FAQ

Question?

Answer

  1. Q.I am completely new to Options Trading. How do I learn about them?

    I provide easy-to-follow directions for each trade, how to select, order and adjust credit spreads and covered call. With little or no experience trading options you can process these trades with any options brokerage service. During the 60 free trials you can practice paper trading all my trades. To learn more about options you can start with the free courses at the (ASX) http://www.asx.com.au/resources/online-courses.htm. You can start at the Learning Centre taking the online tutorials.

  2. Q.What kind of brokerage account do I need?

    You need to have a brokerage account that allows you to trade options, credit spreads and covered calls. Your broker must understand 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 ASX website http://www.asx.com.au/resources/online-courses.htm for options trading you will find a list of option trading brokers.

  3. Q.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 option does not go past the sold strike price at the end of expiration you will receive a full credit winning trade.

  4. Q.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 approximately be 2% on each spread trade and approximately 1% on each Covered call 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 a credit option the probability of doing so is very rare and only happens in an instance of a market crash.

  5. Q.Can I reinvest my profits each month?

    The money is yours. This will be entirely your decision.

  6. Q.How much is your service?

    The subscription fee is $99.95 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.

  7. Q.How 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 $25,000 - $50,000. However, you can get started with less by executing a lower number of contracts per trade. You should always keep 20% or more in reserve for adjustments.

  8. Q.How long is the average holding period?

    Approximately 20-40 days.

  9. Q.How many trade alerts are provided each month?

    I will email and post in the member's area 4 to 6 covered call, Credit Spread Trades per month, on the same exchange traded option, 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 an option.

    Click here to see what an actual trade alert and order ticket looks like.

    Click here to see a recent Weekly Update that is emailed and posted to the Members Page each weekend.

  10. Q.Do you trade your own credit spread and Covered call Trades?
    I will disclose to you any conflicts of interest that arises from my recommendations.

    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.

  11. Q.What 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.

  12. Q.Do 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.

  13. Q.What is the ASX?

    The ASX is the of Options Exchange - the largest options trading floor in the Australia. The ASX 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. http://www.asx.com.au/resources/online-courses.htm

  14. Q.Can I trade credit spreads in my SMSF?

    Yes. The options brokers I have traded with allow you to trade credit spread in your SMSF as long as your account has cash component.

    In addition the fact that it must aligned with the SMSF's investment strategy.

  15. Q.At what time do you send emails to subscribers?

    I email and post in the member's area new trades, trade adjustments and updates in the evening and on the weekends.

  16. Q.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.

  17. Q.How 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. All subscribers can practice using my trades for 60 days. If more than 60 days is needed I will extend the free trial period for an additional 30 days. While you are paper trading I will not charge you any subscription fee. Please request an extension at anytime by sending me an email.