Terry allen options trading
One interesting options trading service that's been around a while is the one run by Terry Allen StockOptionSuccess. It's also sometimes known as Terry's Tips. I've developed my own unique approach of using options as a long term investing tool that I call Leveraged Investing. It's all about using options to acquire high quality stock at a discount and then squeeze extra returns from that stock repeatedly over time.
I think it's a great strategy, but I've found that it really only appeals to those personalities who just genetically seem to have a long term perspective. Now, I'm fully aware that most participants in the stock market are hardwired more to be traders than investors.
Nothing wrong with that. Even though I fall on the investing side of the equation, I don't believe that my customized investing approach is somehow morally superior to short term trading. What's most important is that you align yourself with the approach and techniques that most closely match your own personality and hardwiring. If you're interested in trading options, one strategy you'll most likely consider at some point is calendar spreads.
Calendar spreads aren't particularly difficult to understand. If you get covered call writing, calendar spreads work on the same principle. The gist is this: So all you have to do then is buy long term options and simultaneously sell short term options, pocketing the difference between the two rates of time decay. With covered calls, you're writing short term calls against the underlying stock.
With calendar spreads, you're basically doing the same thing except instead of owning the stock, you own LEAPS, or longer term options that may not expire for a couple of years.
LEAPS cost a lot less than buying the actual stock. Granted, there is no time decay with owning actual shares of stock, but with slow-decaying LEAPs, you end up controlling a lot more shares for the same amount of money. And that means your potential returns are considerably higher.
If you're new to calendar spread trading, don't just rush out and start experimenting.
I've only given you the basic premise of the strategy, not all the ins and outs. These don't have to be high-risk trades, but unless you know how to safeguard yourself, you'll likely end up making some costly mistakes. So StockOptionSuccess, or Terry's Tips, is an advisory service that essentially specializes in calendar spreadsor capitalizing on the different rates of time decay between long term options and short term options.
The prerequisite to membership is purchasing Terry's "Options Strategy Report" White Paper. And when you download the White Paper, you also get a free membership for two months to his site.
Membership includes what he calls an "Options Tutorial Program" with access to live accounts - some of which are targeted to double within 12 months - that you can track and mirror yourself and there's both email trade alerts as well as an auto-trading feature.
Now the important questions - who is Terry Allen and how does his service and White Paper stack up? I admit, I find his biography impressive.
Not necessarily all the educational stuff, or even the philanthropy, but spending 25 years on the floor of the CBOE trading options, in my mind at least, gives him a certain pragmatic credibility. The core 10K Strategyhowever, is more than just a simple calendar spread. The trick is perfecting the strike price selection and deciding upon an ideal ratio of how many near term options to write and at which strike prices you can actually get burned if you simply buy a lot of LEAPS and then sell a matching amount of next month options all at the same strike price.
The Paper includes several customized strategies, not just one generic "calendar spread. In addition to the customized strategies, the White Paper is also a good primer for those new to options trading. It's a solid reference document - whether you're setting up a specific strategy, or you're just trying to remember which option greek does what and forex factory vsa malcolm it's important.
In short, it's a pragmatic, no-nonsense education in options. Is that a typical result? The stock essentially 60 seconds binary options trading 2016 best 60 second strategy flat for a whole year while Terry and his subscribers extracted the full premium from it month after month after month. These days, as I understand it, he pretty much avoids individual stocks and focuses a lot on ETFs and indexes.
But the returns can still be fantastic. Noticing a theme here? I gather Terry Allen is more comfortable trading calendar spreads than in mastering internet marketing.
In a way, that lack of B. With a lot of services, the emphasis is the other way around thanks to visitors of this site asking my opinion, I get to see a lot of sales copy - and, of course, I've been scammed once or twice myself. Sure, stock options can seem intimidating and complicated if you're brand new to them, but honestly, we're not talking about higher mathematics here. You're not trying to land a rover on Mars or anything.
And yes, option trading can get a little confusing from time to time, but please - whether you ever use this service or any other - please, please, please, don't ever fall for that old trap of "I need to pay someone thousands of forex edge teaching me this dark, secret art.
Seriously, if you can prepare and file your own taxes and I said "prepare" not "enjoy"you can learn calendar spread trading. If you do pay these exorbitant how to trade stocks using cpf, you should be aware of what you're actually buying, and it's not information.
If you're dropping that terry allen options trading of money for a seminar, what you're really trade currency futures australia for is the hotel conference room and some well-dressed, charismatic stranger's expensive suit, first class air travel, and imaginary friendship.
Dr. Terry Allen
If it's for software or a "system," what you're really paying for is the illusion of privileged or "secret" information which, unfortunately, doesn't quite exist.
In the last couple of years, Terry Allen has added an intriguing new strategy to his aresenal which he calls, The Mighty Mesa it's what the monthly profit profile looks like when graphed. The Mighty Mesa is designed for a different kind of trader, a more risk-averse trader. But the more risk-averse trader now has an alternative - The Mighty Mesa.
The trade off is that there's a lot more added protection to the portfolio and some corresponding complexity.
The official description of the strategy is this: The asterisk qualifies the statement - it was back tested 10 years and never showed a loss during any consecutive 12 month period. You should always take back testing with a big grain of salt, of course, but I still admit to being a little impressed by this one.
Admittedly, The Mighty Mesa is somewhat more complex and involved compared to the original 10K Strategy. That's because, in addition to the calendar and diagonal calendar spread trades, he tacks on a customized butterly position. And there are also some additional rules for making some occassional mid-cycle adjustments when necessary.
It all depends on how comfortable you are with complexity and how uncomfortable you are with risk. If I had to trade I'm an investor, remember? I'd probably go for the simpler and more lucrative 10K strategy over The Mighty Mesa, but it's all about your own wiring. The service does include an auto-trading option for active members that he encourages you to sign up for, but my own bias is that you try to mirror the trades on your own.
If you're going to trade, I think you should take ownership of your trading, but that's just my opinion. If any of this sounds intriguing, you can check out Terry Allen for yourself. I do earn a commission if you purchase a White Paper through this site. I am, however, very selective in what services or products I feature.
Dr. Terry Allen's Articles | Seeking Alpha
My primary purpose with this site is to promote the idea that options can and should be used as a way to enhance conservative, long term portfolios, which I call Leveraged Investing. My secondary purpose is to highlight alternative choices that are both legitimate and viable for those who prefer straight trading.
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