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Quant Trader
Expert-Level Options for Sophisticated Traders
Issues
Not much has changed in the past week. We currently have two open positions: a bear call spread in SPY and an IWM iron condor. Both are due to expire December 16, 2022, and both are currently in a profitable state. My hope is that we can take both of our trades off this week for nice profits.

I also plan on adding another bear call spread to the mix this week, this time for the January expiration cycle. And if we see a decent pullback this week, I’ll follow that trade with a bull put spread in January.
We currently have two open positions: a bear call spread in SPY and an IWM iron condor. Both are due to expire December 16, 2022 and both are currently in a profitable state. So there really isn’t too much to say at the moment. I do plan on adding a bull put spread to the portfolio, mostly to even out the deltas a bit, but as always, I’m not going to force it.
We added a bear call spread last week in SPY and plan to add an iron condor and bull put spread, if the market cooperates, this week. I’m still hopeful to sell premium for the December 16 expiration cycle, but have no issue kicking it out a week or two if it makes sense. The most important part is that we want the deltas of our portfolio to be balanced so we aren’t leaning too far in one direction.

Last week, prior to the Fed announcement, I decided to close out our two remaining positions for the November expiration cycle. While, in hindsight, holding on through the event would have been the best path for maximizing profits, we did manage to lock in two small gains.

The returns makes it 14 profitable trades out of 15 for a cumulative return of 71.3% since starting Quant Trader back in the beginning of June. Not bad given the wildly volatile market we’ve experienced over the past five months.

This week we will ramp back up opening new positions, this time for the December expiration cycle. I want to stay flat until the elections are over but intend on adding at least three new positions over the next week or so. Stay tuned!
We currently have two positions open, both of which have a probability of success higher than 84%.


With December expiration quickly approaching (45 days) I plan on adding several new positions this week. We want to have, at the minimum, one bullish, bearish and neutral trade for each expiration cycle and December is no different.

I’m going to keep it short today as we are coming off the end of the October expiration cycle. We locked in another winning trade last week to make it 12 out of 13 winning trades for a win ratio of 92.3%. Moreover, our three open trades are all in profitable territory and there is a good chance I will close out a few, if not all, over the coming days. If I do close out all three trades, expect to see a few opening trades going out roughly 30-45 days. Stay tuned!

I’m going to keep the intro short today as we have an upcoming subscriber-only webinar this week when I plan to touch on the current state of the market, our current trades, and some potential upcoming trades. If you wish to attend or receive the recording of the webinar, please click here to sign up.
Nothing new here. The song remains the same; the market continues to suffer. But, as I stated last week, while most portfolios across the investment universe have taken a turn for the worse, our Quant Trader portfolio continues to demonstrate why it’s a necessity to have exposure to options selling strategies.

Our win ratio stands at 90.9% and our cumulative return stands at over 40%.



We now have one open position for the October expiration cycle, our IWM iron condor, and three new positions due to expire November 18, 2022. Of course, I have no intent of holding on for that long and will gladly take profits early if possible.

The market continues to suffer mightily. And while most portfolios across the investment universe have followed suit, our Quant Trader portfolio continues to display why it’s a necessity to have exposure to options selling strategies.

Our win ratio stands at 90.9% and our cumulative return stands at over 40%.



We still have one open position for the October expiration cycle, our IWM iron condor, and if the Russell 2000 (IWM) can manage to climb higher this week we should have the opportunity to tack on even more gains. Moreover, there are 47 days left in the November expiration cycle, so I intend to open a few positions for some exposure, but I want to maintain a conservative stance.

We’ve had a good start, with the Quant Trader service outperforming the market by a significant margin. Risk management has been a huge part of our success, mostly by locking in profits when we can lock in 50% to 75% of the original premium sold.

As a result, I decided on Friday (per the trade alert) to set a hard stop-loss for our IWM iron condor at $2.00. This will allow us to take all risk off the table and maintain overall profits in the portfolio, which speaks to the power of our approach as it has been a challenging environment for most investment strategies. Hopefully, the oversold state of IWM will lead to a push higher, giving us the ability to take a potential profit, but if not, we want to be fully prepared by taking off our trade, maintaining overall profits and patiently waiting for more opportunities to arise.

