The methodology has a record.
A proprietary long/short equity options strategy, running since January 2025. Returns calculated using Time-Weighted Rate of Return methodology. Calendar-year performance is independently verified by a U.S.-licensed CPA.
Independently verified by a U.S. licensed CPA under AICPA AT-C Section 215 attestation standards. Verification details available upon request. These are 2025 calendar year figures. Current year below.
Returns without the corresponding risk numbers are meaningless. Here they are.
Every month, for context.
| Month | Strategy | S&P 500 | Alpha |
|---|---|---|---|
| January 2025 | +6.06% | +2.33% | +3.73 pp |
| February 2025 | +0.89% | −0.25% | +1.14 pp |
| March 2025 | +9.03% | −5.97% | +15.00 pp |
| April 2025 | +15.60% | −0.51% | +16.11 pp |
| May 2025 | +7.74% | +5.09% | +2.65 pp |
| June 2025 | +15.08% | +5.23% | +9.85 pp |
| July 2025 | +23.26% | +2.46% | +20.80 pp |
| August 2025 | −8.46% | +2.75% | −11.21 pp |
| September 2025 | −12.98% | +4.48% | −17.46 pp |
| October 2025 | +22.97% | +2.63% | +20.34 pp |
| November 2025 | +6.99% | −0.48% | +7.47 pp |
| December 2025 | −8.47% | +0.49% | −8.96 pp |
| Full year | +97.71% | +19.22% | +78.49 pp |
Current year, honestly.
The strategy is in a drawdown. June and July both posted losses of roughly 20%, putting 2026 at −17.88% through July and 36.85% below the May 2026 peak. These figures are unaudited and posted monthly regardless of what they say. Full year 2026 numbers go to the same independent CPA verification after December close.
| Month | Strategy return |
|---|---|
| January 2026 | +8.45% |
| February 2026 | −1.72% |
| March 2026 | −1.44% |
| April 2026 | +11.02% |
| May 2026 | +11.51% |
| June 2026 | −20.99% |
| July 2026 | −20.08% |
| YTD through July 2026 | −17.88% |
This is the second one
August and September 2025 also posted back to back losses, 8.46% and 12.98%, for a 20.34% drawdown that recovered the following month. A strategy that produced 97.71% in a year with three losing months is not a smooth one, and the 2025 figures said so at the time. This drawdown is larger, at 36.85% against 20.34%, and it has not turned yet. Both facts belong on the same page.
What went wrong
2026 has traded in fast, sharp swings within a sideways range with short trends between them. The strategy is built for moves that develop over weeks, and it did not adapt quickly enough. Three specific errors made that worse. The book carried more than twenty positions at once, too many to manage at the speed the market was moving. Structures were chosen that capped upside during the April and May advance, so theses that were fundamentally right did not pay what they should have. And winners were held too long for this kind of tape, giving back gains already earned.
What changed
Three rules were tightened in July. Position count is capped at fourteen. Structures are selected against the specific thesis rather than defaulting to a familiar shape. Entries are staged in chunks and profits are booked gradually rather than held to the full target. Whether that is enough is an open question, and the monthly numbers on this page are how it gets answered.
A note on comparing figures
Returns here are time weighted (TWRR), which strips out the effect of deposits and withdrawals. TWRR is the measure the CPA verification applies and the one that allows a like for like comparison across periods.
No black boxes.
Strategy type
Long/short equity options. Positions include single-leg calls and puts and multi-leg structures (vertical spreads and calendars). Underlyings are U.S.-listed equities and ETFs. Holding periods typically range from a few weeks to three months.
Return methodology
All monthly returns are calculated using the Time-Weighted Rate of Return (TWRR) formula: (Ending Value − Beginning Value − Net Cash Flows) ÷ Beginning Value. This isolates investment performance from the effect of deposits and withdrawals. Annual returns are computed by geometric linking: (1 + R1) × (1 + R2) × … × (1 + R12) − 1. Returns are net of all brokerage commissions and fees, as these are reflected directly in the underlying account values used in the calculation.
