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The
Woodyard Option Report
Long-Term Performance
A three-year study of the options listed in The
Woodyard Option Report from May 2003 to April 2006
(see chart)
shows:
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72% of the options listed were always
worthless to the buyer
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86% of the options expired worthless to the
buyer
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14% of the options were exercised by the
buyer
To view the full report card click here.
We use these rules to grade our long-term performance:
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Each and every option in our report is included in determining the performance
of the report
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The option is theoretically SOLD at the beginning of the next trading day
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Each option was monitored to determine whether it was always worthless
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Every option was monitored to determine if it expired worthless
Here is how savvy traders could have achieved even
better results than those of our analysis:
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Where we used all the options listed in the report to calculate the results,
your research may allow you to avoid options that might be questionable. For
example- selling a put in an energy related stock while the price of energy is
going down. If you have determined that energy prices have stabilized then the
option may be worth your while, otherwise you may avoid it.
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While the analysis did not use any fundamentals, news releases, analysts'
comments or any additional data, you should be using these sources and more to
help you determine the best options to sell.
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Even though the analysis made no additional trades when the underlying stock
prices moved below the strike price, you may use strategies to reduce your
risks. Examples of this include:
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Buying the option back and if it price you pay is less than what you sold it
for, then you have made money.
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Buying the option back and selling a new option further out for more than you
paid to buy the original option.
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The
Right Stock
at the
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at the Right Price!
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