Return On Investment

2006 through 2011

Returns include commissions of 80 cents/contract, but do not take into account reserve cash because many subscribers leverage an equity line of credit and move in the reserve cash only when needed.
 

2011 Results

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ROI
Profit/Loss 5.0% 7.0% 8.0% 7.5% 6.5% 5.5% 7.5% -4.0% -10.0% 0.5% 5.0%  

Starting With 10K $10,500 $11,235 $12,133 $13,043 $13,891 $14,655 $15,754 $15,123 $13,610 $13,678 $14,362    
Starting With 50K $52,500 $56,175 $60,669 $65,219 $69,458 $73,278 $78,774 $75,623 $68,060 $68,400 $71,820    
Comments   Click here for more info about the Feb cycle                  

2010 Results

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ROI
Profit/Loss 5.5% 5% -33% 0% 0% 9.5% 5.0% 7.5% 7.5% 9.5% 8.5% 9.5%

34% Simple

Starting With 10K $10,550 $11,078 $7,422 $7,422 $7,422 $8,127 $8,533 $9,173 $9,861 $10,798 $11,716 $12,829 28% Compounded
Starting With 50K $52,750 $55,388 $37,110 $37,110 $37,110 $40,635 $42,667 $45,867 $49,307 $53,991 $58,580 $64,145 28% Compounded
Comments   Click here for more info about the loss in March and new tools and analysis that we put in place to reduce the chance of this happening again. Click here for more info about May   Click here for more info about July and our analysis of Aug, Sep & Oct.          

2009 Results

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total ROI
Profit/Loss 13.5% 6.5% 6.5% 5% 10% 14.5% 4.5% 9.0% 3.0% 6.0% 6.5% 7.0%

92% Simple

Starting With 10K $11,350 $12,088 $12,873 $13,517 $14,869 $17,025 $17,791 $19,392 $19,974 $21,172 $22,548 $24,126 141% Compounded
Starting With 50K $56,750 $60,438 $64,367 $67,586 $74,344 $85,124 $88,954 $96,960 $99,869 $105,862 $112,742 $120,635 141% Compounded

2008 Results

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total ROI
Profit/Loss -11% 13% 8.5% 10.5% 10% 9.5% -10.5% 3.5% 11.5% -35% 13% 15% 33% simple
Starting With 10K $8,900 $10,057 $10,912 $12,058 $13,263 $14,523 $12,998 $13,453 $15,000 $9,750 $11,018 $12,670 26% compounded
Starting With 50K $44,500 $50,285 $54,560 $60,288 $66,317 $72,617 $64,992 $67,267 $75,000 $48,752 $55,089 $63,353 26% Compounded
Comments                 Click here for more info about the loss in October  and what we now do differently to reduce the chance of this happening again.    

2007 Results

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total ROI
Profit/Loss 6.0% 8.0% 8.0% 4.0% 0% 8.5% 10.5% -5.0% 9.5% 8.0% 7.5% 8.5%

63% Simple

Starting With 10K $10,600 $11,448 $12,364 $12,858 $12,858 $13,951 $15,416 $14,645 $16,036 $17,319 $18,618 $20,200 102% Compounded
Starting With 50K $53,000 $57,240 $61,819 $64,292 $64,292 69,757 $77,081 $73,227 $80,184 $86,598 $93,093 $101,000 102% Compounded

2006 Results

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total ROI
Profit/Loss 6.0% 7.0% 12% 5.0% 3.0% -7.0% 5.0% 7.0% 4.0% 7.0% 0% 5.0%

42% Simple

Starting With 10K $10,600 $11,342 $12,703 $13,338 $13,738 $12,776 $13,415 $14,354 $14,928 $15,973 $15,973 $16,772 68% Compounded
Starting With 50K $53,000 $56,710 $63,515 $66,691 $68,692 $63,883 $67,077 $71,773 $74,643 $79,868 $79,868 $83,862 68% Compounded

Returns include commissions of 80 cents/contract, which is a typical commission rate.  Returns do not take into account reserve cash as many MCTO subscribers leverage an equity line of credit and move in reserve cash only when needed.  For more on how the ROI results are calculated please visit the FAQ Page and read entry # 42.

