By: Steve Smith
My first trade, I lost a whopping $50,000. But, I learned a lesson that has saved me and my subscribers many times that amount.
In 1989, I was brand new on the CBOE and for the first time, I had an account in my own name. Before then, I was involved in trades for my father’s firm and his clients on the AMEX exchange.
I spent my first few weeks lurking around “the pits” before I found my first trade.
United Airlines (UAL) was set to merge with Northwestern for around $200 a share.
UAL stock had been trading around $190 for over a month. The 150 put, which expired the next day, was trading $1 or $100 per contract.
I sold 10 contracts thinking, “I can’t believe how easy this is, I’m gonna collect $1,000 for doing nothing when these expire worthless tomorrow.”
The next day, the merger was called off and the stock dropped to $100 a share…
That was October 13th, 1989. It is known as the Friday the 13th mini-crash…
I remember it as the day I lost $50,000 but learned a much more valuable lesson.
And in the long run, it has proven to save me and my subscribers FAR more than I lost – because I learned to NEVER sell a naked position.
You always want to have a well defined and limited downside when you go into a trade.
Having a well defined and limited downside is one of the core tenants in my Options 360 service.
Combine that with my 3 P’s and we have a service that has killed the S&P for 5 years in a row!
2015: up 125% (S&P was down .73%)
2016: up 32% (S&P was up just 9.54%)
2017: up 48% (S&P was up just 19.42%)
2018 up 67% (S&P lost a whopping 6.24%)
2019: up 77%% (S&P up just 28.9%)
And this year we are doing it again. YTD we are up 27% while the S&P is down a point.
The 3P’s are the secret to success of Options 360. They are:
1)Price — the chart/technical analysis is the starting point for identifying good setups
2) Probability- applying the right options strategy that aligns with my expectations and offers the best probability of making the trade…
3) Profitable- I look for trades that have a 60%-80% return, and I limit losses to 30%-50%. I focus on a win rate of 60%. The result is a 30%-50% annual return.
It’s important to follow the 3P’s because they consistently keep us on target, which is critical in a market as volatile as this market.
The good news is that this volatility gives more opportunities for profits, and this volatility is likely to continue for the rest of the year, and maybe longer.
That’s why I want to give you a chance to test drive Options 360 for just $19…
My proprietary 3P Method makes money when the market is going up, and does even better when the market is going down.
Because of the 3P Method, my subscribers have had the chance to recently grab winning trades like:
- 66% on PANW in just 2 days, and
- 44% on XBI in just 5 days,
And Year to date, we are up a whopping 27% overall, winners and losers.
Now, I want to share the 3P Method with you.
At $19, anyone has the chance to test drive Options 360.
And there’s a good chance that if you actually put on the trades, you’ll make enough in the first 30 days to pay for an entire year subscription.
Of course, I can’t promise that you will make any money. But, if history is any indicator…
Most of the trades I highlight in Options 360 require just a few hundred dollars to get into, although you can invest as much money as you want into any of the trades.
You can start small, or you can go big… it’s up to you.
If you want to start making money systematically in any market, it is critical that you click here and grab your trial membership right now, while it’s still available.
I look forward to a long and prosperous relationship with you.
To Your Profits,
Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.
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