Options Trading System

Our system is very simple and easy to use. When the system generates a new signal is posted in the members' area and our system sends an email alert out. When signal is generated our trading system states what options to trade (symbol, type, strike and expiration) at what price to buy and at what price to sell. It is very simple and very straightforward.

Examples of our signals as well as examples of our email alerts could be found on our "Trading Signals Example" page.

There are many reasons why uncovered options trading could be selected over buying options. You may check comparison of buying and selling options HERE. Still you should bear in mind that Uncovered options trading may not be suitable for everyone as there is a risk involved. Plus, uncovered options are bound by high margin and some brokers may require to have trading level 5 to be able to trade it.

The basic technology behind our options trading system is volume-based technical analysis. Our charting technology allows our analysts to make informed, but still somewhat subjective, decisions as to where the market is going, and how to make trades based on the results of that analysis. Also keep mind that our trading system incorporates other forms of technical analysis.

Our trading system uses index-based technical analysis to generate signals. S&P 500 and NASDAQ 100 are the indexes we analyze.Our system collects and analyzes price, volume, and advances and declines. Consequently, we use several technical indicators to generate signals. At the same time, we monitor volatility. Some of the technical indicators that we use in our system are: Stochastics, Moving Averages, Money Flow, Advance/Decline Ratios, the McClellan Oscillator and ATR.

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.

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. You may see the signals statistics on the QQQ Statistics and SPY Statistics pages.

Depending on the particular market situation, our options trades can range anywhere from one day to several weeks. You may see the signals statistics on the QQQ Statistics and SPY Statistics pages.

We created our market timing system in early 2001 and started to apply it to the trading of QQQ and SPY options in 2003. Since then, the results we achieved have exceeded all our expectations.

You may see our past signals HERE. As well we provide trade calculator which allows to recalculate our past signals in relation to a certain start portfolio by taking into account margin requirements. See the calculator HERE. Also you may check yearly performance calculator which takes into account margin also.

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. See our Signals History. The returns in the history table do not include margin as well.

All entry and exit prices in our history are based on the price stated in the confirmation emails from the brokers who autotrade our signals. These prices are prices at which our subscribers who decided to autotrade our system have their orders filled.

Yes, we list all signals. Visit this page to see why you should trust us.

Our trading system's returns are based on the premium received for selling options short and do not include margin. As margin requirements on uncovered options are different with different brokers, it is easier to calculate our signals' returns from the options premium.

Still margin requirement are quite important in uncovered options trading and we provide trade calculator that allows to recalculate our past results in relation to the margin. Please bear in mind that the margin formula we use may differ from the one used by your broker, therefore our calculator results may not necessary match to your results.

Depending on the market volatility our system may generate from 1 to 5 signals per month.

Depending on the current market condition a system could have opened position from several hours to several weeks.

Yes, we have stop-loss parameter, and stop loss could be issued at the same time when a signal is generated. On the other hand a signal could be generated without stop-loss which could be set later when there is a need in cutting losses or protecting profit.

Our options trading system is set to generate signals for most liquid options: QQQ and SPY options. Liquidity of these options is the main reason we chose them. The second important reason to consider working with QQQ and SPY options is that these options are tied to the NASDAQ 100 and S&P 500 indexes, furthermore, index technical analysis could be used to generate signals. As a rule technical analysis applied to the indexes generates better results than the same analysis would be applied to individual stocks simply because indexes are more stable and they reflect the sentiment of the industry (market) and do not depend on a volatility of a single company.

Our system collects and analyzes market data automatically and automatically generates signals. However, after a signal is generated the system sends it to our analysts who verify and approve it before publishing it.