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Auto-Trade with tastytrade

How much does it cost?

Our subscription is $1,970 yearly or $197 monthly. One of the great features is that the cost of the program does not come out of your invested capital as it does with so many other investments.

How do I sign up for Auto-Trade?

First you would sign up for our Premium membership and select the portfolio(s) you'd like to follow. Then you would open and fund an account with a participating broker, select Terry's Tips as your newsletter provider, and select the number of units of each portfolio you would like to trade. Full instructions are provided for our members.

What brokers offer Auto-Trade?

Contact us directly for more infromation about brokers and Auto-Trade

Does my Auto-Trade account have to be separate from other accounts?

It is recommended that you set up a separate account for Auto-Trade although it is not necessary.

Can I get out of the Auto-Trade program at any time?

Yes, you may cancel at any time. You must cancel with Terry's Tips as well as with the broker. You are responsible for removing any current positions from your account when you cancel.

Do you have access to my Auto-Trading account?

No. We have no access to your personal accounts. We have no idea how much money you have invested or what other holdings you have.

What should I do if I decide to add (or remove) other portfolios through Auto-Trade?

Please email autotradeREMOVETHISBEFORESENDING@terrystips.com with the name of the portfolio you will be adding (or removing). Your billing will be adjusted accordingly.

Can I still join a portfolio even if I missed the start date?

Yes, a member may join any current portfolio. The only thing to note is that the unit amount is no longer the flat starting value. Once the portfolio starts trading, the unit value becomes a variable and is based on the actual account value. If you are not an Insider of Terry's Tips, please inquire about the most recent unit values for our various portfolios at autotradeREMOVETHISBEFORESENDING@terrystips.com.

Current Terry's Tips Insiders can learn the approximate amount required to join any of the current strategy portfolios by reviewing the Summary of Strategy Portfolios chart in our Saturday Report.

Is there a limit to how much I can invest?

No. There is no limit to how much money you can invest. In fact, we know nothing about your account or how much investment capital you have devoted to mirroring our portfolios.

Is there a limit to how many people or how much total capital this program can handle?

At the present time, we are not worried that the collective trades of Terry's Tips subscribers who have signed up for Auto-Trade with their brokers will affect the market. In fact, our experience has been that the larger the number of options your broker places as a single order, the better the price that can be negotiated.

When option positions are put on, the person on the other side of the trade is usually a market maker (Terry used to be one, so he has a solid understanding of how they work). The market maker earns his living by buying at the bid price and selling at the asked price - the more action for him, the better. He usually seeks a delta neutral position, so that he does not care which way the market moves.

There are dozens of other spread strategies a market maker employs - including buying or selling the stock, use of both puts and calls - back spreads, butterflys, trading against the box, ratio spreads, vertical spreads, diagonal spreads, straddles, and even strangles. Whenever a market maker is faced with a large demand for one particular option, he will use that demand as part of a larger strategy he is following. The bottom line is that large numbers of any single option can be traded without affecting its price (this does not hold true for less-actively traded options in individual companies, however).

Customer Service/Account Management

How can I access the Insiders page and my user control panel?

You can access the Insiders page and your user control panel by clicking here. You can also access this page from our homepage - terrystips.com. There is a link to log in as a member in the upper right corner.

How can I update my credit card information?

Please contact us directly if you wish to update or change your payment method.

How can I update my personal information?

Personal information can be updated from the user control panel. Choose "Edit My Account" from the menu on the left.

How can I cancel?

You may cancel by emailing colin@terrystips.com or submitting a form in our contact page, and notifiying us you want to cancel. Your membership will continue through the end of the paid period.

How can I contact you?

You may contact us by email at terryREMOVETHISBEFORESENDING@terrystips.com or by phone at 800-803-4595. There is also an email form provided inside your user control panel.

Subscription Questions

What is the difference between the Basic and Premium membership?

We currently only offer one level of membership to new subscribers, which is our Premium membership. Pre-existing subscribers who were already enrolled in our Basic service may continue at that level. Subscribers to our Basic service have access to the Insiders page where we post all Trade Alerts, weekly reports and any special reports. Premium members receive the same, but in addition may opt to receive real time Trade Alerts and are eligible to participate in any Auto-Trade program offered by their broker.

How are your membership materials delivered?

All materials are emailed to you at the email address you provide when joining. You will receive your copy of the White Paper immediately after you join. The first Options Tutorial is emailed to you 24-48 hours after you join, and will continue, one tutorial per day for 14 days.

Do you have a free trial?

We currently do not have any trails available.

Can your strategies be used by people outside the United States?

Yes. International members may open an account with a participating broker to trade the strategies on the U.S. market.

How easy is it to get started?

All it takes is a brokerage account (at a brokerage which offers Auto-Trade for Terry’s Tips Trade Alerts if that is the subscriber’s aim) with at least $5000 in it (or $10,000 for most of our portfolios), and signing up for a Terry’s Tips subscription.

What type of option knowledge do I have to have to use your program?

