When our options trading system generates a new signal, for those subscribers who do not autotrade our signals we state alternative options for trading as "Alternative Riskier Options" and "Alternative More Conservative Options". The idea behind alternative options is quite simple and trading the alternative options is quite easy. An options trader who made a decision to follow our signal may simply trade alternative options instead of the options stated in our signal.
Alternative options are simply QQQ or SPY options that may be traded in place of, or in addition to, the "regular" QQQ or SPY option for which we have issued a trading signal. The use of alternative options allows to tailor the trading to better suit the personal risk profile. A trader can choose among a selection of several alternative options; these range from conservative (lower risk) options to options with a higher degree of risk.
Trading alternative options is easy. Rather than placing a trade based on the "regular" option for which a trading signal has been issued, an investor can simply sell one of the alternative options listed in its place.
We will always initiate a position in accordance with our "Suggested Entry Price". Once this price is hit, we will establish a position in the main option. This would be the signal for alternative options as well. A position is initiated in one of the alternative options at market once the "Suggested Entry Price" for our main option has been hit.
Similarly, note that we always close our option positions in accordance with the "Suggested Exit Price". Once this price is hit, we close out our position in the main option. This would be the signal for alternative options as well. The position is closed in one of the alternative options at market once the "Suggested Exit Price" for our main option has been hit.
One of the main advantages of trading alternative options is that a trader can choose the particular option that best suits his/her risk tolerance.
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.