Track Record

Track Record Summary & Our Standard of Performance Reporting

Every day, we publish actionable trade ideas that subscribers may consider for their portfolios. Our intent with these ideas is to get our readers thinking. One should not take our ideas blindly. We intend these ideas to be our readers’ first step in the investment process. At the same time, our followers need to know how we are doing. You have come to the wrong place if you seek a service that never has a losing trade. We bring discipline and diligence to our proprietary investment process. We only pursue those ideas where we believe the odds are in our favor.

Having the odds in our favor does not guarantee the trade will be a winner; On the contrary, there is always a chance a trade will not work out. Over time, however, our method of finding inexpensive investments with technical setups and sentiment in our favor is our foundation for a value-added contribution to our readers, which should generate superior risk-adjusted returns over time. Our results summarized below support that proposition.

We present our ideas here at TheOptionsEdge.Com, identifying this portfolio as the TOE Trades. In 2016 and 2017, we wrote for Action Alerts Options at TheStreet.com. We identify this portfolio as the AAO Trades. The following table summarizes the performance of all our ideas since we started publishing our thoughts in 2016. We have broken up the analysis into three sub-components: (1) Trades that are still open, (2) Trades closed so far in 2019, (3) Trades closed so far in 2018, and (4) those trades closed in 2017 (All trade suggestions for the Action Alerts Options (AAO) Service at TheStreet.Com are now closed.)

Our crypto portfolio has started well After a brutal sell-off, crypto investors were hurt badly, particularly those who invested in the ICO market Too many people sold tokens in companies that were not ready to deliver a return to speculators Currently, we are focusing on the blue chips of the crypto market There are currently nine issues in the portfolio, and we will be expanding our exposure to additional coins and tokens if and when we think the time is right Since we started discussing crypto opportunities, our suggestions have been up 69% But on an annualized basis, we are up 110% 2020 we had a big comeback year as our suggestions lost 40.8% on an absolute basis in 2019 We are having a repeat performance in 2022 Ouch (These numbers are not audited either.) 2020 saw the performance rebound at the of the year, which gave us a return of 138.6% That rally continued for most of 2021, delivering an additional return of 160.1% Towards the end of the year, the price of crypto weakened, and that weakness continued into 2022 The idealized crypto portfolio is down 62.5% so far in 2022 We have been asked why we discuss cryptocurrencies and tokens The answer is simple Crypto will change the world of finance It will change the monopolistic nature of money and how business is conducted The result is a world where the average bloke gets an even break, and they may even be able to become financially independent If we can help the process along, we want to do so.

If we are right, people who invest in the right coins and tokens will increase their wealth substantially, But let’s be fair. The outcome is binomial. The ultimate payoff will be huge or a complete loss. Invest at your own risk.

Method of Computation

The return computation as a “Percent of the Underlying” is relatively straightforward. We use the formula:

Return as a Percent of the Underlying = (Return in Dollars) / Stock Price.

To compute the average, we weighted the returns by the stock price. This way, we give more significant weight to 100 shares of a $50 than 100 shares of a $20 stock. To compute the annualized return for each trade suggestion, we divide the return by the trade duration. The annualized average is the returns weighted by the stock price and the trade duration.

The return computation as a “Percent of Capital at Risk” was more complicated. We use the following formulas:

Spread: Return as a Percent of Capital At Risk = (Returning Dollars) / (Difference between Strikes – Credit Generated)

Bullish Risk Reversal: Return as a Percent of Capital At Risk = (Return in Dollars) / (Put Strike – Credit Generated)

To compute the average, we weighted the returns by the capital at risk and divided them by the trade duration. The annualized average is the returns weighted by the capital at risk and the trade duration.

You probably want to know more about our trades, mainly if you evaluate our service for the first time. The following links will take you to tables that summarize our discussed transactions. Those tables will have the date of trade initiation, trade structure, and the prices quoted in the marketplace at the post (usually the closing price the day before the article is posted). This leads us to profit on a trade-by-trade basis. The performance of the closed trades is available for everyone to evaluate. The summary of open trades is strictly reserved for our subscribers.