|
Don't
fight industry trends. Ride
them!
Learn which industry groups
are gaining or loosing momentum
- a great way to see which way
is flowing on Wall Street. The
leading market players look
far beyond individual stock’s
technicals. They think in terms
of sectors and shape up the
industry trends.
To avoid being manipulated
and take advantage of our market
knowledge.
| 2003
|
2003
Avg. Gain per
Trade |
2003
Avg. Holding
Period |
2003
Avg.
1-Day
Return |
|
"Buy
Call" Strategy
|
14% |
26 |
1.78% |
|
| 2004
|
2004
Avg. Gain
per Trade |
2004
Avg. Holding
Period |
2004
Avg.
1-Day
Return |
|
"Buy
Call"
Strategy |
14.3% |
57 |
2.53% |
|
"Credit
Put Spread"
Strategy |
17.9% |
40 |
0.55% |
|
Open
our full Track Record
for more details (2003, 2004) |
Industry/sector movements have
excellent trading vehicles -
exchange traded funds (ETF's)
and their options. You can ride
industry/sector trends using
our "SectorTrends" Service.
| How
it works? You
can trade ETFs and
stocks that are extremely
strong or weak within
the sector. As options
on many ETFs are thinly
traded and have wide
bid/ask spreads, some
trades in this service
will be on sector
component stocks.
For uptrending sectors,
option picks may be
on relative-strength
leaders. For sectors
trending down, we
may select weakening
stocks. We use our
state-of-the-art mathematical
models to identify
technical signals
and pre-select stock/option
picks with better
chances to win. We
take into consideration
both technical analysis
and option mathematics
so that you can reduce
risk and enhance return
of your portfolio. |
| Number
of trades.
Four to six per month. |
| Holding
period. 10-40
days |
| Number
of open positions.
6-8 |
| Entry
window. Typically
through the day following
the publication. |
| Managing
the Service. Minimum
account size is $4,000.
Allocations to each
trade should range
between 10 and 20
percent. |
What
is included?
- Weekly
Newsletter (sample
in PDF Format)
- Email
Trading Alerts
(on daily basis)
|
Absolute
Transparency! Our
Track Record (2003,
2004)
is based on actual
trades executed by
optionsXpress
brokerage
(learn more
about
our auto-trading program) |
| Reccuring
billing thru
2CO.com |
Non-reccuring
billing  |
|
|
$59.95/month |
$129.95/quarter |
|
|
|
|
|
|
|
|
Average "Buy Call/Put" Trade
(up to 4 open
positions) |
|
Avg.Holding
Period - 10
days |
|
Amount
per Trade
|
$700 |
$1,400 |
$2,100 |
$2,800 |
|
Number
of Contracts
with Average
Option Price
$5.00) |
1 |
2 |
3 |
4 |
|
Option
Price Increase |
$0.70 |
$0.70 |
$0.70 |
$0.70 |
|
Commissions
per Trade
($12.95 per
trade, $1.25
per contract) |
$25.90 |
$25.90 |
$25.90 |
$25.90 |
|
Net
Profit per
Trade |
$44.10 |
$114.10 |
$184.10 |
$254.10 |
|
Net
Gain per Trade |
6.3% |
8.2% |
8.8% |
9.2% |
|
Expected
1-Day Return |
0.8% |
1.0% |
1.1% |
1.2% |
* $1.25/contract,
$12.95 min /trade
(available at
optionsXpress)
|
Average
"Credit
Put Spread"
Trade (up to
4 open positions) |
|
Avg.Holding
Period - 20
days |
|
Amount
per Trade |
$370 |
$740 |
$1,100 |
$1,480 |
|
Number
of Contracts
|
1 |
2 |
3 |
4 |
|
Average
Initial Credit
|
$1.30 |
$1.30 |
$1.30 |
$1.30 |
|
Invested
per Spread
(higher strike
-lower strike-initial
credit) |
$3.70 |
$3.70 |
$3.70 |
$3.70 |
|
Average
Exit Debit |
$0.20 |
$0.20 |
$0.20 |
$0.20 |
|
Commissions
per Trade* |
$38.85 |
$38.85 |
$38.85 |
$38.85 |
|
Net
Profit per
Trade |
$71.15 |
$181.15 |
$291.15 |
$401.15 |
|
Net
Gain per Trade |
19.2% |
24.5% |
26.2% |
27.1% |
|
Expected
1-Day Return |
1.0% |
1.2% |
1.3% |
1.4% |
* $1.25/contract,
$12.95 min /trade
(available at
optionsXpress)
Available at thinkorswim.com
|
MORE ABOUT EXCHANGE TRADED FUNDS
In recent years, the unique features and benefits of exchange
traded funds (ETFs) have helped them
become one of the most flexible, multi-purpose
investment vehicles available. ETFs
are index funds or trusts that are
listed on an exchange and can be traded
intra-day.
What
can ETFs offer individual investors:
· Combination of advantages
of stocks and mutual funds.
· Wide range of investment
strategies.
· Buying and selling flexibility.
. Lower fees (ordinary
brokerage commissions apply)
Because
they are exchange traded, ETFs can be
bought and sold at intraday market prices,
purchased on margin, sold short, even
on a downtick (unlike common stocks),
and traded using stop orders and limit
orders, which allow investors to specify
the price points at which they are willing
to trade.
Exchange
traded funds are more predictable than
stocks, because each ETF is comprised
of a basket of securities and inherently
provides diversification across an entire
index. For the same reason ETFs are
less risky and less volatile than ordinary
stock. Investors can use ETFs to pursue
a wide range of investment strategies:
Core investment, Portfolio diversification,
Hedging, Rebalancing, etc.
| |
ETF |
Mutual
Funds |
|
Trading at intraday prices |
Yes |
No |
|
Type
of order |
Any |
Market
close only |
|
Availability
of options |
Yes |
No |
|
Suitable
for day-trading |
Yes |
No |
|
Dividend
reinvestment |
No |
Yes |
|
Short
selling |
Yes |
No |
|
Tax
efficiency |
Excellent |
Excellent |
|
Taxable
capital gains |
Minimal |
Minimal |
|
Broker's
commissions |
Yes |
No-loads |
|
Inflated
expenses |
No |
Yes |
to
the top of this page
Disclaimer
OptionSmart.com
(Stock Markets Institute) obtains
information from sources deemed to
be reliable. However,OptionSmart.com
(Stock Markets Institute) does not
guarantee the accuracy of any of the
information or commentary provided.
OptionSmart.com (Stock Markets Institute)
makes no warranties, expressed or
implied, as to the fitness of the
information for any purpose, or to
results obtained by individuals using
the information. In no event shall
OptionSmart.com be liable for direct,
indirect, or incidental damages resulting
from the use of the information. OptionSmart.com
(Stock Markets Institute) shall be
indemnified and held harmless from
any actions, claims, proceedings,
or liabilities with respect to the
information and its use. OptionSmart.com
(Stock Markets Institute) does not
make specific trading recommendations
or provide individualized market advice.
|