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Stock Trading Sites Review
Options
Trading System
Options-Trading-System™ is an affiliate of
QQQ-Options-Service™, a service that delivers
trading
signals for QQQ options.
The QQQ, also known as the "Cubes" (or "Qubes"), track the
NASDAQ-100 Index, which consists of 100 of the biggest and most important stocks
of the NASDAQ Composite Index. Based on the NASDAQ-100 Index Tracking Stock, QQQ
options have become very popular in recent years. They are the most liquid
option currently traded on the market.
For beginners and advanced options traders alike, our QQQ
options signals are very easy to follow (click
here for an example). A signal can take one of two forms: "Buy Put" (to
purchase a put option or "put") or "Buy Call" (to buy a call option or "call").
Concurrent with the issue of a trading signal, the system
provides several options parameters that are necessary for making trading
decisions and placing actual trades:
- Option symbol;
- Name and symbol of the underlying security (i.e., "QQQ");
- Option strike price;
- Expiration date of the option;
- Suggested entry price;
- Suggested exit price;
At the time a signal is issued, the trading system also
provides a number of alternate (but closely related) option symbols, which may
be traded in accordance with the main signal. This feature allows you to tailor
your trading approach: you may choose to trade an option that is associated with
more risk than the main option, or vice versa - it all depends on your personal
preferences and risk tolerance.
If you have decided to follow a signal, our
"Suggested Entry Price" and
"Suggested Exit Price" become the most important parameters associated with
opening and closing a trade. For a particular put or call, our most general
trading recommendation can be summarized as follows:
- Buy puts / calls when those puts / calls trade at
or below the "Suggested Entry Price";
- Sell puts / calls when those puts / calls trade at
or above the "Suggested Exit Price".
The fact that a new options trading signal has been issued
does not necessarily imply that a trade will always take place. There are
situations where the market does not reach our "Suggested Entry Price". When
this happens, the
trading
signal will usually "expire" within a few trading days. For instance, assume
a new trading signal was issued (published) on a particular day. If, following
that date, no trade is initiated within three trading days, the signal will
expire and we will cancel it. The reason we at times cancel a signal is to
protect you against losses - options are decaying (wasting) assets and lose a
portion of their value each day.
Our options trading system is highly flexible. If a trade is
not initiated in accordance with a signal, the old signal can be cancelled and a
new signal issued at a later time. It is understood that stocks can be very
volatile and that market situations may change in an instant. What was the right
trade yesterday might be completely inappropriate today. We take this into
account in the following way: once an options trade has been initiated in
accordance with one of our signals, the only parameter we may change from that
point on is our "Suggested Exit Price". We may do this in order to (a) increase
profits or (b) reduce losses.
The following lists all the possible
options signal adjustments that can occur following a signal issue or a
trade initiation:
- A signal was issued, but no trade has yet been initiated:
- The signal may expire;
- We may cancel the old signal (the signal that was
just issued);
- We may issue a new signal;
- A trade may be initiated in accordance with our
"Suggested Entry Price".
- A trade was initiated in accordance with a previously
issued signal:
- We may adjust our "Suggested Exit Price";
- We may close the trade in accordance with our
"Suggested Exit Price".
Should any of the above changes apply to a recently issued
options signal, the modifications will be posted on our members’ home page the
same day the signal changes become effective. You will also receive a signals
email alert (assuming you signed up for this service – see below) that reflects
all the changes.
Our trading signals are updated daily by 8:30 pm EST. You can
access the most current signal for a particular options trade by checking our
members’ home page. In addition, we also notify our subscribers by email about
the current signals status, as well as about any other changes. In order to
receive trading signals by email alert, you need to register your email address
on the members’ home page. Prior to this, you must have opened an account for
our QQQ options trading service.
Email alerts are available: (1) in a standard format, and (2)
in a cell phone format, where we reduce the size of the message to a bare
minimum, in order to accommodate the text size limitations for cell phones.
Although we also incorporate other forms of market analysis
into our decision making process, the basic principle behind the generation of
our trading signals is a process called "volume technical analysis". To
better understand how signals are generated, we have illustrated all the trades
in our
trade history with charts. These indicate the exact points at which signals
were generated. The charts also reveal where trades were initiated and
terminated. All of our chart examples are supported by brief explanations that
show why a particular options signal was generated.
The best way to learn more about the QQQ options trading
system is to browse through our site - you will find further details about the
points we discussed above. We sincerely hope this information will help you move
forward in your options trading.
Below, we have listed a few useful links to resources we hope
will help you better understand the QQQ-Options-Trading™ product offering:
-
Trade History: A complete trade history of QQQ options trades based
on our trading signals;
-
Trade Examples: Examples of all QQQ options trades from our trade
history. The examples are based on NASDAQ-100 index charts. Each trade is
annotated with a brief explanation.
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