OZ5 Naked Options Selling System performance sample. The following system sample is based on the stock “MU” or Micron Technology, an “old school” tech stock.
- Lower price, lower capital requirement
- Average ATM weekly option with 5 days left to expiration to sell is .64 at the time of this writing
- A 2 point gain in our favor will reduce our short premium to $.07 excluding time decay
- We play momentum micro swing breaks
- If we get 2 points from the entry trigger we close out the position on this stock for an approximate .57 net on the naked
- We use stop losses set by contingent order or with the option of defining max risk by placing a stop loss on the option itself.
MU | |
SYSTEMOZ5 | |
0.57 | |
0.57 | |
-0.35 | |
0.57 | |
0.14 | |
-0.18 | |
0.57 | |
-0.32 | |
0.57 | |
0.57 | |
0.57 | |
0.39 | |
0.21 | |
0.61 | |
0.57 | |
0.61 | |
0.61 | |
0.23 | |
-0.73 | |
0.61 | |
-0.68 | |
0.61 | |
-0.73 | |
-0.39 | |
0.23 | |
-0.29 | |
-0.29 | |
0.61 | |
0.61 | |
-0.15 | |
0.53 | |
0.34 | |
-0.39 | |
6.4 | 21 Weeks |
0.3 | Per week net |
Now 6.4 options points may seem small but that’s a 19% cash return for 5 months. Annualized that comes out to 15.36 naked options points of MU for a cash 47% Return for the year. Now that’s pretty good, especially for approximately 30 minutes of “work” per week!
$997