The option trading alert service was created to help investors/traders take advantage of time. Like many decaying assets options lose value over time. With proper asset and strategy selection we will show you how to put time on your side. Not all option strategies are constructed or used the same way by each investor. We will employ a variety of strategies to collect “THETA” which is the daily decay of options that is derived from the extrinsic value of our options. We will be analyzing 10-15 trades per month.
Time Bandit will be launching soon. If you are interested in this service then please get on the waiting list. This will get you in to the beta launch and provide you a discount when it is launched.
What does Time Bandit include?
- 10-15 trade ideas per month
- Monthly and quarterly webinars
- Monthly describes positions for that month
- Quarterly offers education on premium collection theory
- Trade adjustments sent directly via email
Who is this service for?
There is a skill to premium collection. Premium collection is the technique used to make money in an individual stock, index, or ETF that is not moving.
Using options, an investor can actually make money off of the stock NOT performing. Stagnation is wanted in premium collection strategies. The reason premium collection strategies are tailor-made for individual investors is that these strategies do best when just simply left alone. When properly selected and executed, there are very few adjustments needed over the course of the month, an ideal position for people who have other jobs and responsibilities and can’t watch the market all day long.
By “letting the position do the work,” an active person with a life outside of Wall Street can still participate in the market in a big way. There is no need to become a professional trader or even to spend the time simply watching the market like a professional to get professional results. The secret is premium collection. But be aware, premium collection involves selling options and selling options can bring with it very big risk.
All Time Bandit strategies are always fully hedged positions. Remember, being fully hedged does not mean “without risk.” For the record, the term “fully hedged” does not mean “without potential loss.” Fully hedged means that the maximum potential loss is fixed and limited to a specific amount no matter what happens. You can lose only so much but you cannot lose any more than that…period! Being fully hedged is one of the bigger components of keeping you in the game.
There are several interesting advantages to premium collection strategies.
1) They take advantage of consolidation or stagnation.
This type of sideways movement wreaks havoc on Wall Street where the majority of traders trade direction and have proven time after time that they can’t make money when things go sideways. The reason is because the only way to make money in stagnant periods is premium collection and that can only be done with options. The vast majority of Wall Streeters have trouble spelling option let alone knowing how to use them.
2) They can be constructed to take advantage of a directional stock movement.
Expectations of the stock grinding up or grinding down can be incorporated into the overall premium collection scheme. Often, slow grinding movements bring about a decrease in volatility which also benefits the premium collector. Combine the passage of time with the potential decrease in volatility and then add some small gains that can be attained by selecting the correct direction, and all those ”little trades” can add up to something big in a hurry!
3) All of the strategies used by the Time Bandit are high probability trades.
This means that although you are not going to become rich in any one trade, the odds of you being profitable frequently are much higher and more likely. This will be done in several ways but mainly by using time to our advantage. We will always be in long theta positions…always seeking to capture time decay. With time on our side, our chances of success increases.
The nature of this type of strategy, premium collection, plays directly into the hands of most people who can be in front of the computer all day as work and responsibilities take up the bigger portion of most of our lives. Premium collection is normally a strategy that works better the longer you can stay in it. As you know, theta is not linear. The closer you get to expiration, the faster rate of decay. This means, the longer you can keep the position on, the more money you will make.
With position optimization achieved by leaving the position in tact to do the work, adjustments to the position are hopefully few and far between. Patience is the key to successful premium collection!
As you can see, the Time Bandit is geared to you busy investors who have more to do than just sitting in front of the computer all day trading. The service basically runs from expiration cycle to expiration cycle.