Trade Details - 2006 through 2011

 
             
    2011        
             
Expire Month Index Credit Spread Date Opened Credit Collected Notes ROI Achieved in 30 to 40 days - For  '08 thru '11 it's been 30 days or less Example Cash flow in 30 to 40 days with Hypothetical $50k in maintenance (risk capital)
             
Nov-11 RUT 800/810 Bear CS 11/7 .52

Expired profitable - completed the iron condor on top of the Nov 720/730 bull put spread covering a portion of the cost to roll the spread.

   
Nov-11 RUT 800/810 Bear CS 11/8 .58

Expired profitable - completed the iron condor on top of the Nov 700/710 bull put spread covering more than the cost to roll the spread.

   
Nov-11 RUT 720/730 Bull PS 10/10 0.00

Came in from rolling the Oct 720/730 into the Nov 720/730. The market did not recover so we rolled it again into the Dec 710/720 for a debit of 45 cents. We'll easily cover this cost by opening a Dec bear call spread to complete the iron condor so this roll will be free.

   
Nov-11 RUT 700/710 Bull PS 10/19 .42

Expired profitable 4% gain; came in from roll

   
Nov-11 RUT 650/660 Bull PS 10/31 .61 Expired profitable w/ 6% gain    
Nov-11 RUT 670/680 Bull PS 10/28 .77 Expired profitable w/ 7.5% gain    
Nov-11 MNX 215/220 Bull PS 11/9 .30 Expired profitable w/ 6% gain    
Nov-11 SPY 113/115 Bull PS 11/4 .15

Expired profitable w/ 7% gain

   
         

We've successfully got out of 1 of 2 in-the-money RUT spreads this month, and we got out of the in-the-money SPY and MNX bull put spreads last month. This has been freeing up cash and we've been getting back to work. We have one remaining near-the-money RUT Dec 710/720 bull put spread that we've been rolling and we should be able to get out of this spread in December.

  5.0%  $2,500
         

   
             
Oct-11 RUT 780/790 Bear CS 9/14 1.44

Completed the iron condor on top of the Oct 720/730 bull put spread covering a portion of the cost to roll this spread. This spread expired profitable with a return of +14%

   
Oct-11 RUT 780/790 Bear CS 740/750 Bear CS 9/14 & 10/10 1.88

Completed the iron condor on top of the Oct 700/710 bull put spread to cover a portion of the cost to roll, where they expired profitable. We opened/closed this top spread twice, churning it to bring in as much premium as possible. We first opened/closed the Oct 780/790 for a net credit/profit of $1.44; we then opened/closed the Oct 740/750 for a net credit/profit of 44 cents, bringing in a total credit of $1.88 and a return of +19%.

   
Oct-11 RUT 720/730 Bull PS 9/15 0.00

Came in from rolling the Sep 730/740 into  the Nov 720/730. The market did not recover so we rolled it again into the Nov 720/730 for a debit of $2. We made up some of this cost by opening a Nov 800/810 bear call spread for a credit of 52 cents completing the iron condor and reducing the net cost to roll to $1.48 for a locked in loss of -15%.

   
Oct-11 RUT 700/710 Bull PS 9/15 .42

Came in from rolling the Sep 710/720 into the Oct 700/710. The market did not recover so we rolled it into the Nov 700/710 for a debit of 16 cents, or practically for free. We brought in additional premium by opening the Nov 800/810 bear call spread for a credit of 58 cents completing the iron condor, adding a net credit of 42 cents to this trade.

   
Oct-11 RUT 590/600 Bull PS 8/5 to 8/10 .55 to .70 Expired profitable - new trade for month    
Oct-11 RUT 580/590 Bull PS 8/8 to 8/10 .65 to .95 Expired profitable w/ 8% gain - new trade for month    
Oct-11 MNX 240/245 Bear CS 10/10 .20 Expired profitable w/ 4% gain; attached to trade below    
Oct-11 MNX 210/215 Bull PS 9/9 -.05

Expired out-of-the-money, trade is closed. Came in from roll, expired with a locked in loss of -5 cents debit, or about -1%. However, we opened the Oct 240/245 bear call spread completing the iron condor increasing the return to a +3%.

