🐻 AMZN Bear Put Spread

Weekly Options Backtest — Performance Summary & Analysis

AMZN (Amazon) Jan 3 – Oct 12, 2022 10 Contracts Bearish Directional Net Debit
Total P&L
+$12,091
2022-01-03 → 2022-10-12
Win Rate
42.9%
12 wins / 16 losses
Total Trades
28
Weekly entries
Avg P&L / Trade
+$432
Per trade average
Profit Factor
1.06
Gross wins / gross losses
Sharpe Ratio
0.17
Weekly × √52 annualised
Max Drawdown
$110,796
Peak-to-trough equity
Payoff Ratio
1.42x
Avg win / avg loss

📈 Equity Curve

⚙️ Strategy Configuration

Ticker
AMZN
Contracts
10
Structure
Bear Put
Long Strike
0.98×
Short Strike
0.95×
Entry Day
Monday
Entry Time
9:40 AM ET
Exit Day
Thursday
Exit Time
3:45 PM ET
Expiry
Next Friday
Strike Rounding
$5
Pricing Model
Black-Scholes

How It Works

Buy put @ 0.98× price (higher strike)Pay premium — long leg, bearish
Sell put @ 0.95× price (lower strike)Collect premium — caps max profit
Net debit paid at openMax loss = debit × 100 × qty
Profits when AMZN falls below long put strikeMax profit = (width − debit) × 100 × qty

📊 Win / Loss Analysis

Win Rate Breakdown

Winners (12)42.9%
42.9%
Losers (16)57.1%
57.1%

P&L Breakdown

Average winner+$16,516
Average loser$-11,631
Best trade+$41,048 (2022-04-04)
Worst trade$-27,795 (2022-02-07)
Total gross wins+$198,188
Total gross losses$-186,097

⚠️ Risk Assessment

Max Drawdown

$110,796

Worst Single Loss

$-27,795

Avg Max Loss / Trade

$13,662

Profit Factor

1.06

Sharpe (Annualised)

0.17

Payoff Ratio

1.42x

Strategy Risk Profile

MetricValueNotes
Risk per trade (max)$13,662 avgNet debit paid — defined risk
Max profit per trade$47,588 avgWidth minus debit
Max drawdown$110,796Peak-to-trough cumulative
Best single trade+$41,0482022-04-04 open
Worst single trade$-27,7952022-02-07 open

💡 Key Insights

Profitable Strategy

Total P&L of +$12,091 over 28 trades — the bearish directional bias aligned with AMZN's 2022 downtrend.

⚠️

Win Rate Below 50%

Only 42.9% win rate. As a net-debit strategy, a payoff ratio of 1.42x is needed to be profitable — check if it clears that bar.

⚠️

Net Debit Risk Profile

Unlike credit spreads, the debit paid is the maximum loss per trade. Losing streaks consume capital faster. Defined risk, but requires directional accuracy to be profitable.

⚠️

2022 Bear Market Context

AMZN fell ~50% Jan–Oct 2022. The bearish put spread should have directional tailwind, but intraweek chop (open Monday, close Thursday) may have muted returns or caused whipsaws.

⚠️

Model Limitations

All pricing uses Black-Scholes (European) with 20-day trailing historical vol. No commissions, slippage, pin risk, or early-exercise risk are modelled. Actual results will differ.

📋 Full Trade Log (28 trades)

