![]() ![]() But my losers have overwhelmed my winners because I can’t keep up with the adjustments. I am unable to keep up with every single trade, as option alpha recommends more trades than I have the bank roll/risk tolerance to take on. I can’t say definitively whether or not premium selling the Option Alpha way is profitable. It is very difficult to be around for all of the adjusting trades, especially when they happen at 2 o’clock on o Friday. It easy to put a GTC order to take profit when it occurs. My biggest problem came with adjustments. If a trade goes against you, there is a chance you will be able to roll the losing trade forward, take in some premium, or at least break even and keep the dream alive for another month and maybe take a profit, maybe take a loss. So you put up 400 bucks for the change at about 38-88 bucks after commissions. Your broker is gonna charge 6 bucks each way, so about 12 dollars in commission for a successful trade, not counting slippage. But you need to manage your winners at 25-50 percent, meaning you keep maybe 50-100 bucks at a time. The average trade with OA is an iron fly maybe 6 dollars wide and you take in 200 bucks or so in premium. This means that if you have a 10K account, your max loss should be about 500 bucks. Option alpha, as wells as tasty trade and numerous other brokers advocate trading small and often with position sizes limited to 1-5% of your total account size. You get notifications when to open, when to close, and when to adjust. The Bad So the premium selling strategy basically boils down to a lot of iron flies, which are just tighter versions of iron condors managed at 25% and some iron condors managed at 50%. The GOOD Option alpha delivers a lot of what is promised. Never was a promise made… though it was insinuated. So I paid about 2 Grand to option alpha after watching all of the free videos explaining various options strategies and talking about POTENTIAL income. 85 % of my investments are in index funds and this is just “Fun money.” I got bit by the Iron condor bug about 18 months ago and thought to myself, “How can this not lose money?”I read a few options book, included Options as a strategic investment, trading options greeks, options volatility and pricing, and a couple others.Īfter about 3 months of losing money, I decided I needed some tutelage. I have a long term retirement and have been investing about 5 years now. ![]() There are quite a few paid services out there, but this one seems to be pretty popular.Ībout me. I am writing this review option alpha, but I suspect that it could be pretty relevant to a lot of options training type services. ![]()
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