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How to make 4X of SP500 returns in the stock market?

Alright, that is a clickbait title - but it is also true. I did the same % return as #SP500 in the last month but using only a fourth of my capital. Since I am using a margin account, I will usually not use more than 50% of my capital, so apple-to-apple, I did double of #SP500 #returns from my #trading. But what I am really pleased about is my #Sharperatio during this period.

Now, this Sharpe will not be sustainable in the medium to long term. But as long as I do better than #SPY even by 25%, #powerofcompounding will do the rest for my portfolio.

How do I trade?

I trade using #interactivebrokers which allows equities, futures, and options to be traded in the same account and allows #portfoliomargin. They also offer excellent tools for #riskmanagement and #portfoliomanagement. Below is what I had in my portfolio two days back, I have closed some of these positions today and have added some but you will get the drift.

I am also #vega positive, so I benefit from any #volatility spike. #Theta being the price for Vega, I am net positive between Vega and Theta. I am paying less in terms of time decay to gain exposure to positive volatility.

I will also monitor my portfolio beta for equities to ensure I manage #correlation risk.

In my next long blog, I will cover my analysis framework on how I plan my portfolio.

I use Interactive Brokers ( no affiliation) to trade and I use OptionStrat( ) affiliate link , for my option analysis.

Happy Trading!

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