Market Measures

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Where Profit Meets Success

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

A high probability strategy is one thing, but one that has a high success rate AND profitable long-run returns is another! Today, we test out this theory in an attempt to show where certain options strategies might marry success with profits.

STUDY

The strategy at the center of today’s debate is the Strangle in the S&P 500. We look at the same setup for the Strangle across four different timeframes: 9 days, 30 days, 90 days, and 225 days. This is done to find where the best combination of win rate and average profits has been historically.

RESULTS

We found that while the strategy was both profitable and successful across all periods the one we find most attractive is the 30-day option. This was our conclusion because we thought this timeframe showed the greatest profits per percentage points in the success rate. Check out the above segment to find out where we think profits meet success.

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