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Options Trading Advisory Services

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Looking for an options trading advisory service that provides consistently profitable option trades?  Schaeffer’s Investment Research is a very educational advisory service that also offers a gamut of different subscription services designed to enable the subscriber to mix and match different options trading styles.  I am currently a subscriber to Schaeffer’s “Super Trader” aggressive alert services package and its more moderate “Weekend Trader” bulletin service. Another good option advisory service to consider here is Option Monster, which also offers several subscription services tailored for one’s particular level of trading experience and desired level of risk.  Option Monster also has a very good education section within its website as well.  I am currently a subscriber to Option Monster’s aggressive “InsideOptions” alert service, which provides up to five Options trade ideas each week.  Schaeffer’s and Option Monster are two of the more popular options advisory subscription services out there, and they have both recommended some real winners for me in the past.  But my overall returns from both of these services have been tempered by the issuance of many additional recommendations that didn’t pan out too well (i.e., especially Schaeffer’s in the past); as a result, one needs to be aware of the overall picture here when striving to achieve a model of consistent profitability with these services.  In other words, additional technical analysis and fundamentals based research on the subscriber’s part is usually required in order to proactively eliminate most of the the additional recommendations that will not work out in order to increase one’s overall level of profitability.

In terms of specific options recommendation services that identify short-term opportunities that are about to “pop”, several alert services offered by Schaeffer’s and Option Monster immediately come to mind.  For instance, Schaeffer’s “Expiration Week Countdown”, “Overnight Trader”, and “Weekly Options Trader” alert services offer these aggressive short-term “pop” types of opportunities, as do Schaeffer’s “Event” and “Players” series.  Option Monster’s “InsideOptions” service also offers similar trade recommendations as those offered by Schaeffer’s, although Option Monster tends to curb the urge to flood the subscriber with recommendations that have not have been fully researched or scrutinized by its senior options analysts.  Furthermore, Option Monster recommendations issued by co-founder and “InsideOptions” lead analyst Pete Najarian have had the highest winning percentage (for me) of all of the advisory services mentioned here.  Pete Najarian does not issue direct recommendations too often for the “InsideOptions” service, but when he does they usually work out very well; as a result, I rate Pete Najarian as being the best of the options advisory analysts that I have been following for the past several years.  One additional options subscription service that one should consider here is the one being offered by TheStreet.com, with which the folks over at Options Monster share a common history with.  In thinking in terms of comparing these different types of option recommendation services, I actually believe that quite a few of these advisory services “borrow” from each other to a certain degree and then repackage the information gleaned for their particular ongoing marketing models.  For example, Schaeffer’s and Zack’s seem to partner-up on some of the service recommendations offered by Schaeffer’s, as do Schaeffer’s and options research group What’sTrading.  In addition, Option Monster and TheStreet.com seem to partner-up on some of their recommendations as well, which makes sense based on the above mentioned common history that they share.

In conclusion, I should reiterate that most of the popular options advisory services out there will recommend some big winners to you as a subscriber, but you’ll need to do some additional “homework” to weed out the non-winning ideas in order to make the service profitable on a consistent basis.  Again, my overall returns from the above mentioned subscription services are usually tempered with many additional ideas that do not work out, so I try to stay aware of the overall picture here in order to achieve a model of consistent profitability.  Additional technical analysis and fundamental based research on the subscriber’s part is necessary in order to proactively eliminate the additional ideas that won’t work out in order to increase one’s level of profitability.  Granted, these services will recommend a few nice winners for you per their advertisements, but you’ll definitely need to scrutinize their all of their recommendations with your own research (and closely monitor them) in order to make subscribing to the service worthwhile.  As an example of this, I have now gotten to the point with Schaeffer’s “Expiration Week Countdown” service recommendations where I weed out all but one or two of the ideas issued during options expiration week of each month.  For example, during options expiration week in August, 2010 I eliminated from consideration all of the recommendations made but one, which was one of the Netflix (NFLX) call options that was set to expire at the end of that week (Call -> NFLX -> AUG 21, 2010 -> Strike Price $110).  I selected this particular idea out of the overall group that Schaeffer’s recommended due to the recent high levels of volatility associated with NFLX’s stock price and volume at the time.  And this particular option call did very well for me that week (i.e., more than enough to cover the cost of my annual subscription).  So I have found that I am able to select one or two real winners to play with from the list of recommendations made by this particular service during options expiration week each month, and my experience has shown that the rest of the ideas are usually worth ignoring after doing the requisite research. Hope this all helps!

http://www.schaeffersresearch.com/cart/ViewAllProducts.aspx#aggressive
http://www.optionmonster.com/about/products.jsp

See link below for an enhancement of finance professor Peter Carr’s instructive paper on the implementation of the Black-Scholes call/put options pricing model on the HP-12C programmable finance calculator by Tony Hutchins. http://www.hpcc.org/datafile/V23N3/V23N3P25.pdf

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4 Responses

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  1. I was just wondering what you thought of the Schaeffer’s Expiration Week Countdown subscription. From some other reviews (http://www.stockgumshoe.com/reviews/expiration-week-countdown/), they have not been able to pick winners.

    Kelly

    September 10, 2010 at 12:59 pm

    • Kelly, I appreciate your comment and the link to additional reviews of Schaeffer’s Expiration Week Countdown! As I alluded to in the posting, my overall returns from the above mentioned subscription services in the past have usually been tempered with the many additional recommendations/ideas that do not work out so well, so one needs to be aware of the overall picture here in terms of trying to achieve any semblance of consistent profitability. Having said that, some additional technical/fundamental analysis and/or research on one’s part is always required in order to proactively eliminate the additional recommendations/ideas that won’t work out in order to increase one’s level of profitability. I find that these services will recommend a few nice winners for you, but you’ll definitely have to be able to weed out the non-winners (or losers) that also get recommended in order to make the service a profitable venture on a consistent basis. In fact, I’ve gotten to the point with the Schaeffer’s Expiration Week Countdown service where I will weed out all but one or two of the recommendations during each expiration week of each month. For example, last month (August, 2010) I eliminated from consideration all of the recommendations offered but one, which was one of the Netflix (NFLX) call options that was set to expire at the end of that week (Call -> NFLX -> AUG 21, 2010 -> Strike Price $110). I selected this particuar one out of the bunch they recommended due to the recent high levels of volatility associated with NFLX’s stock price and volume at the times. And this particular option call did quite well that week (i.e., more than enough to cover the cost of my annual subscription). In a nutshell one is usually able to select one or two winners to play with from the list of recommendations made each expiration month; but my experience has been that most of them are usually worth ignoring after doing a little bit of research on them.

      Larry Fry

      September 11, 2010 at 5:43 pm

  2. Hey, very interesting articcle thinking my self getting into this program.
    BTW thought you might be interested, I just had an good experience, simulating in real time and historical on this option software, and it gave me much more confidence trading options.
    option software
    It’s free (can’t believe it, but its true).
    George

    George

    September 12, 2010 at 2:51 am

    • Thanks George! I will definitely checj it out.

      Larry Fry

      September 12, 2010 at 11:35 am


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