracking performance of these strategies over the past several years and his hypothetical track record is provided below as a reference.
What is the typical duration of a trade?
The typical duration of a trade in the Delta-Neutral Income service approximately 30-40 days. This is because we are selling the short term options to collect the premium typically with the next month from the date the trade is entered.
How are trades selected?
Delta-Neutral Income 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.
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.
Delta-Neutral Income Performance
Summary Statistics
Figures Assume $5,000 Starting Capital.
Results as at: 31 October 2023. How we report performance >
Performance Summary
| Period | Total Trades | Winning Trades | Win Rate % | Cumulative Return | Monthly CAGR % | Avg. Trade Size | Avg. Days per Trade | Avg. P/L per Trade | Win:Loss Ratio | Max Draw- down | Max. Consec. Winners | Max. Consec. lossers |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| All | 77 | 49 | 64% | 60% | 4.5% | $265 | 26.1 | 15% | 1:1 | -13.7% | 7 | -3 |
| 2023 | 77 | 49 | 64% | 60% | 4.8% | $265 | 26.1 | 15% | 1:1 | -13.7% | 7 | -3 |
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.
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 5.2% | 5.8% | 7.4% | 8.4% | 8.8% | -7.6% | 8.6% | -1.0% | 5.8% | 9.3% | 9.4% | 0.0% |
Monthly Trade Returns
Returns based on initial entry debit or net initial margin requirement if a credit position.
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 44.4% | 29.6% | 25.8% | 20.0% | 11.4% | -31.9% | 23.4% | -0.9% | 14.4% | 15.2% | 58.6% | 0.0% |