Open Date Close Date Expiry S Open S Close Long K / Short K Width HV% Net Debit Close Value P&L Cum P&L
2022-01-03 2022-01-06 2022-01-07 $3354.79 $3266.00 3290 / 3185 105 23% $8.9035 $24.7184 +$15,815 +$15,815
2022-01-10 2022-01-13 2022-01-14 $3212.93 $3227.58 3150 / 3050 100 22% $7.0683 $0.0508 $-7,017 +$8,797
2022-01-24 2022-01-27 2022-01-28 $2779.32 $2794.74 2725 / 2640 85 30% $11.7881 $0.4822 $-11,306 $-2,508
2022-01-31 2022-02-03 2022-02-04 $2895.51 $2777.02 2840 / 2750 90 38% $17.3089 $54.5717 +$37,263 +$34,754
2022-02-07 2022-02-10 2022-02-11 $3168.60 $3181.15 3105 / 3010 95 66% $29.7147 $1.9198 $-27,795 +$6,960
2022-02-14 2022-02-17 2022-02-18 $3037.80 $3093.90 2975 / 2885 90 67% $28.2236 $5.8237 $-22,400 $-15,440
2022-02-28 2022-03-03 2022-03-04 $3049.47 $2958.42 2990 / 2895 95 64% $29.1350 $43.3469 +$14,212 $-1,228
2022-03-07 2022-03-10 2022-03-11 $2908.70 $2936.23 2850 / 2765 85 37% $16.0992 $0.7055 $-15,394 $-16,622
2022-03-14 2022-03-17 2022-03-18 $2910.28 $3147.50 2850 / 2765 85 42% $18.0984 $0.0000 $-18,098 $-34,720
2022-03-21 2022-03-24 2022-03-25 $3222.41 $3273.14 3160 / 3060 100 47% $24.2343 $0.1325 $-24,102 $-58,822
2022-03-28 2022-03-31 2022-04-01 $3299.00 $3264.99 3235 / 3135 100 43% $22.2917 $5.0725 $-17,219 $-76,041
2022-04-04 2022-04-07 2022-04-08 $3287.78 $3156.44 3220 / 3125 95 35% $16.1552 $57.2035 +$41,048 $-34,993
2022-04-11 2022-04-14 2022-04-18 $3050.74 $3033.94 2990 / 2900 90 35% $21.6615 $12.5393 $-9,122 $-44,115
2022-04-18 2022-04-21 2022-04-22 $3040.00 $2968.09 2980 / 2890 90 30% $12.9046 $30.8381 +$17,933 $-26,182
2022-04-25 2022-04-28 2022-04-29 $2873.68 $2892.03 2815 / 2730 85 37% $15.4709 $2.1237 $-13,347 $-39,529
2022-05-02 2022-05-05 2022-05-06 $2446.50 $2328.43 2400 / 2325 75 66% $23.8460 $44.9826 +$21,137 $-18,392
2022-05-09 2022-05-12 2022-05-13 $2228.40 $2140.00 2185 / 2115 70 70% $22.6727 $37.6992 +$15,027 $-3,366
2022-05-16 2022-05-19 2022-05-20 $2262.87 $2146.04 2220 / 2150 70 73% $23.5186 $48.4934 +$24,975 +$21,609
2022-05-23 2022-05-26 2022-05-27 $2162.31 $2221.53 2120 / 2055 65 76% $22.2125 $7.1382 $-15,074 +$6,535
2022-06-06 2022-06-09 2022-06-10 $125.34 $116.16 125 / 120 5 55% $1.7719 $4.6567 +$2,885 +$9,419
2022-06-27 2022-06-30 2022-07-01 $117.12 $106.42 115 / 110 5 55% $1.2635 $4.5171 +$3,254 +$12,673
2022-07-18 2022-07-21 2022-07-22 $115.06 $124.68 115 / 110 5 40% $1.5397 $0.0000 $-1,540 +$11,133
2022-07-25 2022-07-28 2022-07-29 $122.73 $122.27 120 / 115 5 41% $0.8394 $0.3254 $-514 +$10,619
2022-08-08 2022-08-11 2022-08-12 $141.89 $140.70 140 / 135 5 52% $1.4534 $0.9844 $-469 +$10,150
2022-08-15 2022-08-18 2022-08-19 $142.79 $142.37 140 / 135 5 53% $1.2762 $0.1023 $-1,174 +$8,976
2022-08-22 2022-08-25 2022-08-26 $135.65 $137.29 135 / 130 5 54% $1.7410 $0.2157 $-1,525 +$7,451
2022-09-12 2022-09-15 2022-09-16 $134.14 $126.36 130 / 125 5 33% $0.3952 $3.3144 +$2,919 +$10,370
2022-09-19 2022-09-22 2022-09-23 $122.20 $117.29 120 / 115 5 41% $0.9587 $2.6800 +$1,721 +$12,091