Earlier in March, Ophir Gottlieb from CML Viz did a webinar for my readers demonstrating his Trade Machine backtesting and option scanning software.
It was pretty cool, you should definitely check out the replay:
The password is CML12345
One of the strategies he demonstrated was called a Bull Mammoth, which you can read about here:
When I was looking through the scanner recently, I noticed that a trade had been triggered on March 26th in UNH.
Here you can see the results on UNH when the Bull Mammoth scan gets triggered.
Pretty impressive with 8 wins and 3 losses over the past few years, but the wins resulted in +$15,770 and the losses resulted in -$3,455.
I was tempted to enter the trade, but I was a little wary given that I am new to the software and we were also in pretty full on correction mode at the time. So I decided to sit and watch it which was unfortunate because the trade has done really well.
The strategy called for buying a 14 day to expiry, 70 delta call which was the April 6th, $215 call. At the close of play on March 26th, that call was trading at $6.00 and UNH was at $219.05.
As of April 4th, UNH has risen to $228.79 and that April 6th call has risen to $13.75 for a gain of 129%, so I really did miss the boat on this one.
If you want to try out the software at a discounted rate, you can do so here:
I’ll keep you posted on any further testing and examples that I do with the software.
Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.