2017 Year in Review

Market Analysis

2017 was a remarkable year in many ways for investors. First and foremost, the market reached new all-time highs with the Dow climbing 25% and the S&P 500 up 19% for the year. In fact, the Dow had 70 record closes during the year! But not to be outdone, the Nasdaq jumped an impressive 28% making 2017 the best year for investors since 2013!

Global economic growth and the strengthening of investor confidence helped propel the markets higher. Interest rates have remained at historically low levels which also helped the markets despite ongoing concerns about political uncertainty. However, the year was unusual in that it lacked any type of sharp pullback that typically accompanies large rallies. The S&P 500 has not suffered a significant pullback since prior to the election and volatility has plummeted to records lows.

The drop in volatility across the board in virtually all asset classes has made trading extremely difficult for option sellers. This past year we had to trade almost exclusively in commodities options which offered slightly higher levels of volatility at times. Despite the challenging trading environment, we still managed to generate a respectable 27.11% return on our trading capital in 2017 after factoring in all of our trading costs (commissions). In fact, 2017 was my best trading year of the past three years!

Changes for 2018

Things are changing in my life which preclude me from continuing to dedicate the amount of resources required to operate and maintain a trading website. I have opened up the entire website as free content. There is no longer a Pro (paid) membership available (or any memberships, for that matter). I will no longer be offering the trade alert service for subscribers. In fact, all current paid members have received pro-rated refunds of their subscription fees.

It has been a great deal of fun publishing this blog and sharing my trades with you in a nearly real-time manner. However, the costs of running the site and time required have become quite significant and I no longer have the ability to continue doing it in a manner that I would find rewarding.

I will leave the site up for now so that it can be a resource to readers, but I do not plan to add content or trades, at least not in the immediate future.

Thank you to all of you that have been faithful readers, subscribers and contributors over the past three years. It truly has been an honor and pleasure to share ideas with you.

Happy Trading and Happy New Year!

  • Chris Fani

    Congrats on a excellent year. Bummed that you will no longer be sharing your trades. Good luck and happy trading.

    • Aram Basmadjian

      Thank you, Chris! Good luck to you, too!

  • Oliver

    Thank you for providing such an objective, very high quality, and persistent content for so long!

    I heard about you in OptionAlpha, (maybe in one of Kirk’s podcast), but
    unfortunately, I joined to your readers later, in just 2017, albeit since
    then I enjoyed and read almost all of your articles!

    Your newsletter was the only one since I had internet(!) that I was looking forward excitedly, and it was my first thing in the morning to look for it and read it through, it has became my habit, I will miss this so much…..

    I wish you a great year, and best of luck for your trading carreer, and I will hope that at someday, you will continue to publish your articles, maybe not in a weekly manner but monthly, or quarterly, or every half a year, or just yearly, just to summarize what happened…

    Anyway, again, I wish you all the best, and thank you, thank you, thank you!

    Oliver, your reader from Hungary

    • Aram Basmadjian

      Thank you, Oliver! This means a lot and I am glad that my efforts were appreciated. I will try to continue publishing articles when and if I have something worthwhile to pass along, but it will definitely not be on a consistent basis. Happy New Year!

  • Thomas Collado

    All the best to you, thank you.

    • Aram Basmadjian

      Thank you, Thomas!

      • robert Gregor

        I’m fascinated by your trading strategy on the spx. Do you post your trades. How can I learn?

  • Michael

    Many thanks for all your great content, Aram. You have been an inspiration! I hope my own blog and trading can live up to the standard you have set. Good luck and I hope to see you posting again in the future.