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Frequently Asked Questions

Are your stock option trading results real?

One of the first questions we are always asked is:  Are the stock option trading results real?  We want to be the first to say that there aren’t many stock option pick websites that will actually show their track record for their trades.  Now, we won’t say we are the only one, because we are sure there are a few others. However, our belief is that you keep subscribers based on results and accountability. Yes, our stock option trading results are real.faq

Of course, not every trade will be a winner as you will see but we have a solid 5-year Track Record for all of our trades - a 73% success rate.  You can locate each post by using the search box on our home page.  These are good learning examples, and they are also time-stamped to show our integrity.   We also have auto-trading partners who VERIFY our results.

There are many stock option picks sites that give you a “Closing Price” from the night before and say that is when you “could” have gotten in.  Then the next day when you try to enter the trade, you find that the spread or entry price is totally different because of a large move.  All the stocks and options we profile have the current market quote as we write the newsletter in real-time and do trade updates at least DAILY, for our members.  We also send out new Trade Alerts or profit Alerts, if needed during market hours.  There are no smoke and mirrors.  If we are wrong on a trade, we will say we blew it.  It’s that simple and the results are recorded.

When do you take profits?

We target profits at 100%, and raise our stops along the way. Occasionally, we have profiled stock option trades which have returned upwards of 2,500%. That is not a typo! However, for the most part our goal is to double our money on each trade. We usually take profits at 100%, and close at least half our position to protect our profits when we hit a triple-digit return.

What is your stop loss for each stock option trade?

We normally limit our losses to 50%. We use Stop Targets and Hard Stops depending on the specific trade. Once a trade hits our stop loss or is near our stop loss we usually move on. However, there are times where we may leave a trade open if we still believe it can turn around. We may occasionally adjust a stop 10 or 20 cents below 50%, but we’ll explain why on that particular trade. We have seen stock options lose 75% of their value only to soar by 500% the next day.  It is also important to note  we do not carry stops on options under $1.

Why do some option trades on your track record show losses greater than 50%?

We do not typically place hard stops on stock options whose premiums are less than one dollar ($1). The reason for this is due to volatility. If we did place a hard stop, we would routinely be stopped out and not give the trade enough room to work in our favor.

Do I have to watch the stock market all day?

No, absolutely not. All stock option recommendations come with clear stop targets and profit taking targets. You simply read the Trade Updates at 9 am each morning and in the afternoon.  If there is action to take outside of our regularly scheduled updates, we will send out a Trade Alert or Profit Alert.

How often do you post to your newsletter and updates?

We do daily market updates at 9 am and 1 pm EST. Occasionally, we’ll do a mid-morning or late night post if there is news or if we have any option trades that need to be updated.  Ongoing stock option trades are discussed in the Members area.

Do you offer e-mail for your stock options alerts?

Yes, all Daily posts and New Trades/ Profit Alerts are also sent to you via e-mail in real time – typically between 9am and 1pm EST.

Do you offer cell phone alerts?

Yes, when a new post or member update is made, you have the option to be notified via cell phone at no extra charge.

Do you offer auto-trading?

Yes, we do. Click here for more details.

How many stock option trades do you make on average each month?

We average anywhere from 1-3 option trades per week – sometimes more or less depending on market conditions. What we won’t do is make a trade simply for the sake of trading. We look for the BEST trades and the BEST conditions to make you money.

What do your stock option trade updates look like inside the Members Area?

Akamai Technologies (AKAM, $32.60, up $0.16)

February 36 calls (AKAM120218C00036000, $1.10, up $0.05)

Entry Price:  $0.95 (1/6/12)
Exit Target: $1.90
Return:  16%
Stop Target:  None 

Action:  We are looking for a run past $35.

 

MGM Resorts (MGM, $11.12, down $0.01)

February 11 calls (MGM120218C00011000, $0.83, down $0.02)

Entry Price:  $0.78 (1/6/12)
Exit Target: $1.60

Return:  0%
Stop Target:  None 

 June 14 calls (MGM120616C00014000, $0.52, flat)

Entry Price:  $0.48 (1/6/12)
Exit Target: $1.00
Return:  8%
Stop Target:  None 

Action:  We have a $17 price target for MGM in 2012.  We think shares can reach $13 by February.

 

What type of option trades or strategies do you make?

