Skip to main content

Backtesting XLK (Rolling 4s Strategy)

 Long Term XLK (Rolling 4s) Play

 

This is a breakdown of some back testing I did on playing XLK with a LEAP option. LEAP options are 1-2 year plays using the Excel pricing sheet created by Mark Monroe to select the strike price. 

 

Setup: Bought the EFT when the it bounced up off a key support/EMA (typically 50) and a bounce up as the EFT was up trending. 

 

Entries:

1.     March 8, 2019 Purchased XLK Call 

– Stock @ $69.95 

– Expiration Jan 15, 2021 

– $77 Strike @ $4.48 

– 10 Contracts 

– Total investment $4,480

2.     June 17, 2019 Purchased XLK Call 

– Stock @ $76.25

– Expiration Jan 15, 2021 

– $86 Strike @ $3.90 

– 10 Contracts 

– Total investments $3,900

3.     September 16, 2019 Purchased XLK Call 

– Stock @ $81.05 

– Expiration Jan 21, 2022 

– $91 Strike @ $6.25 

– 10 Contracts 

– Total investment $6,250

4.     December 31, 2019 Purchased XLK Call 

– Stock @ $91.40 

– Expiration Jan 21, 2022 

– $105 Strike @ $4.48 

– 10 Contracts 

– Total investment $4,480

5.     March 16, 2020 Purchased XLK Call 

– Stock @ $76.24 

– Expiration Jan 21 2022 

– $80 Strike @ $10.95 

– 10 Contracts 

– Total investment $10,950

 

 

 

 

Exits: 

Exited all of the 5 trades on the same day (August 19, 2020) before the market peaks. Just selected a time that I felt would have been a good time to sell. 

 

XLK @ $115.26

 

1.     Sold @ $34.00 - ROI 658% - Return $34,000 – Profit $29,520 – 17 month duration

2.     Sold @ $26.60 - ROI 582% - Return $26,600 – Profit $22,700 – 14 month duration

3.     Sold @ $29.55 - ROI 372% - Return $29,550 – Profit $23,300 – 11month duration

4.     Sold @ $15.52 - ROI 246% - Return $15,520 – Profit $11,040 – 8 month duration

5.     Sold @ $27.50 - ROI 151% - Return $27,500 – Profit $16,550 – 5 month duration

 

Summary:

This was 5 separate plays starting on March 8, 2019 and entered quarterly thru March 2020. All plays were exited on the same day in August 2020. 

 

The total investment on all the entries were roughly $30K for a total return of $133K. The profit is $103K which results in an overall ROI of 341%.

 


Think, Live, & Be Unstoppable!

The Emotional Trader

Thank you for reading this blog...please subscribe so when more content comes out you will be notified and can go on this journey with me. 

 

Comments

Post a Comment

Popular posts from this blog

Richest Man

  R Richest Man in Babylon My #1 Book Recommendation If you have known me for some time and you ask about finances or what has helped me in the past to get better and my finances, then nine times out of ten I recommended reading The Richest Man in Babylon  by George S. Clason. The reason for that is this book helped me get out of one of the moments in my life when I was broke broke and as John Legend said "Had to go to my moms house to make a phone call." Also the format of the book is in story form which helps teens and adults remember the concepts better.  Here is a short summary of the principles in the book and I pray you find yourself at a 2nd hand bookstore or Amazon purchasing this book for you and your family.  Set in ancient Babylon, it presents timeless principles of wealth accumulation through a series of engaging parables and stories. The book revolves around the character of Arkad, the richest man in Babylon, who shares his wisdom and financial acumen wi...
Post a Comment
Read more

Overcoming the Fears of Network Marketing: My 20-Year Journey

  Overcoming the Fears of Network Marketing: My 20-Year Journey Hey there, fellow network marketers! I’ve been in this game for over 20 years now, and let me tell you, it’s been a rollercoaster. I’ve worked with multiple companies, faced countless challenges, and yes, I’ve had my fair share of fears. If you’re new to this industry, you might be feeling some of those same fears right now. I get it. I was there once too, and sometimes I still find myself wrestling with those same worries. The Fear of Running Out of Prospects One of my biggest fears when I first started was running out of prospects. You know that sinking feeling when you’ve reached out to everyone you know, and you’re not sure who to talk to next? Yeah, I’ve been there. In those early days, I felt like my network was shrinking instead of growing. I worried that I’d hit a dead end and be stuck with no one left to recruit. But here’s what I learned: You’ve got to keep going. Consistency is key. I started atten...
Post a Comment
Read more

How I used AI...

... To Build a Custom Homeschool Math Curriculum for my 2nd Grader In today’s world of digital noise and endless demands, homeschool parents wear more hats than ever. We’re not just educators—we’re curriculum designers, budget analysts, meal planners, spiritual guides, and motivational speakers before breakfast. But what if you could outsource just one hat…without ever giving up your crown? That’s where ChatGPT steps in—not as a replacement for your wisdom, but as a partner in your mission. 🧠 Your New Teaching Assistant, On-Demand Whether you’re building a full year’s curriculum or just trying to survive next Monday’s lesson, ChatGPT offers a quick, customizable, and cost-free way to map out your child’s learning. Within seconds, you can ask: “Create a week’s worth of 2nd-grade math assignments.” “Design a Bible-integrated history unit for 6th grade.” “Help me explain photosynthesis to a 10-year-old using visuals and analogies. And it responds with detailed lessons, proje...
Post a Comment
Read more