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. Wetry to personally help every member that
needs it, but our time is limited.
2. 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.
3. We 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 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
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
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
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.
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.
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.
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.
If you are even in doubt, we are only an email
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 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.
What if the market goes crazy again like in October
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.
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.
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.
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.
Do you trade these same trades in your account?
Yes. we place every trade that I release to members.
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.
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 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.
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.
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?