May 2020 Monthly Options Strategy

Analysis

We have analyzed 144 option trades executed in May through 2002 for the Monthly Options strategy. Per the historical data, this month has performed exceptionally well in past years. A review of the trade history shows primarily winning results with a few loosing trades sprinkled throughout. Most recently, 2019 appears to have been one of the more challenging cycles (mixed winners/losers and lower than normal returns).

Compared to other months, options trades for May have outperformed the strategy as a whole across all returns (see chart below). Unsurprisingly, this translates to a higher than average winning history and return with the later a full 74% above the upper end of our target profit range.

Risk vs Reward

Successful Picks

Trade Recommendations

The market remains abnormally volatile as it continues to settle post COVID, post stimulus. For the foreseeable future this is the new norm.

Businesses across many states are beginning to come online after a long hiatus. It is critical to realize the context of this recovery with respect to the overall business environment before COVID. That environment remains unchanged.

Target Profit Recommendations

We recommend maintaining our standard target profit rate of 30% - 50% for this month.