So, you're getting into stock options trading, and you want a good options newsletter subscription to help you learn the trade better, and to be there for you when you are facing difficult decisions. You want a quality options advisory right there with you at all times. Smart move.
But in options trading, you can find an options advisory service here, there, and everywhere. They're a dime a dozen--and that's because a majority of them are worthless. They'll cost you more than they get for you. Face it: ours is an age that endorses incompetency. But, there are still those who really do provide a high quality options advisory service, who send out a good options newsletter to their subscribers. How can you locate these? Well, the best way to start is by knowing what NOT to look for or subscribe to.
To begin, when seeking quality options advisory, the old adage of "if it seems too good to be true, it probably is" definitely applies. Everyone knows everything and no-one's ever wrong. Nobody in options trading is making unbelievably big gains without taking unbelievably big risks. There are actually options traders who use strategies designed to earn money strictly on premiums, and even on just option spread credits. If someone sounds like they are making unbelievably big gains all the time, check them out thoroughly. Very, very thoroughly.
Along those same lines, when it comes to finding stock options advisory, beware the secret formula. If someone has a secret options formula that is making them big, big bucks, while they have low, low risk, then why are they sharing it with the whole world--and asking to be paid for sharing it? Aren't they afraid that if everyone does it, that would throw off their entire strategy through market distortion? These false advisories almost always come packaged in the form of "only the pros know about this". That just doesn't hold up to the evidence. There are no secret strategies in options, frankly. There are known strategies that require intelligence, persistence, and discipline to apply to the right situations.
Don't fall for any options advisory strategies that insist you only have to work with calls. This is options--not individual stocks. Options contracts expire in a relatively short time. You can't be long all the time and make money in options. They are not about buy-and-hold. They are about watching and anticipating market movements. There are times to enter into call contracts, sure...just like there are times to sell them, and times to enter into puts. If there is no balance in the strategy, blow it off.
Also, don't fall for any advisory service that only markets its winners. These winners may all be real, but what about the losers? Everyone loses sometimes. A quality options advisor is up front about this and won't trick you into believing that if you only go with them "you can't lose". Do their staff members actually learn from their losses?
Finally, when looking into options advisory professionals, make sure they are transparent, and that they aren't into "get rich quick" schemes. Only invest in an options newsletter that is bolstered by common sense.
