Trading Results
Our non-compounded options trading results differ
from other services in four key areas.
- We only report trading results for option suggestions that were ACTUALLY FILLED – NOT HYPOTHETICALLY. After all, getting filled is what counts.
- We report trading results based on the suggested limit price. We realize that some of our option suggestions may get filled at a better price than suggested, but we choose to report results based on the limit price which reflects the “worst case scenario.” This ensures that everyone can realistically get filled. Many other publications base their trading results on hypothetical or unrealistic prices, such as “best possible price” or “average price.”
- We include the cost of doing business – the brokerage costs associated with trading. These costs like commissions can make a big difference to the dollar and percentage returns in your account.
- We show EVERY option trading result – not just a selection of results. We show the good, the bad, and the ugly.
To the best of our knowledge, we are the only option trading publication that reports results this way. Why do we report the way we do? Because we believe reporting honestly and accurately is the BEST AND ONLY WAY to measure results.
However, our reporting method does put us at a disadvantage when you try to compare our results to other option trading services because … well frankly, it’s like comparing apples to oranges.
Our reported options track record include the following costs and are based on the following assumptions:
- Option suggestions are reported based on the limit price or “worst case” scenario. In other words, you might get a better price but we report based on the suggested limit price.
- Commission costs are included. (Commissions on options = $1.50 per contract, minimum $14.95 and commissions on stocks = $9.99)
- Assignment costs are included. (Assignment cost per strike = $15)
- Margin calculations for spreads are assumed on one side. (Based on spread width minus premium received on one side – the larger side).
- Returns are not compounded.
- $5,000 per suggestion is used for establishing each suggestion (an arbitrary figure strictly for simplicity and illustration purposes).
- Percentage net gain is based on margin requirement or actual cost.
- Results are reported when suggestions are changed, closed, expired, assigned or exercised.