What do you do again and how much is it?
We provide trading suggestions. Our specialty is credit spreads. These spreads bring in a credit when executed. We then monitor the suggestions for our members.
Our fee is $97 per month billed automatically to your credit card or paypal account. We do offer discounts for longer term memberships.
There are no other charges. We do not charge you a percent of profits or any management fees.
Your only other costs would be your brokerage commissions, that you would pay to your stock broker.
How Do I Cancel a Membership?
You can cancel anytime. No long term contracts or commitments. Just takes a couple clicks.
1. Credit cards – If you joined by using your credit card, then you can click on the Cancel link in the members’ area. The Cancel link is blue and located on the Members Account Info page. or you can just email us. Please keep in mind that no refunds are given, so if you want to cancel, do so BEFORE your next renewal date.
2. Paypal – If you joined by using your Paypal account, simply log into your Paypal account and cancel the recurring subscription from there. That way, you will be sure it has been done. Please keep in mind that no refunds are given, so if you want to cancel, do so BEFORE your next renewal date.
What makes your service different?
We feel there are a number of reasons our service is unique.
1. We put our money were our mouths are. We are in every selection with real money.
2. We believe in keeping trading simple. We do not mess around with adjustments like rolling down or forward to another month. We also do not mess with iron condors.
3. The main problem with credit spreads is that one max loss can wipeout months of gains. That is why we don’t suffer large losses. We place stop losses at 25%. If a trade is down 25%, we exit and move on.
4. Our trade selection criteria is very stringent. We don’t just sell delta 10 strikes. Each trade has to pass a series of checks before we post it to the site.
Can you give me an example of a trade?
An example Trade Alert could look like this:
Stock Symbol: XYZ
Sell to Open March 275 Puts
Buy to Open March 270 Puts for a credit of .60 per spread.
This trade will expire on March 22. As long as XYZ is trading above 275 on expiration day, this trade will work.
Probability of expiring worthless for maximum gain is 84%.
Margin required: $440. The Margin is also the maximum you can lose on this trade.
Maximum Potential Gain: $60 or 13.6% (That is before commissions. Your commissions might be $2 for this trade.)
Stop loss: 25%. Exit the trade if the debit gets to 1.70
This is an example only. This was not an actual trade.
How many positions do you have at one time?
There will be between 2-5 positions a month. We try to add a position every week, but will not force it if the markets are not behaving or we do not find a suitable candidate. We are in each position anywhere from 1 to 5 weeks.
What broker do you recommend?
There are many great brokers out there. As long as they allow you to trade options and sell spreads you will be fine.
When choosing a broker, make sure they have what you need:
- Good software with real time quotes and trade modeling ability
- Low commissions
- Competent and quick customer service
- Good fills on trades
How much do commissions cost?
Brokers usually have 2 separate pricing strategies.
The first is a per option charge. So the broker might charge you $1 per option. Since a credit spread is comprised of two separate options (you sell one and you buy one) for each spread your total commission would be $2. This is fine for those traders who trade in smaller sizes.
The second method is a flat fee and a charge per option. So the broker might charge you $5 per trade and .25 per option. This method is better for traders who trade lots of contracts.
A rule of thumb is that your commissions should cost less than 6% of the total you can make on the trade.
Each broker charge something different so shop around for good rates. They will also negotiate with you if you are willing to deposit a large amount into your account or if you trade a lot of contracts.
Do you trade Weeklies or Minis?
Not at this time. All options are for monthly expiration and full size.
How and when are alerts sent?
When a new selection is made, we get executed in our real money account first to see what price is obtainable. We then email out the selection to all members. This is done during the trading day.
We try to enter trades on calm days so that everyone has a chance to get filled as a price similar to what we received. Even if you enter the trade the next day, you should get a similar credit.
How should I allocate funds?
Since we are not registered advisors, we cannot answer this question for you.
We can tell you that you should use sound money management.
For example: If you limit each trade to 10% of your account, and use a 25% stop loss, you should not lose more than 2.5% of your total account on any position.
What underlyings do you trade?
We hold positions in ETFs and optionable stocks. We stick to the most liquid ones.
You have probably heard of most of the underlyings we trade.
Some examples are: SPY, AAPL, IBM, GOOG, GS, IWM, and many more.
Can I do this if I have never traded options before?
Yes. Layup spreads are not that hard to understand. There is a lot of information available online about them. You should papertrade our suggestions for a few months before you risk any funds. This will give you practice on your broker’s trading platform and get several trades under your belt.
Many brokers also provide free education and training videos. Contact your broker for more info.
What kind of account do I need?
You will need an account that can not only trade options, but you must be able to sell credit spreads in your account. Please contact your broker to make sure you have the correct trading level.
Do you offer Autotrade?
Yes, autotrade is available at no additional charge. Please see our Autotrade Page for more details.
Do you guarantee I will make money?
Where there is reward, there is always risk. One balances the other. So no, we do not guarantee any such thing. Trading is full of probabilities.
How much can I lose?
It depends on how much you put at risk. Technically, even though we use stop losses, every position can lose 100%.
Common wisdom dictates “Don’t put all your eggs in one basket”.
How safe is this?
There is really no way to answer this. Safe compared to what?
There is risk involved. Losses have occurred and will happen in the future. Although past results cannot tell the future, our site’s track record is pretty impressive.
Can I do this in my IRA?
IRA rules allow it, but your broker also has to allow it. Please contact your broker to make sure. If they do not, find another one.
How Can I Sell an Option If I Don’t Own One?
Options are contracts. They do not exist until an agreement between a buyer and seller takes place. As option sellers, we tell our broker what we want to do, and if there is someone who wants to take the other side of our trade, we will get our trade filled.
Is there a certain date I should sign up to get the next position?
No. We add positions regularly. Today is a great day to get started.
What Is The Refund Policy?
All Sales Are Final. There are no refunds for membership. To avoid being billed for a future month, make sure you cancel before your renewal date. You can find your renewal date in the members area.