Option Scientist Joins All About Trends!
Welcome To Fun Money — your source for enjoying profits from options trading!
Just $10/month for the first two months then $49.99/month.
What you get:
1. A complimentary subscription to the All About Trends newsletter — a newsletter each weekend and each trading day that provides technical analysis on the indexes and specific stocks. Each newsletter contains a watch list of stocks and positions from Trade Trigger email alerts sent to subscribers. We will use the watch list and current positions list from this newsletter as the watch list and trading source for Fun Money.
2. Emails with our exact option trade.
Brief Excerpt From This Weeks Newsletter: Click here to sign up!
Looking a lot like capitulation (the opposite of a climax run). A tag of the blue level has us interested in buying calls according to the following strategies:
Strategy 1. Buying two straight calls in that range, selling one when the price of the calls double and letting the other run as the stock runs to lock in a nice gain knowing that your original investment is covered by selling the one call so there’s no more downside risk and you can only profit or break even. The reward here is should AAPL put on 50 points or so in a few days, you are in position to profit nicely. The risk is AAPL continues to fall and you lose your initial investment or it is flat in which the price of the calls experiences time decay.
Strategy 2. Buying a spread.
BUY 1 Nov $535 Call ($18.25)
SELL 1 Nov $560 Call ($5.25)
The November calls are a good choice here given the poor performance of AAPL over the past few weeks. Using the December calls does not significantly increase the profit potential, but requires a much longer holding period in order to recognize any gains. If necessary, the trade can be rolled out to December in order to continue looking for gains. The reward is that AAPL remains steady or rises before the November expiration. The risk is that both options expire worthless and the net premium paid is entirely lost.
How Our Service Works:
1. Each trading day and on Sunday, you’ll receive the All About Trends newsletter via email. You can also log into our subscriber site to access this information with your Fun Money username/password.
2. Fun Money trades will be sent to you via email with the following info:
- What options we are buying, strike price and the date of expiration
- How many options we are buying
- The price we are buying the options at
3. When we are ready to lock in our gains we will issue a “Locking In Gains” email message.
4. If an option becomes a losing position and we are ready to walk away or let it expire worthless, we will send you an email noting that.
Start earning more money—sign up here
Click here to see a spreadsheet of our trades since March 19.
“I love this process of yours! I bought my calls at $1.36 and sold 1 @ $2.61. Very low stress!!!” Pat — Raleigh, N
I’m liking this new service,” Bob — Aiken, SC
Our Game Plan — Keep It Simple, Easy and Fun!
1. We are going to start with a portfolio of $10,000. We will never have all of this invested, it’s just a starting balance and a place for us to define our risk. It’s also a way for you to get started in options without throwing your entire portfolio at it.
2. Typically we will be only investing in names featured in the All About Trends newsletter, however special situations can and will arise where we will invest in other names. Options will be bought typically in high-beta stocks with a lot of scale.
With options, it’s all about getting points. So a 1% move in a $400 stock is 4 points, where to get 4 points from a stock that’s priced at $40, you need a 10% move.
3. We are going to invest no more than $250 in each trade. We will either lose all of it, wash on the trade or make money — the worse thing that can happen is we lose all of the $250. That low risk level allows us to be free from our emotions and objectively trade what we see and then let the market do the work for us.
4. Rather than force things and trade for trading sake, we’re going to let the trades come to us all based on chart pattern recognition as defined in the All About Trends newsletter.
Typically, we are only going to take a trade if a stock is at support (we buy calls) or resistance (we buy puts). For the most part aside from special situations, if those circumstances aren’t there, we sit in cash and wait. This means there will be times that we are quite active and there are going to be times where we don’t do much if anything at all.
The key to making money in options is having a stock move in our favor ideally as soon as we place the trade — the longer it takes, the more time becomes a factor and in the world of options, time is our worst enemy.
5. We are going to buy out of the money calls or puts, ideally those with weekly expiration. Why? Because out of the money weekly expiration options are the most inexpensive. We’d rather buy 5 calls or puts at 50 cents and risk only $250 then buy 1 or 2 in the money calls and risk a lot more capital. And if we buy only at support or resistance, odds favor the stock will move off of those levels which makes time less of a factor.
6. When we have doubled our money, we will most likely take half of our profits off the table and let the rest ride. This way, we guarantee that we at least break even and then have the opportunity to make a significant profit on the rest without the stress of losing money. The key is to string together a series of trades yielding at least $250 or more in profits. The longer we hold, the more time becomes a factor and time erodes options prices even if the stock is still rising or holding steady. The principle of “Smoke ‘Em When You Got ‘Em” that is often touted in the All About Trends newsletter is most important here.
In addition, the decision to lock in gains will depend on the following:
- Where the stock is priced compared to the strike price
- How much time we have left before the options expire
- The technical state of both the markets and the stock
How To Sign Up
1. Click here to sign up for the options service.
2. Complete the form to give yourself a username/password to access our subscriber web site
3. Complete the text message form with your phone # and the name of your service provider (refer to list above)
4. Agree to the terms and conditions at the bottom of the form, then click on the “subscribe” button at the bottom right of the page to go to the payment form
5. Complete the payment form — for privacy reasons, all subscriptions by secure financial transaction service provides so All About Trends has no access to your financial records. You can pay with a standard debit or credit card or with your Paypal account — if you choose to pay with your Paypal account, you’ll select that option in the drop down menu. If you want to pay with a standard debit or credit card, simply select the card option you prefer (VISA, Mastercard, AMEX or Discover).
6. You’ll then receive an email to confirm your email address. This is extremely important so you can receive the All About Trends newsletter to receive our watch list of stocks and daily commentary. To do so simply click on the link in that email and you’ll be all set to receive our materials via email in addition to accessing them online.
The Risks — Please read this carefully before subscribing!
Make no mistake about it — investing in options is extremely risky. There will be many times that trades we feature will go to zero and we will lose all of our $250. Look at the track record spreadsheet and you will see there were numerous trades that went to zero. The reasons for this are two-fold:
1. The stock moves in the opposite direction we wanted it to.
2. Since we are buying out of the money calls or puts, the stock may never reach the strike point we purchased our options at before time runs out.
This is a fact of life with options and there’s no way around it. It’s considered good when 50% of your options trades are profitable. But the key is making more on your winners and risking no more than $250 on each trade — so your losses will never be more than $250 per trade and the potential for profits greater than $250 is significant.
The key is to string together a series of trades that at least double in price and keep our losses small and infrequent.
Above all don’t forget trade size risk management is key. Never biting off more than you can chew makes all the difference when things go against you and they will make no mistake.
This is not something that one’s serious portfolio assets are to be employed into. We can not stress this enough. This is why it’s called “fun money” because you are using ONLY an extremely small amount of one’s overall portfolio. Stick to the guidelines we’ve laid out.
Past performance is no guarantee of future success, people can and do lose money in options and so will you. If you are not familiar with the characteristics and ins and outs of options do not subscribe. You must have a thorough understanding.