When you sign up, you’ll join an elite group of 22,899 other options traders receiving OTR Pro Trader alerts. All members get access to the weekly options trade ideas… AND a complimentary subscription to Options Trading Research… one of the most widely read options trading newsletters on the planet!

All of this information and the weekly options trades are great… but why is it free?

It’s a great question and I’m glad you asked.

You see, we offer two premium services, the Options Trading Wire and Advanced Options Adviser. Both are paid services…

We figure if you see how great our FREE options picks are… you’ll eventually want to sign up for our premium services too. Sneaky, yes. But, at least I’m honest about it. It’s like a free sample they give you at the grocery store… give it a try and if you like it buy!

Now, we realize not everyone will want to subscribe to the premium service. After all, not everyone who gets a sample at the grocery store buys the product!

A lot of options traders simply want free trade ideas… so, that’s what we’re offering in the OTR Pro Trader.

There are a few things that make the OTR Pro Trader different…

But before I get to that, I want to share with you how we make the options picks for the service.

The success secret lies in 3 “New Rules” that we learned from a master options trader.

By following them, you have a great shot at successfully harnessing the power of options– and make your money worries a thing of the past!

“New Rule #1: Don’t Buy Any Option That’s Priced Over $3.00!”

Look, it’s no secret that the way to make big money — whether you’re investing in stocks, bonds, real estate, or options — is to buy low and sell high.

That’s just common sense…

Buying undervalued assets is the quickest way to wealth that I can think of, besides winning the lottery!

And the best way to find an undervalued option is to look at those trading at $3 or less.

Inexpensive options give you the chance to get the triple- and quadruple-digit returns that every investor craves.

Those kind of returns can still happen with more expensive options, but it’s a lot less likely.

I don’t have time to go into all the math and formulas that prove this, but just think what would be a more realistic outcome:

An option moving from $1 to $5… or one moving from $5 to $25.

Believe me when I tell you, options move from $1 to $5 all the time!

But it’s fairly unusual to get that big of a move, percentage-wise, with higher priced options.

The lower priced options give you the leverage you need to make options trading work.

Let me give you a real-life example:

Not too long ago, giant retailer Target (TGT) reported an earnings number that wasn’t great.

Because the analysts didn’t like the number, the stock fell to about $49.02.

It was an opportunity.

Target’s stock had fallen way too much based on the news of this earnings report– and everyone knew it would rebound.

We found a cheap call option trading for $1.52 a contract.

As expected, Target’s stock recovered over the next seven weeks to about $56 a share.

Now that’s a 15.4% move in the stock, which is nothing to sneeze at.

But remember those cheap options?

Well those moved up 466% over the same time period… from $1.52 to $8.60.

Now that’s more like it!

We’ll take over 5 1/2 times our money any day over a measly 15.4%.

And remember, this happened in just seven weeks.

Now, would an investor have made money if he purchased the more expensive call options on Target?

Of course.

But it wouldn’t have been anywhere near the amount you’d make buying the less expensive option.

And if you do the math, that’s always going to be the case when buying options. Cheaper ones simply move more on a percentage basis.

So don’t let any of the ‘so-called’ experts fool you– when given a choice, always try to buy options trading for $3.00 or less per contract.

Do that and you’ll see a big difference in your results!

“New Rule #2: Only Buy Options That Expire In 5 Months Or Less– You’ll Get More Bang For Your Buck!”

Look, I know a lot of you think it’s safer to buy options that are many months and even years away from expiration. It’s a huge LIE that’s been fed to you by your broker and the Wall Street manipulators!

But the truth of the matter is, you’ll be a lot better off keeping your expiration month just a few months out.

Similar to the first rule, shorter expiration options will move much more quickly than long term options, all things being equal.

To prove my point, let’s take a look at a trade in Clean Energy Fuels (CLNE).

A few months back, this stock looked extremely overpriced.

And to take advantage of it, you could buy some put options against the stock (for those who don’t know, you buy put options on a stock when you think it’s going to fall).

Anyway, when looking at the option tables, there were some puts that were just two months until expiration and were trading at $1.15 a piece.

Now, an investor could’ve selected one that expired a year from now.

But the wise options trader knows better.

A few weeks later, Clean Energy did indeed fall, and the put options increased in value by 196%.

