We’re on Track for a Bumper Year By Larry Benedict, editor, The S&P Trader It was another busy week. We had a total of 10 trades… and eight more winners. As of Friday’s close, we’ve made 127 trades this year. And 84% have been winners. That means we’re ahead of 2023’s performance, where we finished out the year with an 80.6% win rate. That was enough to turn $10,000 into $21,456 by trading a single contract – a cumulative 114% return. Compare that to the S&P 500, which finished 2023 with a 24% gain. So far this year, we’re also averaging a 2.1% gain on the capital committed per trade. That’s not 2.1% a year – our average holding period is just one day… If you made 2.1% in one day and repeated that trade over the year’s 252 trading days, then you’d be up 529%. So let’s take a look at last week’s trades… 
(Click here to expand image) We had two losses this week. One of those was very small (-$3 per contract). And the other was our quad witching put trade that unfortunately went against us. That resulted in a -$390 loss per contract. Of course, any loss is disappointing… That’s especially true with a quad witching trade, which has historically been lucrative for me and my subscribers. Prior to this June quad witching, these trades delivered S&P Trader members an average gain of 40.15% per trade. That’s with an average holding period of just under 1.5 days. Despite the S&P 500 retracing later in the week, it was still trading above our put option’s strike price at expiry. That meant our put option expired worthless. The important thing to remember with options is that we always know exactly how much we’re risking before we place the trade. In this case, it was the $390 premium we paid per contract. And including our losses, we still finished the week up $1,139 per contract. That now puts us up $6,244 per contract year-to-date (YTD) – and we’re only approaching the midway point of the year. And I’m looking to bank even more profits in the days ahead… A Look Ahead We saw a hot Purchasing Managers’ Index composite reading on Friday – its highest level since April 2022. And the market’s attention will focus on more important data this coming week… On Thursday, we’ll learn the latest durable goods orders along with initial jobless claims. Remember, the Federal Reserve is watching the jobs market closely to gauge the strength of the economy. A strong rise in jobless claims or the unemployment rate could bring forward the prospect of a rate cut. And, of course, the Fed’s other major focus is inflation… With the latest Personal Consumption Expenditures inflation data due Friday, it could be another big week ahead. So stay tuned to your inbox as we look to trade the resulting market action… And if you have any questions or would like to share your trading results, you can send them to feedback@opportunistictrader.com. I’m always glad to interact with readers. Regards, Larry Benedict
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