What exactly do you trade?
Why do you not just sell these option contracts?
Is there a name for your strategy?
I have no experience in trading stocks or options, would I be able to follow your trades?
What if I still don't understand how to place the trades?
How will I be notified of a new trade?
Do you provide an Autotrade service with any brokers?
How many trades are made during each month?
When are trades opened?
How long is each position held?
When do we exit the trade?
What type of brokerage account do I need?
How much should I begin investing with?
What is the difference between index options and stock options?
Do you trade index options or stock options?
Do you actually make the same trades that you e-mail?
What are the downsides of your strategy?
What are the differences between index based ETFs and traditional indexes?
Do you have a referral program?
How do I cancel my subscription?
How do I subscribe?
What exactly do you trade? We buy and sell index options. The options that we sell are at a higher value than those we buy so we receive a credit as we open the trade. They are called credit spreads.
Why do you not just sell these option contracts? If we just sell these options, we could get a larger credit when we open the trade, but that type of trading is too risky and not for us. If the trade went against us, we would have no protection and could, theoretically, lose an infinite amount of money. By buying and selling specific options, we protect our investment by minimizing our downside risk. We are going for high probability of success trades which are a much lower risk than those with higher returns.
Is there a name for your strategy? Yes, it is called the Iron Condor and it consists of two credit spreads at different strike prices.
I have no experience in trading stocks or options, would I be able to follow your trades? Most of our subscribers started with little or no experience. Our trades are e-mailed to our subscribers with very detailed and precise instructions so that our members have no problem entering and exiting... go to our sample trade page to see an example from one of our e-mails. We first recommend paper trading and educating yourself (www.888options.com) on our strategies until you feel comfortable enough to actually make a live trade. With our trading experience though, our members have gained a comfort level with placing these trades and a substantially larger trading account to go along with it.
What if I still don't understand how to place the trades? If you have any questions or need help with a trade, it would be best to speak with someone at your brokerage firm. Each broker's trading platform is different and they would be able to assist you best.
How will I be notified of a new trade? We e-mail our subscribers with detailed instructions on how to open each trade.
Do you provide an Autotrade service with any brokers? Yes, we currently provide a free Autotrade service with ThinkOrSwim.com. Autotraders may select from any of the ETF advisories that we provide.
How many trades are made during each month? We currently provide three Iron Condor positions in three different indicies/ETFs per month. You are not required to follow all three to earn 10% per month although trading in all three will provide more diversity. Keep in mind that this will also increase commissions. You may follow one, two, or all three positions.
When are trades opened? When options reach their expiration date, we are already looking for the right entry point for the next month. You can expect to take on a trade soon after options expire which are the third Friday of every month.
How long is each position held? We hold our positions for 3-4 weeks, until expiration.
When do we exit the trade? As our strategy only requires for us to open a trade and wait until it expires, we will not have to close out the trade, again reducing commission costs. If we do need to adjust our position though, we will notify our subscribers via e-mail.
What type of a brokerage account do I need? It is very important for you to have an account with an options friendly broker that will allow credit spread trades. They will understand the Iron Condor trade and have a lower margin requirement. If you do not currently have a broker, visit www.ThinkOrSwim.com. Trading credit spreads requires some experience. Before subscribing, be sure that you have a trading level access high enough to sell credit spreads..
How much should I begin investing with? This is something that you need to figure out for yourself, depending on your situation. Most of our subscribers have started out with $10,000 or $20,000, making $1000 to $2000 per month. Anything less than $5000 may result in noticable reduced returns since you will have to pay your broker their commission. Be sure that you DO NOT invest your entire portfolio. You MUST keep some cash aside just in case we need to adjust any positions. NEVER put everything in one basket.
What is the difference between index options and stock options? Stock options are option contracts for a particular company such as eBay or Google. Index options are contracts for a particular index such as the DJIA, Nasdaq, etc.
Do you trade index options or stock options? We trade index options and index based ETFs because they are less volatile than an individual stock. Indices consist of a number of stocks weighed together in one basket. If one stock in that basket has some negative news come out, the odds of the entire index trading downward is not likely. These are also more liquid giving us better prices for when we open the trades.
Do you actually make the same trades that you e-mail? Yes, we have been making these trades in our own accounts before this website was even created. We had tried many other systems being advertised out there and found our's to have the highest success rate with a reasonable return. We created this website to help the average investor by saving them from the high stress and probability of losing money with those other systems, as well as educate them of the strategy the pros use.
What are the downsides of your strategy? It is boring... very boring. We open each position then wait until it expires. Many traders like the constant hands-on approach of trading a few times a week or even per day. That type of trading IS fun, but can be VERY stressful, require a lot of capital, and/or demands a lot of your time. Most of the professionals live for that. Just look at the floor of the New York Stock Exchange... everyone is yelling and screaming orders at each other. It's a very high octane lifestyle. We don't like that as it comes with higher risk.
What are the differences between index based ETFs and traditional indexes? Visit our ETFs VS Indexes page for a side by side comparison.
Do you have a referral program? Yes we do! We understand that the best way to grow a business is to provide a great service and to have customers refer us to others. We have developed a program to reward those that help us grow. For more information, visit our Referral Reward Program page.
How do I cancel my subscription? If, for any reason, you do not wish to participate in our system any longer, just send us an e-mail with your request to cancel. Your cancellation will be effective immediately... no questions asked.
How do I subscribe? Just click on the "Subscribe" button below.
