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"SECTOR TRENDS" SERVICE

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 (20032004)

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)
                  Alert Sa mples
  
Absolute Transparency! Our Track Record (2003, 2004) is based on actual trades executed by optionsXpress brokerage (learn more about our auto-trading program) 
      
Auto-trade with our partner - the optionsXpress brokerage
     
LIMITED TIME OFFER:
     

Reccuring billing thru 2CO.com

Non-reccuring billing
2Checkout.com, Inc. is an authorized retailer of OptionSmart.com
 
$59.95/month
$129.95/quarter
   
 
ALLOCATION TIPS
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

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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.

Average 1-Day Return: 2.53%
Absolute Transparency! Our Track Record  is based on actual trades executed by the  optionsXpress brokerage. 
More...
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