It was rough week for us at SPX Option Trader.   We ended this past week with -231% ROI in our SPX weekly option trading, and -231% ROI in our SPY weekly option trading, -186% ROI in our SPX Binary Trader and -205% ROM in our SPX Spread Trader.  Not a great week for us, but certainly not the worst week we have experienced. It is important after such weeks to take a step back and look at the bigger picture. Drawdowns happen and if a trader is not prepared for such periods, they will not succeed in this business.

There are some periods in trading where no matter what you do, it seems to be the wrong thing. All indications look like the market should rally, it tanks. All indications look like it should tank, it rallies. Such time periods are never enjoyable and are incredibly frustrating. They can cause a trader to double think everything they are doing and consider changing. But this is not the best way to respond to such time periods. If you have an approach that has been proven over time, it is best to stay consistent. Ensure you are trading a small enough lot size so that the drawdowns do not wipe you out and stay consistent.  We have an approach that has proven itself reliable over many years and so we do not change anything because of a few flat or down weeks. Drawdowns happen, every trade is a risk and sometimes things do not go as we expect. Rough patches come in trading, the key is to weather those times and still be standing when it is over.

We have seen many of these types of weeks in the past, and we expect to see more in the future.  But as we stay consistent, keep our lot size manageable we will weather this just like we have the others.  A few rough days does not mean our approach is invalid and it is time to start over. It is all a part of trading. We stay consistent in approach and are successful over the longer term. So, we shake ourselves off from this past week and look forward to a fresh start next week.  Below are our comments for each day of the week:

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