Introducing Trader's Edge: Enhance Your Investment Strategy with Options Trading
Leverage DynaLogic Signals and Relative Strength Indicator for Potential Short-Term Gains on Put and Call Options Matching Our Criteria
We are excited to launch "Trader's Edge," a new premium feature of "The Investor's Compass." For the last several months, we have been using DynaLogic signal data and Relative Strength Indicator (RSI) information to initiate put and call option trades. While not all trades ended on the plus side, by practicing stringent stop losses and exiting when our price objectives were met, we were able to accrue significant profits for the capital at risk. We believe we have now solidified a repeatable process for identifying potential trades.
We will be including Trader’s Edge and sending all of our signal data, currently only available to premium subscribers, to ALL subscribers for the next 2 weeks through 7/22. After this 2 weeks, we will be sending our daily signal data, to be used for long term strategically rebalancing your portfolio, to our free subscribers.
The full table with all of our signal data including current zone and RSI reading on all 350+ securities we track, along with our Trader’s Edge options trades will only be available to our premium subscribers.
With the incorporation of Trader’s Edge and the strong potential for short term ROI we believe it provides, we will be raising our subscription price to $49/month or $399 annually. Current paid subscribers will be grandfathered into their existing price as long as they maintain their subscription.
Through 7/1, we are offering a 20% discount to our existing subscribers who decide to upgrade to our premium subscription. Click below to take advantage of that discount today!
See below for more information on Trader’s Edge
Most trade ideas occur when securities are in a DynaLogic Zone 1 classification (substantial upside opportunity) for either a Put or Call, or in a significantly overbought (RSI > 70) or oversold (RSI < 30) position. We do not expect to offer trading ideas every day, as our identification process is highly selective. Additionally, our ideas are based on trend changes or the continuation of a trend.
If you are new to options trading, you should first familiarize yourself with the characteristics of options. There are numerous online self-help short courses available to improve your knowledge base.
What Are Options?
Options are financial contracts that give the holder the right to buy or sell a financial instrument at a specific price for a certain period. Options are available for numerous financial products, such as stocks, funds, commodities, and indexes.
Advantages of Options:
Increased cost-efficiency
Potentially less risky than equities
Potential for higher percentage returns
Offer strategic alternatives for investors
Provide a mechanism for investing in potentially overvalued securities positioned for a price decline (PUTS)
Main Risks of Option Trading
Options buyers can lose 100% of the premium paid for options that expire worthless. The main downside risk is the upfront payment, while potential profits often offer higher upside potential. Options expire per their contractual dates, so new traders sometimes fail to pay attention to the expiration date.
Why Do Most People Fail at Options Trading?
Most people fail at options trading because they have not taken the time to learn how options work and how volatility affects options pricing. People often lack sufficient knowledge about how to use options properly and may not have prepared a trading plan for minimizing losses, which includes understanding and preparing for trading risk when using options.
With online brokerages providing direct access to options markets and very low commission costs, retail investors now have the ability to use a powerful tool to mitigate risk and leverage gains.
Historical Trades
From April 18 to June 28, we executed a series of option trades (long only puts and calls) based on DynaLogic signals and RSI. While not all trades were successful, and the trade sizes were small, we were able to limit most losses to around -40% by using strict stop losses. On the upside, we aimed for a 20-40% increase and had some trades that exceeded 50%. Some trades were closed out due to time decay. Over this period, the maximum invested was $1,479, with an average invested of $618. The realized gain for the period was $806. That’s 130% return on the $618 average invested. Additionally, 65% of the trades were positive trades. We believe our stringent selectivity process and loss thresholds will continue to result in positive outcomes.
The Trader's Edge is now a part of The Investor's Compass, and we will be increasing the fee to $49/monthly and $399/annually. Existing free subscribers will be granted two weeks of free access to observe and benefit from The Trader's Edge. Additionally, our free subscribers will receive a 20% discount if you sign up during the next 2 weeks. For our paid subscribers, your current subscription cost will be grandfathered in unless you cancel your plan.
By combining DynaLogic signals, RSI, and the new Trader's Edge feature, "The Investor's Compass" now offers a comprehensive toolkit for both long-term portfolio management and short-term trading to include options. Upgrade your subscription today to access these powerful features and take your investing to the next level.