Source of data
All monthly values are sourced exclusively from the model brokerage statements. No estimates, no adjustments, no smoothing.
Verification process
Calendar-year performance is submitted annually to a U.S.-licensed CPA for an agreed-upon procedures engagement conducted under AICPA AT-C Section 215 attestation standards. The CPA independently reconciles every monthly figure against the corresponding brokerage statement, recalculates each monthly return, and recomputes the annual TWRR. The 2025 engagement returned no exceptions. Full verification report available upon request.
What’s not in these numbers
Withdrawals from the account (taxes, personal use) are excluded from return calculations by design. TWRR isolates investment performance from cash flows. The account is not subject to institutional custody, third-party risk controls, or a prime broker relationship. It is a retail brokerage account, which is the point. The record shows what this methodology has produced inside the constraints of a one person trading business, in both directions.
Because the numbers invite skepticism. They should.
Is this a backtest or a live track record?
Live. Every position was executed through a regulated U.S. retail brokerage account. Every dollar was real. There are no simulated, paper, or back-filled returns in any of these figures.
Why don’t you share live trades?
Because the goal is to make you better at deciding for yourself, not better at following. Signal services create dependency. Subscribers follow calls, and when the calls slow down or stop working, they churn. Methodology-based education creates durable capability. Once you know how to think through a trade, you keep using that process regardless of what anyone else is doing. The track record above is proof the methodology works. The Constellation Method teaches you to run it on your own book.
How many trades is this based on?
266 positions across 94 tickers in 2025. A few numbers worth knowing: position-level win rate was about 57%, close to even. Of the 94 tickers traded, 46 were net winners and 48 were net losers. The return didn’t come from being right more often. It came from sizing winners larger than losers and cutting losses on a rule. That’s the methodology, made visible.
What are you actually trading?
Equity options on U.S.-listed stocks and ETFs. Primarily single-leg long calls and puts, vertical spreads, and calendar spreads. Holding periods typically range from a few weeks to three months. No naked short options, no futures, no crypto, no leveraged ETFs.
Why is correlation to the S&P near zero?
The strategy is long/short and uses options structures as a tool to trade idiosyncratic thesis execution on individual names, not broad market exposure.
What is the worst stretch you have had?
June 2026: −20.99%, followed immediately by −20.08% in July. That is the current drawdown, 36.85% from the May 2026 peak, and it has not turned yet. The prior one was August and September 2025, −8.46% and −12.98%, reaching 20.34% before recovering the following month. Two things are true at once. Drawdowns are a feature of this strategy rather than an aberration, and this one is materially deeper than anything that came before it.
Can the strategy scale?
At current capital levels, yes. The strategy trades liquid U.S.-listed names, and retail-sized positions move through without friction. Capacity would become a consideration at meaningfully larger AUM, which is relevant for future products but not for the methodology as taught.
Can I see the CPA report?
The full independent practitioner’s report is available on request through the contact form. The report is subject to the CPA’s standard engagement terms.
How is this a teaching product if you’re running the strategy yourself?
The Constellation Method teaches the methodology. Thesis development, structure design, sizing, execution discipline, post-mortem review. It gives you the framework to run the process on your own book, not to copy what I’m doing on mine. Future products for different audiences are on the roadmap, but the Method is the thing built for people who want to learn the practice and run it themselves.
Want to see how these returns are built?
A free, educational walkthrough of the Method. Not personalized advice or signals.
Important information
Past performance is not indicative of future results. Trading equity options involves substantial risk and is not suitable for every investor. The strategies, analyses, and metrics shown on this page reflect the performance of a single retail brokerage account operated by the founder of Constellation Stocks. They do not represent an investment fund, a managed account service, or an offer to manage money on behalf of others.
Content on this site is educational in nature and does not constitute personalized investment advice. No content here should be construed as a recommendation to buy or sell any security. Readers are responsible for their own investment decisions and should consult qualified professional advisors as appropriate to their circumstances.