The OTS trading strategy focuses on selling premium in situations where implied volatility is higher than its historical average, bases entries on probabilities of success around 1 standard deviation or greater than 68% probability of success, and where the passage of time serves as a profit engine.

Since the beginning of April, the OTS Premium Option Trading Service produced the following returns.


The table above illustrates all of the trades that have been closed since April 1, 2013. As can be seen above, on 06/17 the OTS Portfolio sold TNA June Monthly 46.50 Puts naked. The position was closed in the final hour of trading on 06/18.

The trade capitalized on higher prices, time decay, and a reduction in implied volatility while producing a total gain on maximum margin incurred of around 13%. The price chart of TNA is shown below which illustrates where the OTS Portfolio sold TNA naked puts which is a synthetic long position in TNA.


Ultimately the trade was a success and adds to a string of solid trading performance as of late.

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This material should not be considered investment advice. J.W. Jones is not a registered investment advisor. Under no circumstances should any content from this article or the website be used or interpreted as a recommendation to buy or sell any type of security or commodity contract. This material is not a solicitation for a trading approach to financial markets. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This information is for educational purposes only.

June 18th – 13% gains in 48 hours in TNA Naked Puts