How does OptionAlarm work? What can I expect if I join?
You will receive our morning pre-market commentary approximately 45-60 minutes prior to the market open and it will review our open positions and give a general overview of the day ahead. All new trade signals or closing positions will be communicated via e-mail/phone text during market hours only. Approximately 45-60 minutes after the market closes we release a market wrap-up which includes a review of our positions.
Do I have to log into the site several times a day for updates?
No, the great majority of our members never even visit the site but prefer to wait for our e-mail communications. The service was totally designed with professional business people and busy people in general. All open positions are reviewed in the pre-market commentary and any trades and updates are sent via e-mail or phone text during trading hours. Many of our members auto-trade the service. There is no need to log into the site.
Do you trade any advanced strategies that may require higher option approval or more trading capital?
No, we only buy calls or puts. This is simple Level 2 approval from your broker.
Do you day-trade? Do I need to have a $25k account to trade your service?
No, we are not pattern day-traders and because of that you do not need to maintain a $25k account balance.
What type of options do you buy?
We typically target active calls/puts that trade in the $1-$8 range and our average hold time is 4-12 trading sessions. We typically hold 2-6 positions at any given time.
Can I tailor your alerts to suit my own style?
Absolutely. Depending on their own risk-tolerance and profit objectives, members often use the system in their own style, essentially using our alerts for a flow of trading ideas. Some hold longer than we do, some take a quick 25-30% profit and exit before we do while others use TD Ameritrade or other brokers that auto-trade our alerts for them to our exact parameters.
Do you use stop-losses or adjust the trades?
Depending on market conditions and volatility, trade alerts come with stop-losses which are often adjusted as the market dictates. Same goes for the price targets. If gains are eroding the traders will issue an alert to take profits sooner or if a stock is up big in the pre-market they will issue an alert to raise the target price to maximize profits.
Do you trade weekly expiration options?
For now we only trade the monthly expirations which expire after the 3rd Friday of each month. This may change if market conditions dictate it.
If your question was not answered here, please feel free to contact our support team for a quick and detailed response to your question.