The Ultimate Track Record
Ken Trester
Managing Editor
Jeff Carter
Senior Editor
Ken Trester, Managing, Editor of Ultimate Option Strategies, has personally traded the options markets every year since 1973.
In 1983 Ken began editing an options newsletter for investors like you and has continued to do so except for two years — 1999 and 2000 — when he took a well earned sabbatical leave.
His newsletter has never had a losing year. That's an incredibly profitable record. But is he perfect?
No he is not.
Ken plays mathematical percentages (he is a former college professor of statistics and computer science). Ken is the first to admit that he can take several losses in a row before he hits big. I want to be clear. Ken takes losses, as a subscriber you will as well.
A One Year
Track Record Only
We publish a one year track record once every calendar year. We do
not publish weekly or monthly track records simply because they are
deceptive.
We believe that ALL trading and investing -- in stocks, mutual funds and in options --- is a long term venture. Any slice representing a few weeks or even months is not an accurate reading on either the up side or the down side. Ken has winning streaks, losing streaks and times that are distributed with both winners and losers.
The 2007 Track Record
2007 marks his 25th anniversary of consecutive wins in the options market.
A summary of the results for our key options plays shows that we recommended 106 positions . 26.4 % hit their profit goal and 42.4% were profitable (the stock price hit profit goal or was positive or even after the hold period).
If you would have purchased one of each of the options, you would have invested $12,844. Your profit before commissions would have been $2,071 or a 16.1 % return for holding the position a maximum of three weeks. Here the annualized return would be several hundred percent. As in previous years several positions almost hit their profit goal but eventually were stopped out. Therefore, be aggressive about taking profits on part of your position even if it does not hit the profit goal. Several stocks went further beyond the profit goal. That is why it is important to let part of your position ride when you take profits with a trailing stop, even beyond the 3-week time period. -Ken Trester
The 2006
Track Record
2006 marks his 24th anniversary of consecutive wins in the options market.
A summary of the results for our key profit box options plays shows that we recommended 105 positions . 33% hit their profit goal and 43.8% were profitable (the stock price hit profit goal or was positive after the hold period). If you would have purchased one of each of the options, you would have invested $12,530.
Your profit before commissions would have been $2,605 or a 20.7% return for holding the position a maximum of three weeks. Here the annualized return would been several hundred percent. As in previous years several positions almost hit their profit goal but eventually were stopped out.
Therefore, be aggressive about taking profits on part of your position even if it does not hit the profit goal. Several stocks went further beyond the profit goal. That is why it is important to let part of your position ride when you take profits with a trailing stop, even beyond the 3-week time period.
The Details
This track
record is theoretical and assumes that you were able to take profits at
the profit goal option price (two options were priced after a gap up in
the stock price and estimates were made when data was not available) or
exit at the stop-loss option price when the stock hit the profit goal or
closed below the stop-loss stock price. or were able to get the
corresponding option price in the Option Box at the end of the 3-week hold
period. These option prices were determine by their implied volatility at
the start of the strategy.
Commissions
are not included in these track record results. There is high risk in
option trading. You can lose your whole investment. Our past results are
theoretical no actual positions are taken. No representation is being made
that any account will or is likely to achieve a profit. In fact, there are
sharp differences between hypothetical performance and actual results.
Some trading skill is needed to achieve good results. We advise all
investors that it should not be assumed that present or future
recommendations will be profitable or equal past performance. -Ken Trester
How Ken Makes Money
As noted above Ken's system for buying options produces a winner about 50%
of the time. A one-in-two winner may not sound so hot, but that's all you
need when you play the high payoff -- triple digit -- probabilities
consistently. This is, without doubt, a long term options program.
Ken system is disciplined in that he takes small losses on about half of his recommendations while taking large -- often triple digit profits.
As you can see with this technique the long term has been historically profitable.
For more information about Ken Trester's newsletter, Ultimate Option Strategies click here
Instant Access to Stock Option Trading Advice