SK OptionTrader Continues to Outperform Other Gold Trading Vehicles
Thursday, July 14, 2011 at 04:54AM
SK Options Trading

The versatility of options is much greater than that of the actual underlying asset behind the option, for this reason SK Options Trading uses them to optimize trades from a risk-reward perspective. This use of options allows us to maintain a limited amount of risk whilst taking on an aggressive trading stance.


Options provide many more opportunities in the market than speculation on the direction of underlying asset prices. Through the timing of our trading signals, we have created a model portfolio that is currently up 338% with an annualized return of 117%. The performance of this model is possible due to the recognition and timing of, opportunities that are very attractive from a risk-reward perspective. It is also due to the fact that we use options as our trading vehicle, so can profit whether the market goes up, down or even sideways.

To demonstrate the advantages of options trading, and the relative performance of SK OptionTrader we have simulated all of our past gold related trades. The simulation is based on how a portfolio would have performed if investment capital had been risked in GLD instead of options for each gold trade we recommended. We have also mapped the performance of HUI and DGP, the gold stocks AMEX index, and Deutsche Bank double leveraged gold ETN. This chart creates a comparison of using the option trades we recommend, versus being invested in the market at the same time but with a long DGP/GLD/HUI position.



(Note: This only includes the performance of gold related trades, not any other trades such as silver, oil, equities etc)

The graph above clearly shows that our premium options trading service, SK OptionTrader, outperforms other methods of trading gold with a return of 142.45%.

Using only gold based trades, SK OptionTrader has outperformed both GLD and HUI nearly 7 times over, and has outstripped DGP more than double.

The purpose of this simulation is not to show our trading ability, but to demonstrate the advantages of using options as a trading vehicle relative to other instruments. Regardless of your own opinion of the direction of the market, we think options provide the best tool for trading gold.

If one is in favour of simply buying and holding, we would suggest that options could still have something to offer your investment portfolio. Since SK OptionTrader began offering trading recommendations to subscribers, gold is up around 50%, with the HUI index up around 25% and DGP up about 100%. This means that even in risking ones entire trading portfolio in DGP, one would not get close to the performance of gold options trading in the SK OptionTrader model portfolio.

Sometimes a large portion of our portfolio may be in cash, and in each individual trade, not more than 10% is ever risked and the risks are strictly limited. This means that our portfolio performance of 117% p.a. is not simply due to high leverage being taken, but due to options being very versatile instruments and allowing us to successfully profit from our market views being correct.

If you want to maximise the profitability of your portfolio, sign up to SK OptionTrader now to receive market updates and trading signals concerning options.

Feel free to check out our full trading record where we are averaging a return of 40.41% per trade including losses and contact us if you have any questions.

Due to number of subscriber requests that we have received, we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with Global AutoTrading and therefore autotrading is now available for SK OptionTrader signals.


Subscribe for 6 months- $499

Subscribe for 12 months- $799


Article originally appeared on SK Options Trading (
See website for complete article licensing information.