ETF Option TradesProfitable Options Trading For Everyone! |
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I am completely new to Options Trading. How do I learn about them?I provide easy-to-follow directions for each trade. In the Member's Area their will soon be learning tutorials and flash movies that illustrate how to select , order and adjust credit spreads and Iron Condors. With little or no experience trading options you can process these trades with any options brokerage service. During the 60 free trial you can practice paper trading all my trades using CBOE's Free Virtual Trading system. To learn more about options you can start with the free courses at the Chicago Board of Option Exchange (CBOE). You can start at the Learning Center taking the online tutorials.What kind of brokerage account do I need?You need to have a brokerage account that allows you to trade options, credit spreads and iron condors. Your broker must understands options and provide good options support. There really can’t be a substitute for this requirement. The last thing that a new subscriber needs is a broker who’s really not experienced enough or equipped well enough to assist them with their option trades. From the Getting Started page you will find a links to the most popular brokers for options trading, including CBOE 's free Virtual Trading system. You can use this virtual system to practice executing, adjusting and exiting trades without risking your money.What exactly is a Credit Spread Option Trade?It is a trade in which you buy an out of the money option at a certain strike price and then you sell an out of the money option at a different strike price of the same month. As time goes on the options will decay in value and as long as the price of the exchange traded fund does not go past the sold strike price at the end of expiration you will receive a full credit winning trade.What's the advantage of a Credit Spread Option Trade?If you like the idea of knowing exactly what your profit will be, exactly when the trade is closed, and exactly how much money you will risk then credit spread trading is for you. Your return will at least be 4% on each spread trade and 8% on each Iron Condor trade. There are techniques for changing your trade if it becomes a losing trade to help you recover some of the loss and in some cases even make it a winning trade again. Also a credit option trade is less volatile than individual stock options. A stock can move up or down 10% or more in a given day, whereas with an index the probability of doing so is very rare and only happens in an instance of a market crash. Back to the TopCan I reinvest my profits each month?The money is yours. This will be entirely your decision. Back to the TopHow much is your service?The subscription fee is $59.95 per month. You will automatically receive a 2 month free trial. If you decide to stay on past the 2 month trial a monthly subscription fee will be processed by PayPal. You may cancel your trial or subscription at any time by simply sending me an email. Once I receive your email I will immediately cancel your subscription and you will not incur any further charges. Back to the TopNo one offers a guarantee so why do I do this?I am very successful and do not feel it's right to collect a fee when the net of all my trades is a net loss. Their will be instances when one trade's loss is more than offset by another's profit. My goal is to earn a net profit for the month. I will occasionally adjust a trade to breakeven and prevent a loss. Back to the TopHow much money do I need?You will need at least $5,000 per trade to have a decent monthly cash flow, which means a portfolio of $5,000 - $20,000. However, you can get started with less by executing a lower number of contracts per trade. Only 10% or less of a trading account should be tied up in any one trade and you should always keep 20% or more in reserve for adjustments. Back to the TopHow long is the average holding period?Approximately 40-30 days. Back to the Top
How many trade alerts are provided each month?I will email and post in the members area 2 to 3 ETF Iron Condor trades per month. Each Iron Condor trade consists of 2 Credit Spread Trades on the same exchange traded fund, a Bull Put Credit Spread and a Bear Call Credit Spread. Most of the time I will execute both spread orders at the same time for a fund. This immediately completes an Iron Condor trade. Other times I might execute either the Bull Put or Bear Call Credit Spread trade first and then follow a few days or week later with the other trade to complete an Iron Condor. Back to the TopClick here to see what an actual trade alert and order ticket looks like. Do you trade your own credit spread and Iron Condor Trades?I began this website after years of trading credit spreads in my own accounts. Since I am now a full-time trader, I would be entering these same trades regardless of this website. But after years of my own success, I decided to try to help others obtain financial freedom on their own while hopefully educating them along the way. There are a number of other sites that kick out tons of recommendations every month but never actually enter the trades themselves. That’s why I offer a FREE 60 day trial and even post my track record for you to see the difference in my site. Back to the TopWhat information is in the emails with the new trades?I indicate the exact options to sell and buy for each spread trade and a stop loss point. My system is very automatic and very risk adverse. Emotions play no role in my option trades and exits. Back to the TopDo you offer auto-trading?I feel it is important that subscribers who can, should participate in executing their own option trades. I will help subscribers learn to trade credit option spreads with Flash movies that illustrate how to select, order , close and adjust these trades. Back to the Top
What is the CBOE?The CBOE is the Chicago Board of Options Exchange - the largest options trading floor in the world. The CBOE has free, self-guided tutorials that teach you the basics of Calls and Puts, the intricacies of the marketplace, and the strategies used by options investors. Back to the TopWhat if another event like 9/11 hits the market?Of course no one can predict the future. However it is a good idea to limit your risk and exposure in the market is case an event occurs that causes the market to decline dramatically. All Put Spread Trades should be protected with the Stop Loss orders I recommend. These orders are easy to put in place once your spread order is filled. If the market does drop dramatically your stop loss order will be executed automatically by computers and your Put Spread will be closed. Back to the TopCan I trade credit spreads in my IRA?Yes. The options brokers I have traded with allow you to trade credit spreads in your IRA as long as your account is all cash. This is a federal requirement. Also, most brokers will let you use 50% of invested capital in non IRA accounts for margin. Back to the TopCan I trade if I live in another country?The US has the most liquidity of all the markets, which makes it easier to trade stocks and options. Many subscribers process my trades from other countries. Brokers like InteractiveBrokers.com are worldwide, so most can trade US stocks and options with them. Back to the TopWhat is the downside to this trading strategy?It is very boring. Trades are placed once a month and left to expire. Because my trades to very far out of the money (FOTM) they have a very high probability of expiring worthless. Back to the TopAt what time do you send emails to subscribers?I email and post in the member's area new trades, trades adjustments and updates in the evening and on the weekends. Back to the Top
If I refer friends and business associates to your service what is my reward?For every new subscriber you refer you will receive 2 free months. I will send you 2 PayPal rebates of your monthly subscriber fee. Back to the TopHow long can I paper trade to learn how to select , order and adjust credit spread trades?Paper trading is the best way to learn. I encourage all new subscribers to paper trade for as long as they need to before trading with live funds. This is very easy if you do not have a brokerage account setup. CBOE has a free virtual trading system that you can use without having a brokerage account. This is the same system as OptionXpress's virtual system. All subscribers can practice using my trades for 60 days. If more than 60 days is needed I will extend the free trail period an additional 60 days, or as long as needed. While you are paper trading I will not charge you any subscription fee. Please request an extension at anytime by sending me an email. Back to the Top |
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