We primarily buy call and put options, but occasionally we will do straddles and strangles option trades. If you are new to the world of stock options, they can be very complex. Once you learn how basic call and put options work, you can use them for more advanced trades like credit spreads, iron condors, and calendar spreads. All of these “advanced trading strategies” can be used with both call and put options, but they do not provide the same returns as directional, momentum stock trading does. It’s possible for a call or put option to gain 200%, 500% and even 3,000%, but advanced stock option strategies limit your income potential.
How do you decide which stock options to trade?

There are many variables that go into selecting a stock option trade. We discuss this in more detail in our stock options trading course. We can’t give away all of our secrets, but the bottom line is that you have to be able to identify which stocks are moving or which ones are ABOUT to move. Then we do our homework to define our profit (and loss) zones and decide if the trade is worth taking. For each option trade we recommend, we offer a detailed explanation as to why we feel a stock is ready to “pop” or “drop.”

Do you buy out-of-the-money stock options?

Yes. Most of our options trades are at-the-money or slightly out-of-the-money with an average price of $1.00 -$2.00 ($100 to $200 per option contract). There are times where we find cheaper stock options that only cost 50 cents ($50) for one contract. Occasionally, we may profile an option trade with a price tag of $3 or more. These trades are rare, and most of the time they involve stocks which are trading over $100 – $200 or more per share.

How much on average does each stock option cost?

Most of our individual stock option trades have an average price of average price of $1.00 -$2.00 ($100 to $200 per option contract) with an occasional option trade with costs $3 or more.  A 10 contract trade on an option priced at $1 would be $1,000.

How much does each stock option trade normally cost?

We like to purchase 10-20 contracts for each stock option we recommend for a total cost between $1,000 – $2,000. However, as with all trading, carefully evaluate your risk tolerance level and how much you are willing to lose. Never risk all of your capital on a single trade! Only risk a small percentage of your trading account on any one trade – perhaps in the 2 – 5% range.  If you buy 5 contracts, then your average cost per trade is $300 – $500. If you are just starting out, consider buying just 1 or 2 option contracts or even paper trading until you get use to our style and how options work.

How much money do I need to get started trading stock options? What % of your trading account is exposed to risk at any given time?

Never trade with money you can’t afford to lose.  This is the first ruke of option trading.  We recommend every portfolio should have a portion specifically for trading stock options but how much depends on you and your risk tolerance level. For our specific momentum stock options trading style, the absolute minimum account size we suggest is at least $2,000. However, with an account this small, a single 5-contract trade with a $1 option would cost you $500. That’s 25% of your entire account. With an account this size, you might consider buying only 1 or 2 contracts per recommendation. Ideally, an account size of $5,000 – $10,000 will give you more flexibility as to how many option contracts you can trade. With a $10,000 account you would only be risking 5% of your entire account with a $500 option trade.

Do you provide ongoing support?

Yes, our staff normally responds to all emails within 24 hours or less. Our stock options trading course manual is an “easy read,” and is written in a way to help you easily understand how call and put options work. We teach you step-by-step everything you need to know about how to spot a high probability option trade and define your profit and loss targets.  The course only includes monthly/ bi-monthly videos which are included.

What exactly will I find in your Members Area?

As a subscriber to our stock option pick service, you simply login and read the daily market updates at 9 am and 1 pm Eastern Standard Time (EST).  We give clear entry and exit points on what to look for as far as the option trade goes.  Sometimes we will say this is a quick or day trade only.  Other times we will go further out on the option trade to let a trade take shape.

The members area also includes a 30-page Welcome Guide that explains our approach in more detail, all of our track records (2008-2012), and other juicy nuggets of information.

Do you offer a guarantee or refunds?

No, we do not offer a guarantee or refunds as there are too many market factors beyond our control.

Cancellation Policy

In regards to our cancellation policy, due to the nature and scope of our service, we do not give refunds for partially used subscriptions. Recurring subscriptions can be cancelled at any time during the subscription period although a subscription cancelled during the subscription period will not be reimbursed, it will simply expire at the end of the subscription period. We offer a variety of subscription options with different time commitments to accommodate traders.

I have more questions. What is the best way to reach you?

Don’t hesitate to send us an email at support@momentumoptionstrading.com, or call tech support at (888) 898-0837 .

 

 

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Biggest Winners












    The portfolios can be found in the Members Area as well as past portfolios from 2008-2011. Overall, we are 621-273 on nearly 900 real-time recommendations that equals a success rate of 70%. This means, on average, 7-out-of-10 of our option trade recommendations make you money and we hope to have an even better success rate for 2013.

    If you are missing these juicy profits, come give us a try. Get your password to our Members Area instantly when you sign up TODAY! One profitable trade will easily pay for your membership. You can request our 2008-2012 Track Records by sending us an email or filling out the box below.