We added another position to the mix, an iron condor in IWM, last week. And shortly after we added our range-bound iron condor, we decided to lock in profits on our SPY bear call spread, marking 10 out of 11 profitable trades since we initiated Quant Trader. Moreover, our holding period is only 17 days, far less (roughly 66% less) than if we were holding our trades through expiration.

My goal this week, if the market allows, is to add another bear call spread and bull put spread to the portfolio. My hope is that we can squeeze a bit more premium out of the October 21 expiration cycle, but we will have to see what is being offered.

Within the last two weeks we’ve been able to lock in four straight winning trades which has increased our win ratio to 90% (9 out 10 winning trades). This should be of no surprise given we’ve been placing trades with a better than 85% probability of success. Hopefully the numbers will continue to play out as the probabilities intend, but sequence risk will rear its head from time to time as we continue to pile on the trades. So with that in mind, keep your emotions in check, stay disciplined in your approach and keep your position size at reasonable levels. I’ll discuss this further, in addition to our current positions, trade ideas and more in our upcoming monthly webinar.
Updates
Cabot Options Institute Quant Trader is focused exclusively on creating consistent returns using high-probability options strategies including bear call spreads, bull put spreads, iron condors and more. Whether you have questions about the strategies, or even about setting up your account, or how to make your own trades, Andy will answer all of your questions
Cabot Options Institute Quant Trader is focused exclusively on creating consistent returns using high-probability options strategies including bear call spreads, bull put spreads, iron condors and more. Whether you have questions about the strategies, or even about setting up your account, or how to make your own trades, Andy will answer all of your questions
Alerts
Okay, it’s time to ramp things back up again. I want to sell premium for the January expiration cycle and I’m going to start with a bear call spread and hopefully, over the next few trading days, add an iron condor and bull put spread in a few other of the major index ETFs.
With 18 days left until expiration and our IWM iron condor worth $0.24, I want to go ahead and lock in some nice profits. We sold the iron condor for $0.75 just 13 days ago and are now able to lock in over 10% on the trade. If you choose to hold on to the trade, please be aware of the risks.
With the Russell 2000 ETF (IWM) trading for 184.87, I want to place a short-term iron condor going out 30 days. My intent is to take off the trade well before the December 16, 2022, expiration date.
Given that we are in profitable territory with 16 days left until November expiration, I’ve decided to take off all exposure and reestablish trades for December expiration after the Fed event today.
SPY has moved significantly higher over the past few weeks. As a result, I’ve decided to take my SPY November 18, 2022 325/320 bear call spread off the table for a profit. Some may choose to hold on to the trade, just remember, we still have 24 days left until expiration and lots can happen over that timeframe.
Today I want to add some bearish exposure to mix for the November expiration cycle. We currently have an iron condor and a bull put spread on for November. Now it’s time to balance out our deltas by adding a bear call spread.
We still have an IWM iron condor open for the October 21, 2022 expiration cycle that currently stands in profitable territory, but given that we are only 45 days away from the November 18, 2022 expiration cycle I want to begin the process of selling more premium.
Today, given the extreme oversold readings we are coming off of from last week, I’m going to open a position in the S&P 500 ETF (SPY), more specifically a bull put spread. I’m giving myself over a 10% margin of error on the trade. I also intend on adding several more positions for the November expiration cycle over the coming days.
With the market pulling back again today, our IWM iron condor is nearing our short put strike of 163. We’ve had a good start, with the Quant Trader service outperforming the market by a significant margin.
We placed our SPY trade on September 9th for $0.75, now it stands at $0.25 with 36 days left until expiration.
With the Russell 2000 ETF (IWM) trading for 183.51, I want to place a short-term iron condor going out 38 days. My intent is to take off the trade well before the October 21, 2022, expiration date.
We just placed our QQQ bull put spread two days ago, but with 42 days left until expiration and the ability to lock in over 50% of the original premium sold I intend on taking off the trade and establishing a few new trades over the coming days, possibly even later today.
Portfolios
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
Strategy