We recommend that subscribers become as knowledgeable as possible about stock options, particularly the risks involved and how the Greek measures help quantify that risk. However, once a subscriber becomes familiar with the underlying premise of our strategies, he or she might mirror our trades (or sign up for Auto-Trade with their broker) without understanding all the nuances of option trading.

Could a "newbie" follow your program?

Many of our subscribers are new to options. The program is designed to provide information about the strategies in a clear, easy to understand manner. In addition, their broker may offer Auto-Trade in case they do not have the time to fully learn the strategies.

What portfolios do you offer?

Information about each portfolio may be found on our Track Record page.

What type of membership do I need in order to participate in Auto-Trade?

In order to participate in Auto-Trade you need to sign up for our Premium membership (because real-time delivery of Trade Alerts to your broker is necessary for Auto-Trade). You can do so by selecting the Premium Service with Auto-Trade on our order page. If you are already a Basic member, you can easily upgrade to the Premium membership by contacting us.

What kind of support do you offer your members?

We are available by email or phone to answer your questions about options and the specific strategies. Since we are an investment newsletter rather than licensed investment advisors, we are not allowed to make any personal recommendations or provide individualized investment advice. You can reach us by email at terryREMOVETHISBEFORESENDING@terrystips.com or by phone at 802-877-8330.

Why should I choose your service over the others?

For the past few years, our portfolios have gained an average of over 40% a year, and several portfolios have earned over 100% a year. Each portfolio is an actual brokerage account, and our results include all commissions on all trades. We provide a level of disclosure that very few other newsletters offer – every trade we make in every portfolio is available to every subscriber. We don’t hide our losers under the carpet like most newsletters do.

What if I have a question that hasn't been answered here?

Please feel free to email us at infoREMOVETHISBEFORESENDING@terrystips.com or call us at 802-877-8330 with any other questions.

Trading/Strategy Questions

Can your strategies be used in an IRA account?

Yes, all the portfolios we maintain may be traded in an IRA account through many brokers. However, auto-trade in and IRA account may not be allowed by brokers.

Do your portfolios trade on margin?

No. The portfolios we maintain do not require the use of margin.

What is the minimum amount required to trade?

The minimum amount varies depending on which portfolio you choose and its current value. For 2021 all portfolios started with $10,000. Please contact us for more information.

Under what type of market conditions do your strategies work?

The majority of our portfolios are designed to make a profit in a flat or up market.

Do your strategies make money in down markets?

One of our portfolios, the 10K Bear, was set up to provide protection in case of a lower market. It is designed to make money in a flat or down market. The other portfolios are designed to make money when the market stays flat or moves up slightly.

Do you have a strategy that allows for monthly profit-taking?

Cash withdrawals will be made from most portfolios in increments of 3% of starting portfolio value. For example, for a portfolio with a starting value of $10,000, on the Monday following each monthly expiration, $300 will be taken out of the account if the account balance is over $10,300. If a gain of over $600 is made in a month and the portfolio balance is over $10,600, $600 will be removed that month. The goal is to remove $3600 from the account over the course of a year and continue to maintain the $10,000 starting value.

Where can I find a listing of your current positions?

The latest positions for each portfolio are reported each week in the Saturday Report, which may be found on our Insiders page.

Will I receive notifications when you place trades in your portfolios?

Premium members receive notification of all trades made in any of our current portfolios at the end of the day. Premium members also may opt to receive real time alerts for the portfolio(s) of their choice.

How many trade do you place each week/month?

This varies based on the portfolio, the movement of the underlying stock/index, and the time of the month. Most trades are made during expiration week, though trades are also placed whenever they are called for by our trading and adjustment rules.

Do you use puts or calls in your portfolios?

We use both puts and calls in our portfolios. Some portfolios are set up to use either puts or calls exclusively, while others involve the use of both puts and calls.

How risky are your strategies?

Options are leveraged investments and involve a higher degree of risk than most conventional investments (otherwise, the high returns that we have enjoyed would not be possible). However, since all of our strategies involve being both long and short options concurrently, we have some protection against the market moving in either direction, and since our long positions always have a longer life span than our short options, there will always be a residual value in our portfolios no matter what the market does (i.e., it is not possible to lose the entire amount invested as long as you are mirroring one of the Terry's Tips portfolios). 

How do you manage risk?

We have a well-defined set of Trading Rules to manage risk. In addition, each week in the Saturday Report, we publish a graph that shows the loss or gain that will result in each portfolio at the next expiration at a large range of possible underlying stock prices so that subscribers can visually see the risk profile of each portfolio on an ongoing basis.

Terry's Tips Stock Options Trading Blog

November 22, 2021

On Target Trade


Target
(TGT) reported earnings before the bell on Wednesday that beat estimates on
both revenue and profits. The company also expects its fiscal Q4 comparable
sales growth to be higher than previous forecasts. Moreover, TGT claimed the
supply chain mess has not been an issue - store shelves are full and ready for
the holiday buying onslaught.





Analysts
were mostly bullish on the report, giving TGT several target price increases
(there was one lower price). One went as high as $350, a 38% premium to
Friday’s closing price. The stock price was not rewarded, however. The shares
dropped 4.7% on Wednesday and slid further the rest of the week. However, this
was a common theme among several retailers, including Walmart (WMT). In fact,
the overall retail sector was lower for the week.





