FAQ: Trading Signals

• When do you update your signals?
• What do you do when your signal displays "Sell Calls", "Sell Puts", or "New Exit Price"?
• How many trades per month does your system generate?
• How "short-term" are your options trades? I mean, how many days can I expect to hold on to a position?
• Do you issue stop-loss orders for your options signals?
• Have you back-tested your QQQ options trading system?
• How do you calculate your returns?
• Why most of your signals are "Sell Short Puts"?
• What is the recommended minimum $ amount for your system?

When do you update your signals?

Our signals may be updated at any time during trading hours (email-alerts are issued immediately thereafter); in addition, we update them daily by 8:45 PM EST.

What do you do when your signal displays "Sell Calls", "Sell Puts", or "New Exit Price"?

When we publish a "Sell Call" signal, this means we will be selling short call options once the price of those options trade at or above the "Suggested Entry Price".

When we publish a "Sell Put" signal, this means we will be Selling put options once the price of those options trade at or above the "Suggested Entry Price".

When we publish a "New Exit Price" or "New Stop-Loss Price", this means we notify all our members about changes in the "Suggested Exit Price" and "Suggested Stop-Loss Price". Depending on the current market situation, we may change a Exit and Stop-Loss prices after a trade has been opened. For example, if the market goes against our trade, we may change the exit or stop-loss price in order to reduce losses. By the same token, when the market continues to move in our favor, we may change an exit Price in order to increase profits.

How many trades per month does your system generate?

Depending on the particular market situation, you can expect to make about 1 - 4 trades per month. It does not mean that we are constantly in a position, there are could be situation when we may stay in cash for a one -two weeks and even more.

How "short-term" are your options trades? I mean, how many days can I expect to hold on to a position?

Depending on the particular market situation, our options trades can range anywhere from one day to several weeks.

Do you issue stop-loss orders for your options signals?

We may issue a new "Suggested Exit Price" or we may issue a stop-loss, which can be adapted as needed, based on new market information. By doing so, we can minimize the risk incurred by our subscribers. If we make changes the our "Suggested Exit Price" or "Suggested Stop-loss Price", you will always be immediately notified by email.

Have you back-tested your QQQ options trading system?

We show an actual history of real-life options trades that were made using our QQQ and SPY options trading system. See for yourself what kinds of returns we are making. Click here to see our trade history

How do you calculate your returns?

The "Trade Entry Price" is based on an option's actual market price at the moment it trades at or above our "Suggested Entry Price". The exit to cash price is based on the actual market price at the moment an option trades below our "Suggested Exit Price" or above our stop-loss price. The percent growth figure in the table above does not represent a compounded rate of return; it shows a summary return. Signals History. The returns in the history table do not include margin as well.

Why most of your signals are "Sell Short Puts"?

The main reasons of using naked puts versus naked calls are:

1. Smaller margin requirements;
2. Less risky;
3. When put options are exercised an options seller is obligated to buy underlying stock and still may participate in signal by selling the bought stock when signal is closed. When calls are exercised the position is closed immediately.
4.  Some broker may allow using naked puts in IRA because it could be considered as long trading and at expiration a put seller would buy underlying stocks.

What is the recommended minimum $ amount for your system?

Uncovered options trading has certain margin requirements. We may recommend to contact your broker first to see how many options contracts of a specific strike you may sold short. As a rule we recommend having enough funds to be able to sell short at least 7-10 options contacts. The easiest way to find out how much it could be is to use "Trade Calculator" or "Virtual Trading" (majority of online brokers have it) and imitate one of our signals.