Q: Why not just simply buy a call or a put?
A: Because 77% of all options expire worthless per a 3 year study conducted by the CME (Chicago Mercantile Exchange). This means that on any given options trade, the option buyer has only a 23% chance of success, while the option seller has a 77% chance of success. So, given that most options expire worthless, we put the odds in our favor by putting an emphasis on collecting premiums from selling options rather than just simply buying a straight call or put.
Q: Do you sell naked options?
A: We NEVER sell naked calls. Sometimes, however, we'll sell a naked put at a strike price that we think is a great place to own the stock.
Q: I've never traded options, can I use your service?
A: It’s great if you already have experience trading options, but we do all of the work so you don’t have to think about the trades or even know anything about trading options. All you need to do is call your broker and read him our trade details and have him execute the trade. Additionally, you can set up your, TradeMonster, eOption, or TradeWallStreet brokerage account to "auto trade" each of our trades... this way all you have to do is sit back and watch your account grow.
Q: How can I learn about trading options?
A: Thanks for your interest in wanting to learn about options trading. With theOptionWiz, you’ll get specifically tailored trades, configured to reduce risk and greatly improve the probability of a profitable trade. It’s great if you already have experience trading options, but we do all of the work so you don’t have to think about the trades or even know anything about trading options. Between us, we’ve got 29 years of options trading experience, allowing you to immediately benefit from our knowledge and understanding of options, which can and do cause tremendous losses to novice options traders. So, sign up for a membership and trade along with us. You’ll make money right away trading options and you’ll learn more and more with each trade you participate in.
Q: Do you provide stops for each position? Is there a general rule for a 10% trailing stop or do you not want to be stopped out and leave the stop decision to the subscriber?
A: Unlike stocks, options are subject to wild intra-day swings. In fact, its not uncommon for an option to fluctuate by 20 to 30% up or down during a single day. Therefore, we do not place hard stops on our trades. If you look at our trading record, you’ll see that we do occasionally close out a trade for a loss, but we only do so when it seems clear that the underlying stock or ETF has moved far enough against us. Remember, our main premise is that nearly 80% of all options expire worthless. That means that even if we’re wrong about a stocks direction, we still have a nearly 80% chance of making a profit from the trade. Additionally, we structure our covered calls and many diagonal spread trades such that we theoretically never need to close the full position for a loss. Lastly, our service takes care of all of the guesswork for you. Prior to entering or closing any trade, we notify you first.
Q: Do you offer Auto Trading?
A: Yes. You may have each of our trades auto traded with your TradeMonster, eOption, or TradeWallStreet brokerage account.
Q: How much is a subscription to The OptionWiz?
A: In all candor, at $89 per month, we're practically giving away the service. We're professional traders with a combined 29 years of experience. A subscription to The OptionWiz affords you hedge fund-like management for just $89 per month. With many of our competitors charging $200, $300, and even $400 per month, why are we charging so little??? We want to make our service affordable for all investors, not just high net worth individuals.
Q: Do you offer a free trial?
A: We do not. Frankly, if you're unwilling to risk less than $100 on a service that consistently generates money making ideas, then you simply should not be investing in the stock market.