That’s enough to nearly triple your money!

If the longer expiration options had been selected, only a fraction of the profits would’ve been made.

This phenomenon is based on the delta of an option, which is a little complicated for our discussion here…

But the key takeaway is this: always buy shorter term options if you’re looking to maximize your gains while trading options.

For most investors, that’s the better strategy…

“New Rule #3: Don’t Over-Diversify Your Options Portfolio– You’ll Only Serve To Limit Your Gains!”

This is another ‘rule’ that a lot of people are going to get upset about…

But if you want to truly make as much money as you possibly can with options, it doesn’t make sense to hold too many positions in your portfolio.

I’ll say it again, unlike with stocks, it just doesn’t help your cause having dozens or even hundreds of options positions active at the same time.

For investors trying to generate outsized return, and still limit their risk, 5-10 option positions can be ideal.

That way, when you hit a big winner, it’ll have a significant effect on your portfolio.. and consequently, your bank account.

Let me give you an example of what I’m talking about here.

A while back we looked at some Caterpillar (CAT) call options.

Fortunately, the stock rallied, and the options soared 524% in less than a month’s time.

Now, if you had 50 positions, all equally weighted, your portfolio would increase in value by 10.4% due to this move in Caterpillar.

On the other hand…

If you had just five positions, and one of them was those CAT options, the portfolio would be up 204%.

That means the entire account would TRIPLE just by hitting that one big winner!

That’s the power of keeping your number of positions a little smaller than you normally would with other investment vehicles.

Come to think of it, this rule reminds me of a quote by Andrew Carnegie, one of the richest American industrialists of all-time:

“The wise man puts all his eggs in one basket and WATCHES THAT BASKET.”

I couldn’t have said it better myself!

Now A Warning About Trading Options

The problem with options trading is, you have limited risk and unlimited gain!

You read that right. With options your risk is strictly limited to how much you paid for the option (plus any commissions). So, if you buy an option (call or put) for $140, that’s the maximum you can lose on that trade.

There is absolutely nothing that can occur in the market, with your option, or the stock it is based on to change that.

Conversely, the potential gain on any call option is theoretically unlimited. If the underlying stock of a particular option keeps going up and up, the value of the option will keep going up and up.

This is why you see option trades that go up, 100%, 200%, 500% and more!

With a put option, your gain is limited by how far the underlying stock can go down, which is zero. But remember, if the underlying stock you bought a put option on goes to zero, you will have made a great deal of money (often in the hundreds or thousands of percent)!

I want to state that first part again here because there are a lot of misconceptions about options out there.

When BUYING call and put options, your risk is NEVER, EVER more than the price you paid for the option (plus any commissions or brokerage fees).

Remember we do our best to pick as many options winners as possible… but hitting a homerun every at-bat is impossible… and so is trading options without having a loser on occasion.

Many investment experts suggest putting no more than 5% to 10% of your risk capital into any one strategy (and some suggest less than that).

*By risk capital, we mean money that you could lose without adversely affecting your lifestyle. You never want to invest in options with money that you cannot afford to lose such as money for college or house bills. And never borrow money to invest in options.

What Makes OTR Pro Trader Different?

I promised to share this information with you… and it’s critical you understand it.

OTR Pro Trader is meant for experienced options traders.
Does that mean we’ll be kicking new options traders out… NOPE.

But our trades are meant for experienced traders. If you don’t know the difference between a PUT and a CALL, if you don’t know how to place a trade… if you don’t understand options, this may not be the service for you.

You see, because this service is free, it’s bare bones.

We’re not giving you a quick start guide, or an options 101 report. We don’t explain the ins and outs of the trade… members of the OTR Pro Trader are responsible for their trades… getting in… and getting out.

These are trade ideas, not a portfolio. So, we won’t be updating trades, or talking about the market. We’re not posting to a website and trying to update everyone with every tick. Trade alerts are sent by email… and it’s up to you to monitor the position.

OTR Pro Trader is options trading ideas pure and simple.

It’s what experienced options traders want… without all the fluff!

If you’re ready to start options trading with OTR Pro Trader, then sign up now…

This is an advertisement and not a news article.  Terms of Use and Privacy Policy
Includes a free subscription to the Options Trading Research newsletter.
CANADIAN RESIDENTS – PLEASE CLICK HERE