Going live with the Dynamic Covered Strangle plan this week, just in time for volatility's return!

Volatility in the S&P Futures market returned this week with a vengeance:

This means that the options on this futures product (/ES, the "e-mini" S&P futures) pay very much more than they did when the market was at record highs.

For example, selling a ".30 delta" (3190 put, 3275 call) expiring in 8 days returns $1875 ($1868 after commissions.) Assuming we have to do our "cover" even 3 times over the week, losing one tick ($12.50) plus commissions ($5.50) each time and we wait until we have all but the last 15% of the credit, that makes us:

$1868
- 3x $18
- 0.15 * $1868 =

$1520 the first week.

Then say volatility declines by 10% for the next week and stays flat the final 2 weeks. So we'd get

$1520 first week
$1368 2nd week
$1368 3rd week
$1368 4th week

Total $5624 ... starting on a $12500 account, which is the approximate value of the one we have going live next week, that's +44% for the month.

Unbelievable? No; I'll start proving it this coming week.

I'm collecting email addresses to send out real results ... send an email to info@intuitivecapitalmgmt.com and I'll add yours to my list.

More next week, and expect an email report too.