By: Steve Smith
Yesterday, I hosted a webinar that took a deep dive into the philosophy and strategies used for every trade made by Options360, which have generated an average return of 56% annually, over the past 8 years.
While the bulk of the session was spent showing how Options360 consistently produces double digit returns and outperforms the S&P 500 Index, I also responded to attendees’ questions, as I often do throughout your membership with the service.
To watch the replay of the webinar, simply follow this link!
One of the most frequently asked questions is, “how much money is needed to follow all the trade recommendations?”
The quick answer is “not much.”
The formal answer is, we recommend about $10,000, but you can participate for as much, or as little, as you want.
One of the reasons for doing this is to allow everyone, especially new members, to start each year on the same page. It also provides a simple, transparent, and appropriate way to track performance.
Another reason I reset the portfolio to $10,000 each year is to make Options360 accessible for almost any account size. Again, as discussed during the webinar the average position size or maximum risk of each position is $300-$600. At any given time, we might have 5-7 open positions meaning the most we allocate is rarely more than $4,500 at any given time.
So, while I like to keep plenty of cash on hand as a “just in case” cushion for both making adjustments and taking advantage of any unusual situations, it is not a requirement for participating in all the trades.
As part of placing a priority on risk management, I’m of the firm belief that whether one is new to trading or a grizzled veteran, it’s crucial to keep your position size at a level in line with both your account size and risk tolerance.
As soon as you start looking at a trade through the lens of money you can make or lose, you start making emotional decisions and are much more likely to panic at the worst possible moment.
Also, it is much easier to scale up as the size of your account and comfort level grow. This is what I am here to help you with, avoiding common pitfalls and cut down on the learning curve that is quite long with trading options.
Too many trading services try to impress potential members by claiming they have a $100,000 or even $1 million account, so they can throw around impressive dollar gains when it’s the percentage return that matters. This ends up intimidating many people who feel, “oh, options trading isn’t for me. I don’t have enough capital to see these results…” Options360 is for every level of options traders, especially beginners.
So, if you had joined the service in 2015 and was comfortable increasing their position size to compound your gains, that original $10,000 would have grown into $537,000.
The 2023 reset is just around the corner. Time to take charge of your financial future.
Watch this webinar and make a decision on whether or not joining is right for you. Then get ready to start building your wealth-building journey.
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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