We are happy to be introducing several enhancements to the OptionGenius.com service this month. As the days go on, we will announce 3 major improvements that should make membership much more valuable.

The first of these enhancements is Autotrading.

We are pleased to announce that starting today, we will be autotrading with Eoption.com ( a registered broker/dealer).

Autotrading is a great concept where members have the ability to have their broker execute the OptionGenius.com trades for them in their account.

Best of all, there is no extra charge for this service.

What this means for members:

Once we send out an email trade alert, your broker will automatically enter that order for you in your account. Chances are your order will be filled faster than you could do it yourself. Eoption.com has an autotrade desk where they have people who just sit and wait for these alerts all day. Once it comes in, they enter the [...]

Confused about the European debt problem?

Don’t be. Here is a simple video explaining it all in simple english.

Would you like a 17% one day return?

That’s what one of my members got today. He actually did much better than I did. I am still in this trade. He was able to get in at a much better price than I did yesterday and already exited the trade today.

The trade is a butterfly on IBM. For members, it is May Trade #2

I got into the trade for a debit of 1.24, but this member got in at 1.15. For 4 contracts his cost was $460.

He sold the butterfly and exited the trade for 1.35 today. That’s a gain of $80 and a return of 17.39% – in one day!

I myself am up a little less than 10% so far.  Hopefully I too will be out in a couple more days with a nice double digit gain.

Got a great email from a member about how he made some quick profits from the recent volatility…

“Allen,
 
I had a wonderful two days with this volatility, by changing your procedure slightly.
 
The changes I implemented are:
 
1. When it looks like we are in a bearish market, do only the bearish call spread and NOT the bullish put spread. Do the converse when in a bullish market.
 
2. In a volailte market that whipsaws, do not close out both the high and low strikes simultaneously. Rather close out the short position first, since that is the one costing us the maintenance requirement. The long position has no impact on the maintenace margin requirement.
 
This is what happened:
 
On Thursday May 06, being my birthday, I wanted to try my luck at Day Trading with options, since the market looked quite volatile!
 
Did a RUT May 720/730 bearish call spread. Bought the 730 call at 2.39 and [...]

I don’t usually share the weird and the wacky, but this one freaked me out.

Click here to see the picture

Courtesy of member John Gadd,

Q:  Which has the greatest chance of occurring?
     1.  The sun rising tomorrow morning
     2.  Hotter in Summer, Colder in Winter
     3.  RUT hitting 1000 by noon tomorrow

A:  Is a trick question — because all have the same odds…..

It’s funny because John, along with so many other traders is frustated by the never ending upmove of the RUT. If you haven’t been trading the RUT the last couple months, you won’t understand.

The Sandra Bullock Trade
By DAVID BROOKS
Published: March 29, 2010

Two things happened to Sandra Bullock this month. First, she won an Academy Award for best actress. Then came the news reports claiming that her husband is an adulterous jerk. So the philosophic question of the day is: Would you take that as a deal? Would you exchange a tremendous professional triumph for a severe personal blow?

On the one hand, an Academy Award is nothing to sneeze at. Bullock has earned the admiration of her peers in a way very few experience. She’ll make more money for years to come. She may even live longer. Research by Donald A. Redelmeier and Sheldon M. Singh has found that, on average, Oscar winners live nearly four years longer than nominees that don’t win.

Nonetheless, if you had to take more than three seconds to think about this question, you are absolutely crazy. Marital happiness is [...]

By strict definition, this term basically means the transfer of a person’s rights to another person or business.  In terms of stock options, it refers to a notice given to an option writer that states the option (that was sold to a buyer) has officially been exercised.  Exercised as in executed, not exorcised, which would have an entirely different meaning.  Whenever a seller has been assigned then he or she is obligated to finish the requirements as stated in the option.  For instance, if the option was a call then the writer/seller of the option would have to sell the security at the agreed upon price.

 When the holder of an option wants to exercise the option he/she notifies his/her broker. The broker will notify the Options Clearing Corporation (OCC) of the event.  After this, OCC fulfills the rest of the contract and then selects a firm that happened to be [...]