November 2020 Monthly Options Trade Analysis

Analysis

Our analysis for November shows very similar results to the previous month, where the Monthly Options trading strategy underperforms vs. the average for all months. In spite of this, the key statistics remain quite favorable with an 8 out of 10 winning history and an average return 21% higher than the top end of our target profit range of 50%.

A review of the trades placed in previous Novembers show a brutal 2018 and mostly losers a decade prior in 2008. Other years produced predominantly positive returns. Unlike most other months, there are no consistently winning picks, only QQQ has a better than 9 out of 10 wins in past years.

Risk vs Reward

Successful Picks

Trade Recommendations

Just as the month prior, we are seeing mixed results. Past years have produced statistics mostly in-line with our overall expectations for the Monthly Options strategy. With an 80% winning history, the odds are obviously favorable, however, the average return is decidedly lower than the triple digits we see with the strategy in other months. This is clearly indicating to adhere to our standard target range. Additionally, the analysis suggests diversity amongst trades vs betting on a single option such as pairing QQQ with other pick(s).

Target Profit Recommendations

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