We’re sure some of you have questions. So, we created this comprehensive FAQ page to help answer some of the more common questions we usually receive. Please take a minute to look over these question below as you will probably find your answer. But, if your question isn’t here, then feel free to suggest a common question we can add to this list at the bottom…
What makes Option Alpha so different?
What type of online trading account will I need?
I’ve never traded before, will this system work for me?
If it’s so easy, why doesn’t everyone trade these strategies?
What if I can’t trade during the day because of my job?
When do trade recommendations and adjustments go out?
How many positions do you have open at one time?
Why do you trade options on indexes and commodities vs. individual stocks?
Are you trading with REAL money?
I’m a new member, what trading alerts should I start trading?
What is Auto-Trading and how does it work?
How much should I allocate for each trade or strategy?
Are there any drawbacks to your strategies?
Can I lose money trading options with your newsletter?
Is there a sample trade anywhere I can look at first?
What minimum account size do you recommend?
How much are your commission assumptions?
How do I cancel my membership?
What makes Option Alpha so different? Back To Top
Simple, we use simple options trading strategies backed by the simple trading indicators and seasoned market experience. Nothing fancy or weird. We have developed a trading system that is purely based on historical odds and probabilities – not hopes, dreams, and hunches. We eliminate the obstacles that have long held back self-directed traders like you. Things like confusing charts, over wordy market analysis, trading emotions that can get in the way of profitable moves and most importantly lack of individual attention to continuing your education.
What type of online trading account will I need? Back To Top
Depending on which option strategy you choose will depend on the account you need. Please contact your broker to see if our strategy is applicable to your current account or if you need to request an upgrade.
I’ve never traded before, will this system work for me? Back To Top
Yes. Our strategy based advisory services are designed so that anyone can come in and start learning and trading immediately. We offer multiple educational videos, webinars, articles and months worth of archived trading alerts and market commentary. Our advice is straightforward and clear. Whether you are a beginner or professional, you can learn to profit from our unique systems.
If it’s so easy, why doesn’t everyone trade these strategies? Back To Top
Actually there are thousands of people using these same exact strategies right now – and the numbers are growing. There are even some high profile traders who trade the same strategies but you just might not have heard about before. For example, Warren Buffet uses these exact same strategies in his company. So does Pete Najarian, a panelist on the CNBC show Fast Money along with hundreds of others that trade options for a living. They, and thousands of other traders and investors, are using options each day to grow and protect their portfolios.
What if I can’t trade during the day because of my job? Back To Top
Two solutions: auto-trading or when you get home, check your email or the member’s area for any information about new trades or adjustments. If there is anything to be done, simply log-in to 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. But like we said before, to make things even easier for you, Option Alpha offers a completely unique auto-trading service with the industries top brokers. We take the hassle of making the trade out – and let you focus on understanding the strategy. Besides, doesn’t it speak volumes that top industry brokers have put time and money into linking our trades with their customers? We think so!
When do trade recommendations and adjustments go out? Back To Top
It varies. Since we trade multiple strategies we will be entering and adjusting our positions depending on the market conditions. If something changes obviously we will always alert everyone via email and post ASAP – so keep checking back and make sure we have your correct email address!
How many positions do you have open at one time? Back To Top
Each strategy will be different of course. For Credit Spreads we may have between 2-4, Iron Condors 1-2, and Naked Puts/Calls 4-8. Remember that we like to have 2 months worth of income working in the market at all times. For example, if it’s July we would usually have positions for August and September open and working for us. As expiration months come and go we will continue to add positions as the drop off to keep our capital fully invested. It’s what smart traders do to keep their money working for them at all times.
Why do you trade options on indexes and major ETFs vs. individual stocks? Back To Top
We focus solely on trading options related to the major indexes and major ETFs. We focus on these areas for two main reasons. First, individual stocks always carry the risk of gaping from earnings reports, competitor’s earnings, management news, industry data, etc. With the indexes and major ETFs we remove this risk from our trading. Second, they are usually more active; therefore, we are able to sell option much further away from the actual market price, thereby reducing our risk. No matter how you slice it, trading our strategies is much more profitable.
Are you trading with REAL money? Back To Top
OF COURSE WE ARE! We make a living off options trading and recognize the power of our strategies for income each and every month. Without it, we would not be able to put a roof over us or food on the table – it’s serious business. Therefore, not one single recommendation we send out is for a “FAKE” or “PAPER” trade. We trade everything we send out – for better or for worse. It’s just the right thing to do.
I’m a new member, what trading alerts should I start trading? Back To Top
If you’re a new member then we typically advise starting to trade only the most recent positions. Don’t bother going back and trying to enter position from 1 or 2 months ago since they are more than likely already profitable at this point. Just start fresh with the most recent trade and build from there.
What is Auto-Trading and how does it work? Back To Top
Option Alpha members have the unique ability to have our trades automatically executed in your account. This service is completely unique among all other advisory firms and is provided only for our clients. You never have to worry about missing a trade or entering a trade incorrectly – it’s all done for you! Interested but have questions? Check out the Auto-Trading page.
How much should I allocate for each trade or strategy? Back To Top
We are not your money mangers or personal financial consultants. It depends on your own portfolio of course. Investors trading with more money might want to allocate more funds per trade while investors with a small capital base might allocate less per trade. Either way, we typically suggest you assess your own risk appetite first. Still having trouble though? Consider signing up for a 1-on-1 coaching session.
Are there any drawbacks to your strategies? Back To Top
We only trade 3 strategies for a reason. Even though we believe our option strategies can dramatically put the odds of success in your favor, it still requires good, solid market analysis. Which is of course where we come into play. The difference is really that our strategies give you a larger margin for error as compared to buying options. You don’t have to pick market tops and bottoms month after month. In addition, some people say our strategies are boring. Who would say such a thing right! We agree. But the reality is that we enter positions then wait until it expires worthless and profitable. Many traders like the constant hands-on approach of day trading and while this type of trading sounds fun and exciting, it can be VERY stressful, require HUGE amounts of capital and typically is followed by HUGE loses. It’s your choice in the end but you can see which one is better all around for you.
Can I lose money trading options with your newsletter? Back To Top
Yes. No trading system is perfect and to tell you that we have never had a losing trade would be lying. Although losses will happen, we feel that the consistent success of our strategy will MORE than make up for any small losses that we may incur from time to time.
Is there a sample trade anywhere I can look at first? Back To Top
Without a doubt. Just shoot us an email and we will forward you the most recent alert so you can see what they look like.
What minimum account size do you recommend? Back To Top
It would be easy to say that you don’t need money to start right? But that’s not the truth, again we are living in the real world, and you do need some money to start trading. The good thing is that you don’t need as much as you would think. Generally starting with as little as $3,000 to $10,000 would give you the best opportunity to make money in this market. You’re not going to make millions overnight but anything less and we would advice saving your money first, then start trading later on.
How much are your commission assumptions? Back To Top
We do not factor in commission assumptions in our advisory service. This is because there are hundreds of brokers out there and to pick one as the “standard” would either under-estimate or over-estimate our returns. Additionally we feel that most of our members are capable of figuring out what the effect of their particular commission structure would be on their account. But we do offer a “suggested model portfolio” for allocation that you can find on the performance page of the website.
How do I cancel my membership? Back To Top
First off we are sorry to hear that you want to cancel your membership…we never like to see our members leave, so if there is anything we can do that would make you stay please contact us and we will make the change right away! However, if you are adamant about cancelling your membership please contact us with the email subject “Cancellation”. We wish you the best and hope you will re-consider us again in the future!