The Stock Index Option Writing Program

AutumnGold: You started trading your Stock Index Option Writing Strategy during the Financial Crisis in November 2008. What is your program’s trading strategy?

Andreas: My Stock Index Option Writing Strategy is proprietary and 100% discretionary. My trading approach and strategy is based on what I have learned and discovered over the past 20 years in the futures industry, and utilizes advanced mathematics and statistical probability models. I generally sell far out of the money options on E-mini S&P 500 futures contracts. Instead of trying to hit “home runs” by writing options with strike prices close to the market, I write options much further away from the market, thus attempting to hit a larger number of “singles” which can add up to attractive returns.

I attempt to sell options with what I believe have the highest probability of expiring worthless based on my analysis. When placing trades, I compute “what if scenarios” of potential moves against my positions. Then using volatility numbers and standard deviation I figure the mathematical probability of an adverse move happening. I select positions that I deem statistically to have a high probability of being successful. The program has averaged approximately 80% winning trades since its inception in 2008.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR MONEY. THERE IS AN UNLIMITED RISK OF LOSS IN SELLING OPTIONS. YOU SHOULD CAREFULLY CONSIDER WHETHER COMMODITY FUTURES AND OPTIONS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.

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