   
Oct-11 SPY 126/128 Bear CS 10/10 .13 Expired profitable - new trade for month    
Oct-11 SPY 117/119 Bull PS 9/16 .23

Expired profitable 13% gain; came in from roll

   
         

We successfully got out of the MNX & SPY spreads this month, Oct, that went in-the-money two months ago; i.e. we rolled them for two months keeping them in a "holding pattern", we didn't lose any money and we actually  made 3% on the SPY trade and 13% on the MNX trade. On the other hand, the two RUT spreads are the ones giving us a problem and we're still rolling them. If a roll costs us money, we show a loss equal to the net cost of rolling the spread, which we call the locked in loss to roll. We are not showing the drawdown because this value fluctuates daily and will remain negative until the in-the-money spreads move back out-of -the-money.

  +0.5%  $250
         

   
             
Sep-11 RUT 730/740 Bull PS 8/3 0.00

Came in from rolling the Aug 750/760 into the Sep 730/740. The market did not recover so we rolled it into the RUT Oct 720/730 at a debit of $4.70; we made up some of this cost by opening the Oct 780/790 bear call spread for a credit of $1.44 completing the iron condor and reducing the cost to roll to $3.26 for a locked in loss of -32%.

   
Sep-11 RUT 710/720 Bull PS 8/4 0.00

Came in from rolling the Aug 730/740 into the Sep 710/720. The market did not recover so we rolled it into the RUT Oct 700/710 for a debit of $2.80; we made up some of this cost by opening the Oct 780/790 bear call spread for a credit of $1.88 completing the iron condor and reducing the cost to roll to 92 cents for a locked in loss of 9.2%

   
Sep-11 RUT 600/610 Bull PS 9/2 to 9/9 .53 to .72 Expired profitable w/ gains of 5.5% to 7%    
Sep-11 RUT 590/600 Bull PS 9/2 to 9/9 .48 to .61 Expired profitable w/ gains of 5% to 6.4%    
Sep-11 MNX 215/220 Bull PS 8/16 .30

Came in from rolling the Aug 215/220 into the Sep 215/220 for even, i.e. at no cost so we still had a 30 cent credit in Sep. The market did not recover so we rolled it again into Oct 210/215 for a debit of 35 cents; we also opened the MNX Oct 240/245 bear call spread for a credit of 20 cents to complete the iron condor. Thus, the net cost to roll was .30 - .35 + .20 = a credit of 15 cents.

   
Sep-11 MNX 195/200 Bull PS 9/2 .35 Expired profitable w/ gain of 7.5%    
Sep-11 SPY 119/121 Bull PS 8/4 .03

Came in from rolling the Aug Spy 121/123 into Sep SPY 119/121 with 3 cents credit. The market did not recover so we rolled it again into Oct SPY 117/119 for a credit of 20 cents. Total credit in the trade is 3 cents from Aug + 20 = 23 cents credit for Oct.

   
Sep-11 SPY 105/107 Bull PS 9/2 .13 Expired profitable w/ gain of 6.9%    
         

The market continued to fall in Sep and we rolled our in-the-money spreads into Oct. We show a "locked in loss" equal to the cost to roll the spreads from Sep to Oct, less extra premium that we brought in with the top bear call spreads that completed the iron condor. We are not showing the drawdown because this value fluctuates daily and will remain negative until the in-the-money spreads move back out-of-the-money.

-10.0%  -$5,000
         

   
             
Aug-11 RUT 750/760 Bull PS 7/26 .75

Rolled into the RUT Sep 730/740 bull put spread for a debit of $1.15; cost to roll, i.e. locked in loss, is equal to the $1.15 debit less the 75 cents initial credit = debit 40 cents, or a loss of -4%.

   
Aug-11 RUT 730/740 Bull PS 7/27 to 7/29 .78 to .95

Rolled into the RUT Sep 710/720 bull put spread for a debit of $1.10; cost to roll, i.e. locked in loss, is equal to the $1.10 debit less the approx. 80 cents initial credit = debit of 30 cents, or a loss of -3%.