Trader Comments:
    I just want you to know that I love the way you write and explain everything. I am new to this, and have lost 50% of my account until I met you guys. Iit is slowly coming back. I will be calling to set up a year of membership rather than the one quarter. Thanks again, and LOVE YOU ALL. REGINA L.

    Rick, I appreciate the advice. I think I will just sit back and utilize your selections only for awhile. This will obviously save me a great deal of money in commissions. I have gone thru your entire site including the video on money management. This has brought me to the stark realization that I have been trading too much for too little. I definitely have not been "swinging for the fences", but I also think I have been getting impatient with trades and getting out too fast. This has no doubt caused me too trade too much. I like, and definitely agree on, the advice on money management. Thanks for the help. STEVE T.

    Thank you!!! I held on to the NFLX position since Nov. 13 at a cost of $1.89. Sold ½ on April 14th for a 540% return and the other ½ upon earnings for 702% return. Total profit of $11,615 a 621% return. Keep the recommendations coming and thanks to you and your team for the service you provide. SCOTT H.

    Rick & Team, GREAT Call on NKE for my two trading accounts:
    1) Entry at .65, out at 1.45, 1.55 Profit = $415
    2) Entry at .60, out at 1.75, 1.50 Profit = $485 PETER G.

    Hey Rick! Here is an update on what your picks have done in my accounts.

    1) Great call on the JoyG March 55. I bought when you said, then bought again on one of the dips. Booked 80+% profit. Made enough to pay for your service for years to come.

    2) Also booked profits on your Berk Feb 74 (80%) and threw a major chunk of change at the March 75’s (190+%). I would have never known that Buffet's stock had split if it weren’t for your service. Bought the shares also for the long haul. Won’t look at them for another 20 years. Great job on getting us in before the indexes did.

    3) Took profit on your Imax March 12.5. 20 cent trailing stop at 1.90 yesterday. Not sure what the profit on that was, but profit is profit.

    I see that you took a loss on some of these. It’s all good. I look to trade your “ideas” not your exact calls. I THANK YOU! For your ideas and commentary. Keep up the good work. And keep those ideas coming. LAWRENCE O.

    Loving this subscription so far! I got into the BRK feb 76 calls the day you talked about right before the split...now up over 300% (0.70 to 2.475)! Keep the good picks coming and let's see some OSIS and EMC upside soon! Just wanted to share my positive enthusiasm on your newsletter...it gives us individual investors great ideas on not only the options market, but also the broader equity market! Case in point is BRK...I can't always read the breaking business news but its easy to read your twice daily updates on my smartphone...helped me get some BRK shares immediately after the split which I will hold for the long haul! Thanks again! C.J.

    Aloha Rick - Thank you so much for the great CL pick. I am not sure if there was buy-out/merger news or what but at 3PM today Colgate-Palmolive absolutely EXPLODED to the upside, and my calls turned into green candy when they went from 1.40 to 3.8 in a matter of seconds! I even sold a few for over 4.0! Much thanks and keep the solid picks up my friend, honestly. Only a fool would scoff at 267% gains... Peace! SHAUN

    I like the fact that you ask for comments from subscribers. Good customer service. By the way, am enjoying the service so far. Some good profitable calls. Keep up the good work. MICHAEL K.

    Woo hoo! Out for 50% on WMT this am. Making up for my depression for getting out of pcln for a 30% gain monday :( you the man! any word on the manual? My friend Mike ( who I sent to your service) told me he emailed you about your integrity in reporting fills. I echo that sentiment big time.. keep it up! Cheers!
    PARAG P.

    Hi Rick, as a new member all I can say is, 'show off' LOL, with PCLN. JAY P.

    Rick, I am a new subscriber to your service, and I want to say I am impressed. I am impressed by your results, but more than that I am impressed by your reporting of your fills. You could have easily said you got that Wal-Mart call today for 80 cents, instead you reported 98 cents! Good job and keep it up, I watched the reporting of the fills first, and then I subscribed. Thank You. MIKE

    Hi, good morning. I jumped the gun a little on this one (PCLN). But still made $1,675.00 profit!! Very happy!! Keep up the good work!! Thanks. TRISH D.

    Hi there, I have joined recently, and I am very happy to tell you that I am up over $10,000 on your picks in a month. I started on 10/7 with the Intel pick. I'll be your member for life. Please don't quit on us. Also, I am learning a lot about options. I didn’t get in your recent APOL and that gold trade and only had one loss on CHK. I appreciate all the DD you do. I enjoy your market commentaries. Best advice site period, and I have tried a few here and there. Again, you guys rock! MIN L.

