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.
2. Why is membership limited?
Multiple reasons actually.
- We try to personally help every member that needs it, but our time is limited.
- We 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.
- We also want to have some exclusivity to the newsletter.
3. This sounds too good to be true. Why isn’t everyone doing this?
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 thousands of others that trade options.
CNBC has a show called Options Action in which they talk primarily about these strategies.
Another reason is that options, if used irresponsibly, can be risky. If you don’t know what you are doing, you will lose. In fact, more traders do lose money. Our goal is to show you what we do and the thinking behind it so you can learn from our experience (mistakes).
4. Why haven’t I heard of these strategies before on TV or in the Wall Street Journal?
If you listen or read carefully you might hear about some of the strategies. The media is catching up and from time to time you will hear about these strategies. Forbes magazine frequently has articles on them.
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. We expect, in the next 5-10 years hearing about option trading will become commonplace.
5. But I’ve lost money in the past with options!
We don’t buy options. We sell options. The majority of option traders are option buyers and that is why they lose. Statistically, the odds are stacked against them. We play with the odds in our favor. We want to be the casino, not the gambler.
We use spread trades, which are positions that protect you from a large loss. Our conservative style of trading is desgined to try to and keep losses as small as possible. It’s ok if you have lost before. Most individual option traders are negative over their lifetime. By watching us trade and following our suggestions anyone, even if you have lost a lot before or have never traded before, can follow along.
We suggest everyone just paper trade the suggestions for a few months. And 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.
6. What 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 Wesuggest 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.
7. Can 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 our trades can be done in an IRA but your broker has to allow it. If you broker does not, you can looking into moving to a broker that does. Don’t let your broker tell you what you can or cannot do with your capital.
8. What if I can’t trade during the day because of my job?
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.
If you are even in doubt, we are only an email away.
We also have Autotrade which can help those of you who cannot trade during the day.
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.
10. 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 tens of 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 is limited.
11. What if the market goes crazy again like in October 2008?
In October 2008, we 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 conservative traders like us to risk our necks. 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 we will be watching all our trades like a hawk alerting you when things get hairy.
12. Can I use your trades if I do not live in the USA?
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.
13. Why don’t I buy a course and learn on my own?
You could. We did, and continued to lose money. We always say you should continue to educate yourself. Learn as much as you can. With our newsletter you have us right there with you in the same trade. We tell you when to get in, when to adjust, and when to get out. There is no guessing.
14. How much money do I need to have in my account to use your system?
We 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.
15. Do you trade these same trades in your account?
Yes. we place every trade that I release to members.
16. How many trades do I have to make every month?
We 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.
17. 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.
18. 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.
19. Can you just manage my money for me like in a mutual fund?
Sorry, but we don’t manage money. We only trade my own. But we give you our exact trades so it is almost the same thing. This way, you can brag to your friends that you are a successful trader.
20. Do you guarantee I won’t lose money?
Of course not. While we do my best to keep from losing money, we do have losses. Losses are unavoidable.
21. 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 will.