In 2014, I set goals for my option journey as such:-
I intent to earn passive income through trading three option period as follow:
- Weekly option : for daily survival (food on table)
- Monthly option : for monthly expenses (utilities, bill .etc)
- Longer option : for higher profit (saving) – Not much success on trading the futures
Weekly and Monthly option system starting to bear fruits but longer options still paying huge tuition fees on testing, experimenting and learning the rope.
I was interested to know whether the SOS monthly option can be applied to weekly. So in Jan 2015, I started testing SOS on weekly option play.
After one year of testing in 2015, below is the result for SOS weekly option.
The average winrate is 90% and is profitable. I let the option expires worthless or start adjusting when tested.
Those in red are losses, blank mean I skip that week and the rest are profitable weeks. Some observation when using SOS on weekly option play:
Observation 1: Even with FOOM options there will be some losing weeks
Observation 2: With proper adjustment strategies, a losing trade can be turned into a winning weeks (eg. wk19 and wk43)
Observation 3: Position sizing if not done properly can cause major losses or three weeks of winning return back to Mr. Market (eg. wk26 and wk46)
Observation 4: The more I practice, the better I become, winrate improve by 4% in second half of the year (1H from 88% to 2H of 92%)
In conclusion, SOS weekly option is doable and had been tested for a year.
I want to give thank to God for HIS provision and optionkaki’s friends journeying together.