    Thanks be to Momentum Options Trading for providing me with some fantastic wins. I just started with this service and am up nearly 50% in less than a month. There have been losses, but if I manage them properly, I will continue the best efforts given on the blog (in which there are no complaints). What a great cause for humanity. I feel more confident about my trades and continue to play the wins. Best of all, I am now keeping my regular paychecks in the bank! Thank you! JOE G.

    Rick - I wanted to say thanks for getting me started on the right foot with your service. I have made six trades since starting on October 22, 2009. Five are winners and One loser netting me $6,245. Thanks again and keep the trade recommendations coming. GREG F.

    I got into the Nike 60 Call at 1.85, sold at 5.00, also bought a 55 put at 1.05, but got stopped out at .35. What a ride! $2830.00 in the black even with the put. It's right at 100% return. I hope earnings season coming up is going to look like this trade. NOEL

    Nice call on Nike. I think I'll go buy a pair with my profits! : ) I did the straddle for safety but still made 62% on the trade. Not bad for less than 24 hours. If Goldman is right, then the Nov 70s or 75's could be a steal today. TODD F.

    What a sweet way to get introduced to Momentum. My first trade based on your picks and it a 2X. Thank you! PAUL H.

    “Limit order was set at 1.60 on RIMM so it sold. I may have left some money on the table but you can't go broke making a profit. That was a fun trade. Thank you. Good call. I’ve been watching and trading Rick's advice since March. It’s usually a fun ride, but I give him heck when it's wrong to. :) ” NOEL

    “Your service rocks! I made bank on Dendreon last week! The other thing I have to say is that it took me quite a while to find a REAL options trading service like yours. Most of what’s out there is 99% scam and very sketchy. Momentum Options Trading is the first service I found that I can trust and seriously make money with.” CHRISTIAN

    “I made $420.00 on ANF in 2 days. Thanks for the trade and updates on getting out of the trade.” JOHN

    “I did follow a lot of your trades with 1-2 contracts per trade and YTD I’m up 108%. I try not to follow blindly by not entering all of your trades and sometimes entering the ones you don’t. I entered AIG a few weeks ago against recommendation – that one hurt.” CHARLES M.

    “I have been following you for several months and am interested in the new service. I hate to see the free service go away but as they say, “all good things must come to an end”. My ability to join will be greatly influenced by the monthly fee so I’m very curious to see the new prices. Thanks for making April a great month for me and my family.” BRYAN C.

    “I have really enjoyed the past month since finding your blog. You have made some great calls. I would appreciate info. on the new options mentoring program. Thanks.” JOHN H.

    “Hi Rick, I have been following your blog for several months now and I would like to be including on the list for your new service and to receive more information about it. And yes I was a Dendreon winner with your tips. Turned $280 into $7700, and literally saved my butt.” JEFFREY

    “I made over 6k on your Dendreon trade, and I’m very interested in learning how you pick and trade options. Sign me up.” ED

    “Rick – Wow what a day! I got in at the Dendreon calls at $2.25. Thanks to for your advice. I appreciate that. This company has a lock on this type of therapy and no one else in the world is close. Kind of reminds me of the type of companies that Peter Lynch and Warren Buffet suggest that investments be made in. Companies that can build a moat around their business model, that allows them to charge a premium for their product or service. In other words - a monopoly.” GREG

    “Hi Rick, Thank you so much for the Dendreon trade, I made almost $10,000 with that trade with a little over $2,000 investment. You have shown me the power of options trading. Again, thank you so much for all your inputs.” KEN

    “Hi Rick, thanks for the encouragement to play the dendreon calls! did freaking great! Got in the first lot at $1.44 on 3-24-09, sold at $2.45, 70% not bad. Bought it back at $2.30 on 4-7-09 closed out on 4-14-09 for 454% gain! Wow! I love it when that happens. So, thanks the encouragement to get back in when others were saying sell, sell, sell. Keep up the good work.” GARETT

    “Rick – Thanks for Dendreon – it has made all the headlines today! I missed on RIMM earlier, but I’ve been holding onto DNDN calls since 3rd week March. Of course today it all paid off today, as DNDN rocketed up.” TERENCE