   
Aug-11 RUT 590/600 Bull PS 8/5 to 8/10 .55 to .70 Expired profitable w/ gain of 5.8% to 7.5%    
Aug-11 RUT 580/590 Bull PS 8/8 to 8/10 .65 to .95 Expired profitable w/ gain of 7% to 10%    
Aug-11 MNX 215/220 Bull PS 7/27 to 8/1 .25 to .39

Rolled into the MNX Sep 215/220 for even, i.e. at no cost; thus, we still have a credit of about 30 cents on this trade going into September.

   
Aug-11 SPY 121/123 Bull PS 7/27 to 8/1 .15 to .17

Rolled into the SPY Sep 119/121 bull put spread for a debit of 12 cents; cost to roll, i.e. locked in loss, is equal to the 12 cents debit less the 15 cents initial credit = no loss to roll and we still have 3 cents credit

   
         

The market crashed and forced us to roll most of our spreads into Sep. We show the "locked in loss", which is equal to the cost to roll the spreads, less the initial premium that we brought in. We are not showing the drawdown because this value fluctuates daily and will remain negative until the in-the-money spreads move back out-of-the-money.

  -4.0%  -$2,000
         

   
             
Jul-11 RUT 890/900 Bear CS 7/7 .45 expired profitable    
Jul-11 RUT 885/895 Bear CS 7/7 .55 to .62 expired profitable    
Jul-11 RUT 875/885 Bear CS 7/6 to 7/7 .36 to .52 expired profitable    
Jul-11 RUT 720/730 Bull PS 6/24 to 6/27 .48 to .79 expired profitable    
Jul-11 MNX 200/205 Bull PS 6/24 to 6/25 .20 to .29 expired profitable    
Jul-11 SPY 139/141 Bear CS 7/7 to 7/8 .10 to .11 expired profitable    
Jul-11 SPY 124/126 Bull PS 6/6 to 6/8 .11 to .12 expired profitable    
Jul-11 SPY 117/119 Bull PS 6/27 .12 to .14 expired profitable 7.5% $3,750
         

   
             
Jun-11 RUT 760/770 Bull PS 6/2 to 6/3 .67 to .81 The short Put never went in-the-money, but the underlying index pulled back and touched our trigger point of 773 so we rolled it into an equal number of RUT July 730/740 Bull Put Spreads at no cost; some of our rolls actually brought in a credit as high as 50 cents; we closed the Jun 760/770 for a debit of $1.42 and opened an equal number of Jul 730/740's for a credit of $1.42, adding 30 days to the trade and moving it down farther away from the underlying.  It still has a credit of approx 70 cents for potential return of 7.5% if the RUT expires above 740 on the 3rd Friday of July.  For the ones that we rolled for a credit of 50 cents, they have an outstanding credit $1.20, for a potential return of 13.6%. This trade is still in play and is not included in this month's ROI since we rolled it at no cost.  However, the ROI does take into account the held maintenance for the rolled trade, which reduces the ROI shown.    
Jun-11 RUT 755/765 Bull PS 6/3 .60 to .69 expired profitable    
Jun-11 RUT 750/760 Bull PS 6/3 .53 to .70 expired profitable    
Jun-11 RUT 740/750 Bull PS 6/6 to 6/8 .50 to .63 expired profitable    
Jun-11 RUT 730/740 Bull PS 6/10 .42 to .48 expired profitable    
Jun-11 MNX 212.5/217.5 Bull PS 6/6 to 6/8 .20 to .25 expired profitable    
Jun-11 MNX 210/215 Bull PS 6/8 .20 expired profitable    
Jun-11 SPY 123/125 Bull PS 6/2 .13 expired profitable    
Jun-11 SPY 122/124 Bull PS 6/6 to 6/8 .11 to .12 expired profitable    
Jun-11 SPY 121/123 Bull PS 6/6 .12 to .13 expired profitable 5.5% $2,750
         

   
             
