Copy This Options Strategy, It Made Me $586,670

Strategy and Approach

Karl Domm describes PL5/PO5 Pro—the subtitles use several variations of the name—as a rules-based, non-directional broken-wing put butterfly on SPX options.

The stated structure is:

• Buy out-of-the-money puts near −30 delta.
• Sell twice as many puts near −18 delta.
• Buy twice as many farther out-of-the-money puts near −3 delta.

This is described as a 1:2:2 ratio; an earlier description gives equivalent sizing of 2:4:4.

Entries are made on a schedule, without chart analysis, indicators, or forecasts about market direction. One demonstration uses options with around 100–105 days to expiration.

The position is entered as a multi-leg order with defined risk. Domm uses GTC profit-taking orders and says adjustments are typically needed about every 10 days, requiring roughly 30 seconds a day of attention. He also describes time-based exits if hedging becomes too weak.

He says the strategy has no traditional stop-loss. One simulated position had a roughly $3,000 profit target; the demonstrated live position had a $500–$1,000 target.

The demonstrations use OptionNet Explorer and Thinkorswim. Domm says portfolio margin is important for capital efficiency and that regular margin is inefficient for this structure.

Performance Claims Made in the Video

• Headline result: An account reportedly grew from $125,000 to over $711,000, a claimed profit of about $586,000 and a return exceeding 468%.
• Strategy statistics: Domm cites a 73% win rate, about six weeks as the average time to profit, a 2.2:1 risk/reward ratio, average annual returns of about 22%, and a maximum realized drawdown of −9.89%. He also says positions reach their target in about 40 days on average.
• Separate real-money record: For version 3.0, he reports a 14-month, 31-trade record with 90% winners. Across 28 winning trades, the average win was $4,767; across three losing trades, the average loss was $2,499. He cites $126,000 in net liquidation profits, then says the equity curve showed a $145,000 gain after including later results. He also notes a $25,000 withdrawal.
  • For that period, he reports a largest drawdown of $5,819, compared with a largest win of $6,239. Average trade duration was 25 days: 35 days for winners and 16 days for losers.
• Historical-data presentation: Over about 11.5 years, he claims average annual returns of 22%, more than $1.1 million in profits from a $125,000 starting amount, and no losing years in the cited 11-year period. He cites returns of 108% in 2020 and over 18% in 2022, comparing them with declines in the S&P 500.
• Individual examples: A simulated trade reportedly gained $4,000 after 16 days, and a live-account trade gained about $2,500 after roughly two weeks.
• Student example: Domm says student Rob made over $656,000 using the strategy.

Risks, Caveats, and Disclosures

The results and performance figures are claims by the presenter. The video shows an equity curve and trading-platform examples, but the subtitles do not establish independent verification or provide audited performance details.

One win-rate passage is unclear in the subtitles: it says “73% of winners” averaged $740 and “20% of winners” lost $618. The latter may have meant losing trades.

Domm acknowledges that a large market rise can create losses and that volatility and market moves affect the position. He argues that rising volatility during a sharp decline may benefit the trade, but this is not guaranteed.

The strategy has no traditional stop-loss, and Domm says portfolio margin is needed for the intended efficiency. Options and portfolio margin can involve substantial risk, including losses and margin requirements.

No explicit “not financial advice” disclaimer appears in the subtitles. Past or simulated results do not assure future performance.

Presenter and Sources Mentioned

Karl Domm is the presenter. The demonstrations reference OptionNet Explorer, Thinkorswim, and historical market data. Student Rob is cited as an example.