April 2020 Monthly Options Strategy Analysis

Key Stats

Analysis

Our analysis of April for 2020 covers 142 trades over the past 19 years. This month proves to be much improved over March with respect to a single key metric. Compared to last month, April boasts a winning history of 86%.

What is great about this month as a whole, is how favorably it compares to the strategy in general. April is a "standard" month for the monthly options strategy. View the risk v. reward chart below to see this point visually. This means we, typically speaking, know what to expect in the long run for this month: Eight times out of ten it will produce winning trades. The history plays out the same story in past trades with the vast majority of results being positive with only a few losing trades sprinkled in.

Risk vs Reward

Successful Picks

Trade Recommendations

We are still dealing with the fallout of COVID-19 which continues to have a major impact on the market. The biggest issue at the moment is the abnormally high VIX which is just now getting to a point to allow profit on options without major swings in the market. Conservative allocations remain the best way to mitigate risk at such a moment.

Target Profit Recommendation

For April, 2020 we recommend target profits in the 20% - 35% range.