May-11 RUT 885/895 Bear CS 5/10 .36 to .42 expired profitable    
May-11 RUT 775/785 Bull PS 5/3 to 5/9 .43 to .65 expired profitable    
May-11 RUT 770/780 Bull PS 5/3 to 5/4 .42 to .62 expired profitable    
May-11 RUT 760/770 Bull PS 4/27 to 5/4 .42 to .50 expired profitable    
May-11 MNX 222.5/227.5 Bull PS 5/9 to 5/16 .22 to .26 expired profitable    
May-11 MNX 220/225 Bull PS 5/3 .21 to .22 expired profitable    
May-11 SPY 126/128 Bull PS 5/9 .10 to .11 expired profitable    
May-11 SPY 125/127 Bull PS 5/6 .10 to .11 expired profitable 6.5% $3,250
         

   
             
Apr-11 RUT 890/900 Bear CS 4/5 .40 to .42 expired profitable    
Apr-11 RUT 885/895 Bear CS 4/5 .40 to .60 expired profitable    
Apr-11 RUT 880/890 Bear CS 3/30 to 4/6 .38 to .67 expired profitable    
Apr-11 RUT 870/880 Bear CS 3/29 to 3/30 .50 to .67 expired profitable    
Apr-11 RUT 800/810 Bull PS 4/7 to 4/8 .39 to .41 expired profitable    
Apr-11 RUT 795/805 Bull PS 4/11 .39 to .51 expired profitable    
Apr-11 RUT 790/800 Bull PS 4/8 to 4/11 .41 to .42 expired profitable    
Apr-11 RUT 720/730 Bull PS 3/23 .50 to .61 expired profitable    
Apr-11 MNX 220/225 Bull PS 4/11 .20 expired profitable    
Apr-11 SPY 137/139 Bear CS 3/29 to 3/30 .11 to .13 expired profitable    
Apr-11 SPY 127/129 Bull PS 4/11 .09 to .10 expired profitable 7.5% $3,750
         

   
             
Mar-11 RUT 870/880 Bear CS 3/8 to 3/9 .31 to .33 expired profitable    
Mar-11 RUT 730/740 Bull PS 3/4 to 3/10 .43 to 50 expired profitable    
Mar-11 RUT 720/730 Bull PS 2/22 to 3/2 .49 to .71 expired profitable    
Mar-11 MNX 212.5/217.5 Bull PS 3/10 .22 to .34 Got under pressure so we closed it early to play it safe, but we still made a small 2% profit    
Mar-11 OEX 610/615 Bear CS 3/8 to 3/9 .20 to .35 expired profitable    
Mar-11 OEX 550/555 Bull PS 3/10 to 3/14 .20 to .25 expired profitable    
Mar-11 OEX 545/550 Bull PS 3/7 to 3/10 .20 to .25 expired profitable    
Mar-11 OEX 540/545 Bull PS 3/1 to 3/2 .20 to .25 expired profitable    
Mar-11 SPY 121/123 Bull PS 3/7 .10 to .12 expired profitable    
Mar-11 SPY 120/122 Bull PS 3/1 .10 expired profitable 8.0% $4,000
         

   
             
Feb-11 RUT 840/850 Bear CS 2/1 to 2/7 .40 to .58 This spread was under pressure so we closed 1/2 of our position to reduce risk and let the remaining ride.  It ultimately expired profitable    
Feb-11 RUT 690/700 Bull PS 1/28 .50 to .52 expired profitable    
Feb-11 RUT 680/690 Bull PS 1/20 to 1/28 .40 to .52 expired profitable 7.0% $3,500
         

Click here for more info about the Feb cycle

   
             
Jan-11 RUT 840/850 Bear CS 12/30 to 12/31 .40 to .46 expired profitable    
Jan-11 RUT 830/840 Bear CS 1/11 to 1/14 .38 to .45 expired profitable    
Jan-11 RUT 715/725 Bull PS 1/10 .39 expired profitable    
Jan-11 RUT 710/720 Bull PS 1/7 .38 to .40 expired profitable    
Jan-11 OEX 595/600 Bear CS 1/5 to 1/7 .20 expired profitable    
Jan-11 OEX 590/595 Bear CS 12/31 to 1/11 .20 to .25 expired profitable    
Jan-11 SPY 132/134 Bear CS 1/5 .09 expired profitable 5.0% $2,500
         

   
             
