FREQUENTLY ASKED QUESTIONS
Is auto trading available with your service?
Yes, thru the courtesy of Global AutoTrading. Global AutoTrading specializes in auto trading equities and options, including fast-moving instruments like spreads and other combinations. Global AutoTrading uses several brokers, such as Interactive Brokers offering low commissions that start from $1 per equity trade and $0.70 (plus exchange, regulatory, and clearing fees) per option contract (and lower, the more we trade each month). Likewise, Global AutoTrading also uses tradier.com which offers flat monthly rates of $20 per month for all you can trade equities, and $40 per month for all you can trade options (+ exchange and regulatory fees).
Do you offer a free trial subscription?
Yes, we do. The first month’s subscription is FREE. Billing will automatically start on the second month and every month thereafter. Keep in mind our trades are not of short duration like directional trades. In order to make the most of our system, it is recommended to stay and follow the system for a few months to achieve maximum benefits.
Who should be using your options investment system?
Definitely not those looking to make short-term quick profits in the stock options market. Our program is intended for those who seek a safe, low-risk investment vehicle to grow their capital steadily over a period of time.
How much capital do I need to get started selling options?
This is one of the most asked questions by our subscribers. It really is hard to say how much capital you need since this all depends on how many contracts you trade on each transaction and if you use margin in your trades. Conservatively, for one using 100% cash to cover every put sold and following every trade we make, you would need at least 40-50K in your broker account. Obviously, not all subscribers follow every trade we do so his capital requirements would be much less than this, say around 10-20K. Using margin to finance each trade substantially lowers the required capital but exposes you to the risk of not having the necessary cash to cover a margin call should the put option go deep ITM. We use 50-70 percent margin on our trades but this is only recommended for those who have extensive experience in selling puts and know how to manage their net margin position. Careless use of margin can lead to serious problems.
What percentage return can I expect to make from your system?
It all depends on which cash management system you use. If your brokerage account is strictly a cash account where you cover your sold puts with 100% cash, your returns will be much less than if you have a margin account. With 100% covered puts there is no risk involved except for the fact that you might end up having to own the underlying stock if you consider this a risk at all. Using margin enables you to have a lot more options buying power but you may have to take on the risk of a margin call if you don’t have enough cash to cover an assignment. The short answer to this question is you can expect annual returns of around 15-20 percent using 100% cash covered puts and more than 35% annual return using margin.
How much knowledge and experience is required to be a successful option seller?
For starters, you definitely need a good grasp of the essentials of options and you need to be very familiar with the basics of how options operate. As to experience, it’s certainly helpful if you are currently doing some trading in options. If you are totally new to options and have not done any options trading at all, it’s not a good idea to start your options trading exposure using our system.
What type of options do you trade and recommend? Indexes, stocks, ETFs?
We trade all three but do most of our trades with stocks.
Which options trading system do you use?
Mostly we sell put options. We seldom use any other trading system since we have already proven to ourselves that this is the best strategy for a consistent earning system with very low risk on capital.
How often do you trade? Do I need to be at my computer every minute the exchanges are open?
We don’t trade and send out signals every day just for the sake of doing a trade. Trade opportunities don’t come daily, more so when the market is bad. In a normal or hot market, we may send out several signals in one week. We do send out email signals whenever we need to make adjustments to our existing open trades or if we need to inform members about certain actions that we take or intend to take. We believe all advisory services operate in a similar manner.
How will I know when to trade?
We send out our signals via email. When to enter, when to adjust, when to close. You must ensure you have a working email system that catches all our emails.
What happens if I miss a trade signal?
In many instances, you can chase the trade by placing an order at the same price as the signal. Unless the market makes a very dramatic move your order will likely be filled eventually. Another way is to place a similar trade to the signaled trade at a slightly different price.
For example, if our signal said to sell BAC Sept 30 put at $0.55 and you missed the email, you could still place your order to sell BAC Sept 30 put at a slightly different price like $0.40 or $0.60 as the case may be.
Does your system guarantee profits or capital appreciation? How about when the economy goes into recession and the markets are depressed?
Nothing is guaranteed in this life except death and taxes. Even real estate, which was regarded by many as the ultimate sure thing when it comes to appreciation values, has its downturn. This was clearly demonstrated by the real estate crash of 2007-2009. In a situation where the stock market goes in a swift and deep decline such as that of September–November 2008 our system will suffer a similar effect. But we hasten to add though, that if the option seller does not panic and stays in the game s/he will recover much faster than if s/he were in any other investment.
Subscribe now and be a consistent winner on your option trades!