|Recommended Starting Balance||$20,000.00
|Cumulative Net Profit
|Maximum Drawdown (-30.84%)
|Best Year 2011 +144.34%||$28,867.15|
|Worst Year 2018 +39.97%||$7,993.74|
|2013-2020 Average +88.05%||$17,610.83|
Performance is based on trading one $20,000 unit, never adding units and withdrawing all net profits annually. The GC-CD program uses leverage, has a realistic risk factor of $10,000 per unit, if you’re not in a position to comfortably assume this risk you should not participate in this program.
2) About this program
This program writes credit spreads and/or volatility spreads in options with expirations of 1 day to 3 weeks to collect time premium and buys debit spreads with 1 to 6 months to expiration to hedge risk.
Example, if the market is trading at $1,571.20, we sell a $1,570 at the money put collecting $9.70 in time premium and buy two $1,520 out of the money puts at $0.50 paying out a total of $1.00, net time premium collected $8.70, value $870.00, expiration 4 days.
On this credit spread we’re collecting $178.50 per day net of all bid/ask spreads and fees.
We also own two $1520 out of the money puts for every $1570 at the money put we sold, in the event of a hard sell off we have the opportunity to make money.
If the up trend in gold continues or the market stays the same the weekly options will expire worthless and we keep the net credit after all bid/ask spreads and fees of $714.00 then write another 1 X 2 credit spread with a 1 week expiration using the same procedure.
On the credit spreads we get paid $178.50 per day
To further hedge the position we buy a debit spread with an expiration of 1 to 6 months, for example if the the June contact is trading at $1,581.50, we buy one $1,575 put at the money expiring in 136 days paying out $37.30 and sell one $1,485 out of the money put (90.00 lower) collecting $7.30 in premium. Our cost on the hedge is $3,156.00 for the 136 day period. We’ve also written the put 90.00 lower creating an opportunity to make money if a hard sell off occurred.
On the hedge we are paying $23.21 per day
Our risk is the maximum of the premium collected on the $1,570 – 1520 X 2 credit spread expiring in 4 days ($714.00) less what we paid out for the 1575 – 1485 debit spread (-$3,156.00) expiring in 136 days or -$2,442.00 net of all bid/ask spreads & fees.
The objective is to keep rewriting the options that expire weekly collecting an average net of $714 per week for the next 18 weeks (+$11,022.00) while maintaining the debit spread we purchased expiring in 136 days (-$3,156.00) or if the market makes a hard move lower to capture a piece of this move. During the 136 day period we will likely have to adjust the debit spread hedge but we’re always collecting more time premium daily than paying out.
4) Online reviews
If you’d like to learn exactly how this program works contact me, using this spreadsheet I’ll walk you through how we generate and maintain trades, when we’re done you’ll be able to verify past performance, duplicate as they occur.
|BC Option Quotes|
|CME Option Option Quotes|
3) About Automated Trading Accounts (ATAs)
Automated Trading Accounts (ATA)
The Fee Structure For This Program
Defining Overall Risk For Your Account
How Balances Are Guaranteed Plus or Minus Trading
How To Open An Account
Educational Videos & Links
Educational Videos & Resources
|4.01||Futures General Information|
|4.02||Options General Information|
|4.04||Stock Index Futures|
|4.05||Interest Rate Futures|
|4.08||CME Learning Center|
|4.14||Monthly FX Review|
Contact me with any questions
Peter Knight Advisor
If you have questions contact me.