What level of proficiency do you suggest for your trades?
All that’s required to place the orders contained within the alerts is the ability to build a complex options order ticket (a 2-legged, 3-legged, or 4-legged spread) in your platform of choice. I use thinkorswim to trade, so I send out the orders in a format that allows direct copy and pasting into the platform.
In terms of understanding the trade plans and why we’re doing what we’re doing, you’ll derive the most benefit from knowing about vertical spreads, condors, and butterflies. I recommend that you understand the basic greeks as well (delta, gamma, theta, and vega).
Can you prove your results?
Lots of sites will offer great numbers and no proof to back them up. Unfortunately, we are one of them. We trade in a mixed account with other trades and strategies not shown on the site, so there’s no way to segregate one trade from another, at least from an official brokerage statement perspective. For what it’s worth though, we do absolutely trade these strategies live, and the fills shown in e-mailed alerts are not hypothetical fills.
How often will I get trade alerts?
It depends on the trade. The most frequently we will send out alerts would be once per day for an adjustment. We generally adjust EOD, around 30 minutes before market close, but might adjust earlier in the day depending on a variety of factors.
What’s different about your service?
Most alert services fall into two categories:
1) Long or Short some equity via some basic options spread. An alert might suggest selling an OTM credit spread on Apple based on some voodoo or technical analysis, or upcoming earnings or whatever. Most of these strategies rely on correctly choosing the future direction of the underlying, or a well designed plan for cutting losses and letting winners run. Most companies don’t have that together, and a trader often doesn’t have the psychology to trade that way during his/her trader development phase.
2) Monthly iron condors on an index or ETF. Many small winners and the occasional huge loser. This is a psychologically scarring way to trade. And if you happen to start with the alert service during a losing month, you’ll spend many months digging out of that hole due to the nature of iron condors. There’s a popular saying among iron condor traders: “Eat like a mouse, shit like an elephant.”
We offer neither. Our strategies are designed for index trading, but the average losing trade doesn’t overwhelm months and months of winners like an iron condor strategy. We also don’t rely on picking direction (the strategies are direction-neutral with a slight tilt at times) and understand the impact of implied volatility on our trades. (Many alert services ignore volatility altogether, or don’t even understand it, which is akin to flying a plane without knowing what an altimeter is.) Our trades have lots and lots of breathing room to allow the market to fluctuate while staying in the trade and maintaining control over the greeks profile.
We’re happy to answer any questions you may have. Click here to send us an e-mail.