    2010        
               
               
          2010 Total Simple ROI 28%  
          2010 Total Cash Generated - Compounded   $14,145
             
Dec-10 RUT 800/810 Bear CS 12/7 to 12/14 .33 to .57 expired profitable    
Dec-10 RUT 790/800 Bear CS 11/24 to 12/3 .33 to .41 expired profitable    
Dec-10 RUT 670/680 Bull PS 12/6 to 12/7 .40 to .43 expired profitable    
Dec-10 RUT 630/640 Bull PS 11/23 to 12/1 .52 to .56 expired profitable    
Dec-10 OEX 580/585 Bear CS 12/10 .15 expired profitable    
Dec-10 OEX 570/575 Bear CS 12/7 .20 expired profitable    
Dec-10 OEX 500/505 Bull PS 11/22 .30 to .35 expired profitable    
Dec-10 OEX 490/495 Bull PS 11/22 to 11/23 .30 to .35 expired profitable    
Dec-10 SPY 127/129 Bear CS 12/7 to 12/10 .08 to .10 expired profitable    
Dec-10 SPY 109/111 Bull PS 11/23 .18 expired profitable    
Dec-10 SPY 108/110 Bull PS 11/23 to 11/28 .13 to .14 expired profitable 9.5% $4,750
         

   
             
Nov-10 RUT 770/780 Bear CS 10/29 to 11/8 .36 to .75 expired profitable    
Nov-10 RUT 760/770 Bear CS 10/29 to 11/2 .47 to .69 expired profitable    
Nov-10 RUT 660/670 Bull PS 11/10 to 11/16 .40 to .55 expired profitable    
Nov-10 RUT 610/620 Bull PS 10/27 to 10/29 .50 to .55 expired profitable    
Nov-10 OEX 570/575 Bear CS 11/4 to 11/8 .20 to .25 expired profitable    
Nov-10 OEX 560/565 Bear CS 10/29 .25 expired profitable    
Nov-10 OEX 515/520 Bull PS 11/12 .25 to .35 expired profitable    
Nov-10 OEX 510/515 Bull PS 11/12 .20 expired profitable    
Nov-10 OEX 485/490 Bull PS 10/27 .30 expired profitable    
Nov-10 SPY 127/129 Bear CS 11/4 .10 expired profitable    
Nov-10 SPY 126/128 Bear CS 11/4 .12 to .13 expired profitable    
Nov-10 SPY 125/127 Bear CS 10/31 to 11/5 .09 to .12 expired profitable    
Nov-10 SPY 113/115 Bull PS 11/12 .10 to .12 expired profitable 8.5% $4,250
         

   
             
Oct-10 RUT 730/740 Bear CS 9/29 to 10/5 .30 to .39 expired profitable    
Oct-10 RUT 720/730 Bear CS 10/4 to 10/5 .42 to .64 expired profitable    
Oct-10 RUT 630/640 Bull PS 10/4 to 10/7 .40 to .65 expired profitable    
Oct-10 RUT 610/620 Bull PS 10/4 .55 to .58 expired profitable    
Oct-10 MID 690/700 Bull PS 9/26 .53 expired profitable    
Oct-10 SPY 120/122 Bear CS 10/10 to 10/13 .09 to .12 expired profitable    
Oct-10 SPY 119/121 Bear CS 10/3 to 10/8 .09 to .12 Got under pressure so we closed it early to play it safe for 10 cents debit - for breakeven 9.5% $4,750
         

   
             
Sep-10 RUT 530/540 Bull PS 8/20 to 9/7 .70 to $1.15 expired profitable    
Sep-10 RUT 510/520 Bull PS 8/22 to 8/30 .50 to .70 expired profitable    
Sep-10 MID 800/810 Bear CS 9/7 to 9/13 .29 to .43 expired profitable    
Sep-10 MID 640/650 Bull PS 8/24 to 9/1 .57 to .75 expired profitable    
Sep-10 SPY 95/97 Bull PS 8/23 to 8/31 .12 to .14 expired profitable    
Sep-10 SPY 110/112 Bull PS 4/27 to 5/5 .13 to .14 Trade still in play; rolled into Nov 110/112 for an avg. net debit of 12 cents.  High probability that this trade will expire out-of-the-money in November 7.5% $3,750