Trading Rules and Strategies

1) We generally don’t pay more than .50 for an out of the money call or put option. As a result, our focus is on small to mid-cap stocks. ( Out of the money stock options on large cap stocks that are close to the strike price, are usually priced more than our .50 limit, and also don’t have the percentage gains that we look for) In terms of Risk management we tend to limit each play to under $2000

Please Note: The .50 risk threshold  exists when we play one side, either a call or a put..The price goes up when we utilize a Straddle/Strangle strategy, where the risk is mitigated because we are taking both sides of the trade and expect volatility.

 

2 ) Oftentimes the best fills on an underlying stock after earnings, is in the After Hours Markets, which we at times utilize to lock in profits against our options. We can’t take responsibility if you don’t have access or trading abilities in those markets. We would be happy to recommend which trading platforms we find best suited  for Pre/Post Market trading

3) We obviously  don’t expect to be right on every trade; but we know when to cut our losses and salvage whats able to be saved. However, our studies have shown, that if we limit the losses to the max .50 we pay for an option, it is more than offset with our  winners, many of which have risen in excess of 500%

4) Since a majority of our plays are earnings driven, we tend to be more active during earnings season. We will also be sending out Tweets on low float stocks as long as they are news or theme driven. Please note , that Low Float stocks are extremely volatile  and risky.

5) Since info is disseminated via a private twitter feed, we highly recommend  that you download  Tweetdeck, Janetter or similar apps  in order to have the tweets brought to your attention as quickly as possible.The above mentioned apps update  tweets automatically.