    Jan. 31 2012
    Rick, new member...Studied all current trades, did some chart work,picked ZNGA, PEP, MGM...Sold on Feb. 2 for $3600.00 profit...Cost for 1-year membership to your newsletter was less than $1000.00..All I have to say..Thank you. John H –

    3/18/11
    Rick, I purchased 10 contracts of the Nike March 85 puts Thursday afternoon for $2.00. Thing is, I was upset because the puts went down to $1.60 or so before the market closed. Well, needless to say Nike didn’t impress Wall Street and when I turned on the computer this morning the puts were worth $7.10! Sold them for a $5,100 profit!. Thanks again, you are the MAN. Chuck J-

    2/3/12
    Hi Rick,

    I will start off with a thank you for your time and dedication to all
    the research you and your team commit yourself to. This is not me just being excited about the profits I have accumulated aka (bank) ! You have helped me get back to the passion I had of researching stocks/options. Keith N-

    Hi Rick,

    I want to share my great results on GMCR. Based on your comments on February 15th, I bought 20 options at $0.28. They closed today at $7.00, which is a 2,300% gain. My $560 dollars turned into $14,000 in less than a month. In decades of trading, this is my single best trade ever. Thank you! By the way, the Dow was down 228 points today and I could care less. What a great trade. It proves the amazing power of options. I am so grateful for your service, which calls it straight all the time, your options trading manual, and most of all, your amazing skill
    at finding winning trades. I have attached a copy of the trade from
    my brokerage screen.

    Hi Rick,

    Wow!! my account it up 70% since i joined last month and market is going the opposite direction. Really appreciate your service. I just wanted to drop a note to say THANK YOU. Hope to be with you guys for a very long time. Mel

    Rick,

    Great call on Fosl I bought the may 120 puts for 3.70 yesterday morning just sold for $32.00 today
    Keep up the great work
    Thank you, Henri

    Rick –

    I bought 10 Deckers Outdoor (DECK) May 55 puts at $0.50 on 4/26/12 and sold them on 4/27/12 for $1.65. I made $1150 in one day. Thanks. I knew something good would happen sooner or later.
    HOW THE HECK did you know Green Mountain Coffee (GMCR) was going to go down 20 points???!!!! I bought 10 of the May 35 puts at $0.49 and then 5 more at .30. I sold them at 5.80. Thank you again.
    You have made a believer out of me. Alan

    Rick –
    I have only been a member for about 6 weeks but I have done well on most of the trades. My first two were QQQ and SPY a month ago and since then I've gotten into the groove and been doing well.
    I try to execute the trades that you recommend as soon as you send them out, sometimes I can't and I miss the Entry price. However, sometimes when I miss the Entry, the price goes down and I get a better price.
    That's exactly what happened with GMCR.
    You recommended it at around $.81 I think, but by the time I got to it, the price was $.27. I bought 100 Puts on Wednesday May 2, 2012 and sold half of them 24 hours later at $5.95 for a nice 2,203% gain. As per your recommendation, as GMCR went above $30 I sold the remaining 50 Puts at $5.50 for a slightly less 2,037% gain.
    On average that one trade netted me a 2,120% gain, entirely based on YOUR recommendation (and a little bit of luck). To put this in real terms, I risked $2,700 on Wednesday and pocketed $54,550 just 24 hours later.
    So uhh, let's do that again real soon!!
    Feel free to use my name. The tax guys have me on speed-dial already anyway. Dennis

    Rick:
    That was awesome on your GMCR pick, I know how risky it can been holding into earnings but you pulled it off. 
    I just started my autotrading with you today and am in on your QQQ play. I look forward this service. 
    I have a busy career and I have tried to follow and trade throughout the day and found it too hard. I hope you continue to have a great year, I plan to go along for the ride. I am starting slow but will pile more in once I have secured some profits. 
    Keep up the good work your trading has been spot on. I am sure you paid your dues to get this point in your career. Anthony

    Rick:

    Great call on GMCR!  I have been trading for about 15 years actively.  This may be the best trade I ever made.  Got in on Monday, April 30 and the stock was up from when you recommended it.  It went up further after I got in.  Here are the facts:
    Monday, April 30th: Bought 15 June 37's at $1.25= $1900 approx
    Thursday, May 3rd: Sold 15 June 37's at $9.30=$13,950
    Gain for the week: $12,050.
    I understand you will not get them all right.  It’s important to ride those winners and as you could tell from my selling price, I sold when the stock went to $28.10, so left a little on the table.  Who can complain.
    Keep the suggestions coming, looking for another jump on your FSLR, one that I have been riding very hard.
    Best regards, Bob
      

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