OptionRun.com is an Option Website that does one direction Call/Put Plays: or $99/month
These guys are not looking to buyCalls on oversold/value stocks or Buy Puts on Overpriced/growth stocks. NO, they look to purchase Calls on Momentum Breakouts, and Puts on Chart Breakdowns. Most of the time they purchase Call/Put Options once the stock has made a considerable move upwards or downwards, by the time you buy the options your really just Hoping for follow through.
I investigated their annual results Starting from November 2007. The good news is they are very good in volatile years. 2008 was OptionRuns best year, in fact they made such a high return in 2008, that i beats their 2007,2009 and 2010 records combined.
The downside to using OptionRun.com is their accuracy of trades and losses. I have been trying to figure out how to make more money with them by tweaking the stop loss. When they send out a new alert, the stop loss is almost always 50%. However, as momentum traders understand...if the stock has not moved in the desired direction for 2-3 days you should just sell out...but these guys wait many times until they get hit with the 50% loss. If you take into the bid ask spread...by the time your 50% stop gets it, it's really going to end up a 55-57% loss because you have to sell at the bid(at market). After doing a study of their 2011 results I noticed that they could more than double their performance by having a 30% stop loss (Yes I did take into account all the winners they had, and how many of their winners would be stopped out due to a narrow stop). My opinion is that you could go as narrow as 15%-20%. Another problem with their stops is that if they invest in an option position worth approximatively 40cents or less...then they wont even place a stop!?!?! Either they will make money on the position or lose the ENITRE 100%...to me that is just pure reckless!
If your not one to handle 50% losses this services will e extremely nerve racking. My best advice is to paper trade, or see how the results change by using a 50% stop loss. Historically these guys have had 662 since November 6,2007. 287 trades were losers: averaging: 56% loss, On the plus side they had 375 winning trades (a bias being in 2007) averaging: 75.84%.
Losing Trades Since Inception: 287
Winning Trades Since Inception: 375
Accuracy: 56% (So only 56% of the time you will avg: 75% the rest of the time you will lose avg: 56%.....like I said this service can be nerve racking)
Trading Results: Not consistent, but profitable in the long run (they have huge potential to become very profitable if they would ONLY tighten their STOP LOSS!!!!!!!!!!!!)
Customer Service: Very friendly
Billing: Never any problems
Price: Given their results at first glance...I think anyone would pay $99/month for their service....however, the reality is you could end up starting their service and losing money right off the batt.....perhaps 4-6 trades will be 50% losers before you make any money. I recommend trading small in the beginning. You will quickly realize that a tighter stop is necessary
Overall: Use a small amount of money 200-500 per position, tight stops, enjoy the trade.
The service is not really worth $99 given the fact that you could start losing money as soon as you join. They should try to make you money immediately to lock in subscribers...but they just let positions hang out their until you get stopped out nearly 40% for an average of a 56% loss....it's nerve racking.....However I would recommend this service as a starting point into the world of trading options
This review is the subjective opinion of an Investimonials member and not of Investimonials LLC
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