We are pleased to announce that we have cracked the High Profitability with safety code. In the year 2012, a leading Romanian Journal O Economica published our Research "Ratio Spread with Calls, Creating a Zero Downside Risk in Stock Market. You can download this research by clicking on the link below:
This research was conducted between January 2008 and June 2011. Net annualized returns were 72.21% (Net annualized since it is a 11 day per month strategy). When we updated the research further till December 2016, Net annualized returns fell a bit but still it was 60%, Not at all bad since Entry and Entry points are fixed and even Recipe every month is fixed. And it is working for the last 8 years. We have received enormous appreciation for this strategy ever since it was published. However, there was one flaw in this strategy.
This strategy had Zero downside risk, but unlimited upside risk, Whenever monthly expiry happened more than 3.5% above the ATM Strike price (on which calls were shorted), there used to be huge losses. When we deleted the losses from such months (18 out of total 96 months), the Net annualized return rose to 146.55%. Even if we consider the annual return (assuming that the trader traded for only 11 days in a month and the return was calculated for the whole year), return was more than 50%. The task for us was to minimize the losses for such months or to convert even those months in to profits.
We are pleased to announce that we have now found an effective solution to this problem by modifying this strategy to an arbitrage strategy (by also involving next month and next to month series). Benefits of our expertise are now available to all those clients who fulfil our terms and conditions. We promise to continue this work in future and to make the Options code easier and more profitable.