Frequently Asked Questions
1. How much
is your service?
The service is just $79 per month. There are
also packages for multi-month memberships which
can save you money. Keep in mind that as membership
grows, the price will go up, but once you sign
up, your price will not increase as long as your
membership is active.
is membership limited?
Multiple reasons actually.
1. I try to personally help every member that
needs it. My time is limited.
2. I don't want thousands and thousands of people
doing the same trade. It would distort the market.
We wouldn't get the best prices because supply
and demand would shift and that particular trade
would no longer make sense.
3. I also want to have some exclusivity to the
This sounds too good to be true. Why isn't everyone
There are actually a few people doing this. They
are called market makers and hedge fund managers.
For example, Warren Buffet uses some of these
strategies. So does Pete Najarian, a panelist
on the CNBC show Fast Money along with hundreds
of others that trade options for a living. As
you can imagine, they don't want everyone doing
the same trades or else they would lose their
Another reason is that options, if used irresponsibly,
can be risky. If you don't know what you are doing,
you will lose. I've been to seminars put on by
two of the companies that say they "teach"
you to trade options. But you only learn enough
to be dangerous. Armed with what I learned in
these seminars, I proceeded to lose over 50% of
my money. You have to pay them $30,000 more to
be coached and actually learn the real strategies
that we use here. You might be wondering which
seminars I went to. They were two-day seminars
that cost several thousand dollars to attend,
and about half the time was spent selling software
packages, additional courses and coaching.
haven't I heard of these strategies before on
CNBC or in the Wall Street Journal?
If you listen or read carefully you might hear
about some of the strategies. But for some reason,
the media does not talk much about option trading
or advanced option strategies.
Truth be told, these strategies only become suitable
for investors in the last 4-5 years. Before that
option commissions were too high. There weren't
as many instruments to trade options on as there
are now, and ETF's weren't invented yet.
Years ago, you never heard much about short selling
either, but now you do. I expect, in the next
5-10 years hearing about option trading will become
5. But I've
lost money in the past with options!
I don't buy options. I sell options. The majority
of option traders are option buyers and that is
why they lose money. Statistically, the odds are
stacked against them. I play with the odds in
my favor. I like being the casino, not the gambler.
I use spread trades, which are positions that
protect you from a large loss. I use a conservative
style of trading and keep my losses as small as
possible. It's ok if you have lost before. Most
individual option traders are negative over their
lifetime. By watching me trade and following my
trades anyone, even if you have lost a lot before
or have never traded before, can learn to do what
I suggest you just paper trade the trades until
you feel comfortable. And then when you jump in
to live trades start small, very small. Start
with just one contract if you want. Get a feel
for the trade, then increase your size as you
gain more confidence in the system.
if I have never traded an option before?
We have committed to continue to add several tutorials
on the site that can get you up to speed. All
you need to learn is how to place orders on your
broker's system. If you call your broker, they
will be happy to help you. Our trades are very
simple to place with your broker.
Until you feel comfortable I suggest you paper
trade my trades. Most brokers now offer paper
trading versions of their software so you can
trade with "fake" money and no risk.
I trade using my retirement accounts?
Many option brokers allow you to trade these strategies
in your IRA as long as your account is all cash.
All my trades can be done in an IRA but your broker
has to allow it. If you broker does not, I suggest
moving to a broker that allows you to do whatever
you want with your own money. Don't let your broker
tell you what you can or cannot do with your capital.
if I can't trade during the day because of my
No problem. When you get home, check your email
for any about new trades or adjustments. If there
is anything to be done, log into your broker's
website and put in your order for the next day.
We are not day traders. You can get into our trades
up to a few days after we release them. As long
as the trade falls within the criteria that we
set for that particular trade you can get in.
For example: every trade comes with instructions
about how much debit or credit you should get.
Even if you are placing the trade 3 days after
we released it, if you are still getting close
to the same credit/debit, you can place the trade.
We also have Autotrade
which can help those of you who cannot trade during
9. How do
you notify members of trades?
Once a trade is made, we email all members. We
also update the website right away. You can also
sign up to receive a text message when a trade
is made so you don't have to be watching your
email box all day.
How liquid are the markets you trade?
Very liquid. Our bread and butter trades use indexes,
which trade hundreds of thousands of option contracts
every day. Our supplementary trades are in stocks
and ETFs that trade thousands of option contracts
a day. You will not have trouble getting into
or out of positions unless the market goes completely
bonkers. But that is another reason membership
What if the market goes crazy again like in October
In October 2008, I actually did not release any
trades. We lost unexpectedly in September 2008
and the market just was not acting right. Volatility
was too high, and the point swings were too large
for a conservative trader like me to risk my neck
and money. So we stayed out and were back in November
(which was a profitable month).
But the unexpected can occur at anytime, like
9/11. If the market tanks in a day or in a continued
move, all our trades have a max loss, which you
will know when you place them. And as always I
will be watching all our trades like a hawk alerting
you when things get hairy.
Can I use your trades if I do not live in the
If your broker allows it sure. We actually have
lots of members who do not live in the USA. It
doesn't matter where you live. You could place
these trades from the beach in Australia or Fiji
or the mountains of the Andes or Himalayas. Live
anywhere in the world and make money trading:
Why don't I buy a course and learn on my own?
You could. I did, and continued to lose money.
I always say you should continue to educate yourself.
Learn as much as you can. With my newsletter you
have me right there with you in the same trade.
I tell you when to get in, when to adjust, and
when to get out. There is no guessing.
How much money do I need to have in my account
to use your system?
I suggest you start with $10,000. But some people
start with more and some start with less. You
shouldn't start with less than $5,000. If you
do have less than $5,000 you can still join and
papertrade the trades until you have enough money.
Everyone joining should papertrade for a few months
before risking real money, but especially those
with little to risk.
Do you trade these same trades in your account?
Yes. I place every trade that I release to members.
How many trades do I have to make every month?
I try to release 3 to 5 trades a month depending
on market conditions. You are free to choose any
of these trades. You can do as many as you want.
What broker should I use?
There are several good ones. Anyone that allows
you to trade option spreads is fine. But make
sure they charge you less than $2 commission per
option. Once you are a member, you can see whom
we recommend in our Resources section.
Do you do Autotrading?
Yes. We are now
autotrading with a couple brokers. More info
is available on the member's homepage. Autotrading
is a method to have our trades executed for you
by your broker in your account. You have full
control at all times.
Can you just manage my money for me like in a
Sorry, but I don't manage money. I only trade
my own. But I give you my exact trades so it is
almost the same thing. This way, you can brag
to your friends that you are a successful trader.
Do you guarantee I won't lose money?
Of course not. While I do my best to keep from
losing money, we do have losses. Losses are unavoidable.
As long as the losses are smaller than our profits
we will be fine.
What do I need to start?
All you need is a membership and a funded account
at a broker that allows you to trade option spreads.
I personally like to get all the bells and whistles
when I open an account even if I am not going
to use every bell or whistle. When you go to open
an account to trade options, the broker might
ask you how much experience you have trading options.
If you do not list enough experience, the broker
might not let you trade the types of strategies
we do. In that case, find another broker that
Don't see your question here?