Suggested Entry and Entry Prices.

Suggested Entry Price.

At the time a signal is issued, we state a "Suggested Entry Price". When an option trades at or above that price, we buy it.

Once we issue a "Suggested Entry Price", we do not change it under any circumstances since any changes would also require a change to our "Suggested Exit Price", altering the signal completely. If our analysis shows that it should be changed, we will cancel it and issue a new signal.

We will notify all our members about such changes by e-mail and post the new "Signal" on the current signal page.

Question: Can a trader use your signals to trade options with expiration dates that differ from the one you suggest?

Yes. A trader may choose to trade options with a later expiry date (thereby increasing premium that could be received for selling options short). In this case to follow our signal a trader has to open a trade when we send out the alert which indicates that we opened a trade in accordance to our signal.

Important:

We do not recommend trading options that expire in less than a week. The premium for selling options short could be too small which could not be worth risking

Entry Price.

The entry price is defined as the actual price of an option at the moment a trade is opened.

The entry price is usually equal to the "Suggested Entry Price". It could, however, be substantially higher when a trade is opened when the market opens significantly above the "Suggested Entry Price".