We’re making some changes to our monthly review - hopefully the structure of this new format will make it easier to follow along and compare our strategy with the relevant benchmarks. Going forward, we’ll include the following items in each monthly review: 1) a quick-glance overview of our monthly performance, in the chart at right; 2) a performance comparison of our positions for the month vs. the SPX, DJIA, and RUT, plus BEP, which is an S&P 500 Covered Call Fund. 3) more details about each of our positions, including any comments we may have; 4) links to important (non-trade) articles from the past month, in case you missed any of them.
Performance comparison
Here’s how the major market indexes, the S&P 500 Covered Call Fund (BEP), and the Condor Options trades performed over the past month:
- S&P 500: 2.52%
- Dow Jones Industrials: 1.07%
- Russell 2000: 2.78%
- S&P Covered Call Fund: 7.69%
- Condor Options: 12.62%
- Note: the period measured is from expiration to expiration, rather than from the start of the month.
May Iron Condors
- DIA 116/118/134/136: 30.46% return - This was a no-brainer; we closed out the 188 puts on principle (markets tend to crash down, not up) and let the rest expire worthless.
- DIA 113/115/130/132: (10.56%) return - We closed out this position fairly quickly as the rally gathered steam in order to reduce our overall risk. As part of a larger portfolio, it would have been easier to hold on and make an exit several days later for a small win/breakeven - some readers did just that.
- SPY 128/130/146/148: 17.96% return
May Reading
Here are some posts from the past month that are worth checking out if you didn’t catch them the first time around:
We’re already in two June positions and, if implied volatility picks up next week, may well enter two more. Hopefully this summer will be a bit more lively than usual!
