ROI Note Iron Condor Pinnacle June 2020

Since COVID-19 crashed the markets in late Feb 2020, it took about 3.5 months for the broad market to stabilize and for volatility to come down.  Since mid-June, market volatility has finally declined to a manageable level, though it’s still elevated.  The COVID crash was one of the fastest, deepest, and most violent crashes that we’ve seen in 25 years. Most stocks, ETFs and indexes were down 35% to 45% in less than 3 weeks.

In the last month, market volatility has been declining, and most of our Pinnacle trades are now expiring profitably.  Thus, we are finally getting back to work and we should be able to book some nice profits near 5% to 7% monthly through the end of the year. We’re able to target slightly higher monthly profits because market volatility is still elevated, but manageable.

As of mid-July, we are sitting on a +11% gain, so for the month of July, so far, it’s looking good.

This strategy is managed conservatively where the exposure level is held below 40% during steady state; thus, sufficient levels of cash is held in the accounts to manage through unexpected spikes in volatility.

All trades and returns can be verified as we send all trades to 3 separate brokers for autotrading.