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2 min read backtest

This Option Strategy Made You >2.5x Buy-and-Hold in AAPL

This Option Strategy Made You >2.5x Buy-and-Hold in AAPL in the last one year.
This Option Strategy Made You >2.5x Buy-and-Hold in AAPL
Sum from Wins > Sum from Losses

I ran a backtest on an AAPL Put Strategy from 8/13/2024 - 8/13/2025.

Here are the details.

Scenario - Sell a Put to earn a Premium

Strategy

  • Sell Put
  • 1 Contract
  • 30 ∆
  • 45 DTE

Entry Conditions

  • On exact DTE Match
  • Number of active trades open at a given time: 10
    • Note: I received the same results with a maximum of 5 active trades.

Exit Conditions

Exit:

  • At 21 DTE
  • Or, if loss has exceeded 100% of original premium
  • Or, if profit has exceeded 50% of original premium

Other Conditions

  • Trades (entries and exits) are executed at the mid price once per day at 12:45:00 PM.
  • Capital Required/Used: $12,800

Results

$1,806 Profit on $12,800 Deployed Capital
$1,806 Profit on $12,800 Deployed Capital

Summary

Entry and Exit Conditions
Entry and Exit Conditions

Details

14% Return on Used Capital
14% Return on Used Capital

Trades

Trade Log
Trade Log

Conclusions

Sell 45 DTE Puts in AAPL? No. At least not always. I do try to stick to 45 DTE entry and 21 DTE (or earlier) exits.

Anyway, this page shows a single backtest, only in the past one year, at a time when AAPL has had a bullish run.

In the world of finance and business, you are often fooled by a single success or data point masquerading as a genius.

This page, like this website, is just entertainment.

No one knows what is going to happen tomorrow, so we try to create stories out of the past. Sometimes, past is useful to know and learn from. Sometimes, it is not. I hope you found the experiment entertaining.

Thanks for reading!

📌 Disclaimer: Nothing on this site is financial advice - I’m just here to entertain! Here’s my introduction, my trading philosophy, and some ground rules.

Published by:

Foolish Trader