Trading Experience
Our invaluable expertise in market analysis and trade timing.
Earning about 5% per year can be done with a very conservative strategy, and is acceptable for the majority of investors. Through options and our proven strategy, we try to earn 5%, EACH WEEK.
Trading options successfully requires for one to be correct in both timing and direction. If the underlying asset moves favorably, but not quickly enough, you lose. If it makes a move in the anticipated time, but not in the right direction, you lose again. Even if the underlying asset does nothing, the options could still be a loser since they are wasting assets. (The value of options decrease with each passing day)
Knowing this, why do people trade options? Because getting that one trade right, could result in returns of 100% or more, overnight. Of course, chances of that happening are slim... you have to be lucky or know something very few people do.
We take a slow and steady approach with our low-return, high-probability of success trading strategy, without forgetting the importance of Capital Preservation.
Our invaluable expertise in market analysis and trade timing.
Weekly trade goals, aiming for a 5% return each time. Certain market conditions may increase or decrease trade volume.
Constant supervision of open trades to maximize gains and minimize losses.
Stay informed of our economy and how it may effect the markets.
Link with participating brokers to have them automatically submit trades for you. More...
Unlimited e-mail support and unfettered access to our privileged Member's Area.
NOTICE: To ensure autotrade orders are filled, limit prices may be slightly adjusted from our fill price.
Costs to use an autotrade service as well as broker commissions are separate fees from ours, paid to those services.
You will need to subscribe to our service before we can authorize any autotrading in your account
The table below shows which brokers can be autotraded through available autotrade service providers.
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Unavailable through these providers but we can establish a link directly. Contact us to let us know and we'll send you additional instructions. |
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Unavailable through these providers but we can establish a link directly. Contact us to let us know and we'll send you additional instructions. |
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Unavailable through these providers but we can establish a link directly. Contact us to let us know and we'll send you additional instructions. |
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Autoshares is a broker that can autotrade directly. No autotrade provider is necessary. Contact Autoshares to establish an autotrade link with us and define your allocation amounts through them. |
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We buy and sell index options that have weekly expirations.
The options that we sell are valued higher than those we buy so that we receive a credit as we open the trades. This type of trade is what's known as an option credit spread. As each day passes, the value of this spread decreases. Depending on the situation, we either buy these back at a lower price or allow them to expire worthless.
While ONLY selling options garner larger credits, that strategy poses too high a risk to justify putting ourselves in a potentially catastrophic position, should that type of trade turn against us. In that instance, we'd have no protection and could, theoretically, lose an infinite amount of money. However, by buying AND selling specific options, in what are called vertical option spreads, we minimize our exposure and afford ourselves the ability to effectively manage our downside risk. Remember - we are striving for trades with at least an 80% probability of success with moderate returns as opposed to trades reaping higher returns but cause sleepless nights.
Our subscribers will receive timely e-mails with detailed instructions on how to open each trade. Subsequent e-mails would follow should adjustments be necessary. We also maintain a member's page wherein we post the latest messages, trades, and current positions.
We try to open up one credit spread trade each week. Depending on the market, we may sit out a risky week or open multiple trades.
We realize that many services employ spam e-mail-tactics in an effort to trick their subscribers into thinking that they are receiving a lot for their money. We, on the other hand, are confident in the fact that our subscribers will instantly recognize the valuable service we provide and, therefore, do not resort to these tactics. The most important of e-mails would be those containing instructions on the opening of trades or adjustments, thereto. We do provide periodic market updates, but even this will not be an everyday occurrence.
We monitor the markets everyday but only open positions when we see a good opportunity. There is no set day or time for when we open positions.
Depending on market conditions, trades are held between 0-4 trading days.
The best case scenario is when our position expires worthless. This does not require a closing trade, saving on commissions. Why pay commission costs when you don't have to? Sometimes we may close out a position early to take profits and remove any risk from the table. Whatever the case, all of our subscribers will be notified immediately by e-mail if we close out or adjust our position(s). In turn, the same message will be displayed in the member area for all to see.
Most of our subscribers started with little or no experience. Our trades are e-mailed to our subscribers with very detailed and precise instructions so that our members have no problem entering and exiting. We first recommend paper trading and educating yourself (Options Industry Council) on our strategies until you feel comfortable enough to actually make a live trade. With our trading experience though, our members have gained a comfort level with placing these trades and a substantially larger trading account to go along with it.
If you have any questions or need help with a trade, it would be best to speak with someone at your brokerage firm. Each broker's trading platform is different and they would be able to assist you best. As another option, one could sign up for Autotrade to have their broker execute the orders automatically in their account. (more information on Autotrade below)
It is very important that you open an account with an options friendly broker that will allow credit spread trades. They will understand our trading strategy and have better pricing. If you do not currently have a broker, visit our Autotrade page.
Autotrade is a service that specific brokers provide. Please visit our Autotrade page for a list of brokers that provide this service. After defining your allocation settings with your broker, your account will automatically trade when they receive our trade alerts. We do not guarantee orders being filled through autotrade. We have no control over the process and that responsibility falls on your broker.
This is something that you need to figure out for yourself, depending on your situation. Most of our subscribers have started trading with $10,000 or $20,000, earning $500 to $1000 per week. Any amount less than $5000 may result in noticeably reduced returns since you will have to pay your broker their commission. Be sure that you DO NOT invest your entire portfolio. NEVER put everything in one basket.
Stock options are option contracts for a particular company such as Netflix or Apple. Index options are contracts for a particular index such as the DJIA, S&P 500, etc.
We trade index options and index based ETFs because they are less volatile than an individual stock options. Indices consist of a number of stocks weighted together in one basket. If one stock in that basket has some negative news come out, the odds of the entire index trading downward is not likely.
Of course. All investments do not come without risk. With a higher than 80% success rate, one could statistically expect to have 1 losing trade for every 5. Although losses will happen, we feel that the consistent success of our strategy will more than make up for any losses that we incur. Take a look at our track record!
We calculate our trades using the following formula: credit or debit / margin requirement
Lets use SPX 1380/1385 Call for $0.25 credit as an example.
If the trade expires worthless, we have now gained $0.25 per share. Since we sold a $5.00 spread (1385-1380),
our margin requirement is $4.75 ($5.00 - $0.25). To get the percentage gain, we plug the numbers in the formula
above. In this case, it would $0.25 / $4.75 or 5.26%
Lets say this trade gets in trouble and we have to buy back the spread for $1.00. Our net debit would be $0.75
($1.00 - $0.25). The margin requirements is $4.75 (calculated above). Our loss would be $0.75 / $4.75 or 15.79%
If, for any reason, you do not wish to participate in our system any longer, simply log in to the member's area, go to the Profile page, and cancel the subscription.
PeakBot (autotrade service)
Tradier
Interactive Brokers