January 2024 Monthly Options Analysis

[vc_row][vc_column][vc_empty_space height="16px"][/vc_column][/vc_row][vc_row][vc_column offset="vc_col-lg-1/5 vc_col-xs-12"][vc_custom_heading text="Key Stats" use_theme_fonts="yes"][/vc_column][vc_column width="1/4" el_class="text-left" offset="vc_col-lg-1/5 vc_col-xs-6"][vc_column_text el_class="amount" css=".vc_custom_1705071925936{margin-bottom: 0px !important;}"]

162

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Total
trades

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119

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Winning
trades

[/vc_column_text][/vc_column][vc_column width="1/4" offset="vc_col-lg-1/5 vc_col-xs-6"][vc_column_text el_class="amount" css=".vc_custom_1705071940863{margin-bottom: 0px !important;}"]

73^%

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Winning
history

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66^%

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Average
return

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Ranking vs Overall

[/vc_column_text][vc_column_text]Last place for both metrics vs. strategy overall.[/vc_column_text][/vc_column][vc_column width="3/4"][vc_single_image image="8479" img_size="full" alignment="center"][vc_single_image image="8480" img_size="full" alignment="center"][/vc_column][/vc_row][vc_row][vc_column width="1/4"][vc_column_text]

Risk vs Reward

[/vc_column_text][vc_column_text]Vastly underperforms.[/vc_column_text][/vc_column][vc_column width="3/4"][vc_single_image image="8481" img_size="full" alignment="center"][/vc_column][/vc_row][vc_row][vc_column width="1/4"][vc_column_text]

Successful Picks

[/vc_column_text][vc_column_text]Several picks to choose from.[/vc_column_text][/vc_column][vc_column width="3/4"][vc_single_image image="8482" img_size="full" alignment="center"][/vc_column][/vc_row][vc_row][vc_column width="1/4"][vc_column_text]

Trade History

[/vc_column_text][vc_column_text]Performance for this month seems to have reached peak. Upshot is consistency.[/vc_column_text][/vc_column][vc_column width="3/4"][vc_single_image image="8483" img_size="full" alignment="center"][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

Analysis

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Overall Performance in January:

• January is a challenging month with a generally lower success rate and average return compared to the overall monthly averages across all months.
• Trades targeting a 30%-50% return range have a reduced success rate in January compared to the overall average, suggesting higher risk during this month.

Stock Selection:

• WYNN and GOOG stand out as top performers in January, both in terms of winning history and average return. WYNN shows a 100% winning history with an average return of 125%, and GOOG has an 86% winning history with a 143% average return.
• AAPL and BIDU also demonstrate strong performances with high success rates and solid average returns.

Target Return Range:

• Although the overall success rate decreases as the sought return increases, focusing on the 30%-50% range is still viable, especially with specific stocks.
• Given the data, aiming for the lower end of this range (around 30%) might be more prudent to balance the risk and potential for success.

Risk Management:

• Due to the variability and generally lower success rates in January, it’s crucial to adopt stringent risk management strategies.
• Consider reducing position sizes or employing protective measures like stop-loss orders to manage potential downside.

Diversification:

• Diversifying across several of the better-performing stocks (like WYNN, GOOG, AAPL, BIDU) could help mitigate risks associated with individual stock performance.

Recommendations for Trading in January:

• Focus on High-Performing Stocks: Prioritize trades in WYNN, GOOG, AAPL, and BIDU, as they have shown relatively higher success rates and returns in January.
• Target Lower Range for Returns: Aim for the lower end of the 30%-50% return range to balance the increased risk seen in January.
• Apply Cautious Position Sizing: Given the overall lower success rates in January, consider reducing the size of trades to manage risk exposure.
• Implement Protective Measures: Utilize stop-loss orders or other risk management tools to safeguard against significant losses.
• Diversify Trades: Spread your trades across several of the better-performing stocks to reduce the risk associated with reliance on a single stock.

By following these recommendations, traders can better navigate the challenging market conditions typically seen in January while still aiming for profitable opportunities within the 30%-50% return range.[/vc_column_text][/vc_column][/vc_row]