January 2021 Monthly Options Analysis

Analysis

We start this new year with a somewhat challenging month for the Monthly Options strategy. On average, our strategy has underperformed in the month of January. This is best visualized in our risk vs. reward chart below which shows the average winning history for all returns in January at least 10% lower than than the strategy overall. This isn't to say the month is a loss, as it has produced significant winners in the past and even boasts a very strong winning streak since 2018. AAPL, GOOG, and WYNN all appear to be strong recommendations when suggested with QQQ being a rare miss for the Monthly Options in January.

Risk vs Reward

Successful Picks

Trade Recommendations

January has had brutal months in the past which we have steered away from in more recent years. Still, the data is the best indicator of what can happen which means this month is best traded lightly. Manage your exposure accordingly with allocations and take profit when it becomes available. If January continues down this path, we will adjust our guidance accordingly in years to come.

Target Profit Recommendations

Take profits as they are available at or near 30%. If you pursue higher gains do so with a portion of your allocation by averaging out of your positions.