The pullback dropped the shares to just above their 50-day moving average (blue line in chart). This trade is thus a bet that TGT will regain its footing and stay above the 50-day as holiday sales numbers – that are predicted to be robust – start rolling in. The short 245 strike (red line) of our put credit spread is below the 50-day, relying on trendline support to hold through expiration.









If
you agree that TGT will stay atop its 50-day moving average line in chart),
consider the following trade that relies on the stock remaining above 245  (through expiration in six weeks.





Buy
to Open TGT 31Dec 240 put (TGT211231P240)

Sell to Open TGT
31Dec 245 put (TGT211231P245) for a credit of $1.60 (selling a vertical)





This
credit is $0.02 less than the mid-point
of the option spread when TGT was trading around $251. Unless the stock rises
quickly from here, you should be able to get close to this amount.





Your
commission on this trade will be only $1.30 per spread.  Each spread would then yield $158.70. This
trade reduces your buying power by $500 and makes your net investment $341.30
($500 – $158.70) for one spread.  If TGT
closes above $245 on December 31, both options will expire worthless and your return on the spread would
be 46% ($158.70/$341.30).


November 15, 2021

An AFRMation Trade


Affirm
Holdings (AFRM) provides a platform for point-of-sale payments for consumers
and merchants. In August, AFRM announced a partnership with Amazon.com (AMZN)
to offer flexible payment solutions to customers with AMZN purchases above $50.
AFRM reported earnings on Wednesday after the bell that missed on profits but
beat on revenue. The company also raised sales guidance.





Wall
Street apparently forgave the earnings miss, largely because it was not clear
if the discrepancy used comparable numbers. Moreover, AFRM said its AMZN
relationship as a buy-now-pay-later service was exclusive. Clearly, analysts
were looking at AFRM’s growth prospects, as the company was greeted with
several target price upgrades that reached as high as $185 (the stock closed at
$149 on Friday).





After a nasty, four-day 21% plunge heading into earnings that pulled the stock to its 50-day moving average, the stock rebounded 13.7% the day after the earnings news. Given the earnings rebound, analyst target upgrades and deal with AMZN, we are going with a bullish trade on AFRM that keys on the stock maintaining its three-month rally and staying atop its 50-day moving average (blue line in chart). The short put strike of our credit spread sits at $133 (red line in chart), just below the 50-day.









If
you agree that AFRM will continue its uptrend and stay atop its 50-day moving
average line in chart), consider the following trade that relies on the stock
remaining above $133  (through expiration
in seven weeks.





Buy
to Open AFRM 31Dec 128 put (AFRM211231P128)

Sell to Open AFRM 31Dec
133 put (AFRM211231P133) for a credit of $1.85 (selling a vertical)





This
credit is $0.05 less than the mid-point
of the option spread when AFRM was trading at $149. Unless the stock rises
quickly from here, you should be able to get close to this amount.





Your
commission on this trade will be only $1.30 per spread.  Each spread would then yield $183.70. This
trade reduces your buying power by $500 and makes your net investment $316.30
($500 – $183.70) for one spread.  If AFRM
closes above $133 on December 31, both options will expire worthless and your return on the spread would
be 58% ($183.70/$316.30).


November 10, 2021

A Me(h)T Trade


MetLife
(MET) won’t get anyone’s juices flowing. It’s frankly a rather boring insurance
and financial services company that’s been around for 158 years. But who cares …
if we can make money on a trade, right?





MET
reported earnings last week that beat estimates on the top and bottom lines.
Hardly anyone noticed. Analysts were silent. There were no stories other than a
dry listing of its key performance numbers. And the stock fell 2% the next day.
Ho hum.





But MET is up 36% for the year, which is well ahead of the S&P 500’s 25%. After a swoon in June and July, the stock has been grinding steadily higher along the dual support of its 50-day and 200-day moving averages. The key is the 50-day (blue line in chart), which has allowed just three daily closes below it during the past three months. This trendline, which is rising slightly, sits at $61.10, which is above the short strike of our put spread trade. Thus, MET would have to pierce this support to hurt this trade. And the 200-day (red line in chart) sits at $61 to provide another layer of support. The last time MET closed below the 200-day was more than a year ago.









If
you agree that MET will continue its slow ascent and stay atop its 50-day
moving average line in chart), consider the following trade that relies on the
stock remaining above $62.50  (through
expiration in six weeks.





Buy
to Open MET 17Dec 60 put (MET211217P60)

Sell to Open MET 17Dec
62.5 put (MET211217P62.5) for a credit of $0.75 (selling a vertical)





This
credit is $0.04 less than the mid-point
of the option spread when MET was trading at $64. Unless the stock rises
quickly from here, you should be able to get close to this amount.





Your
commission on this trade will be only $1.30 per spread.  Each spread would then yield $73.70. This
trade reduces your buying power by $250 and makes your net investment $176.30
($250 – $73.70) for one spread.  If MET
closes above $62.50 on December 17, both options will expire worthless and your return on the spread would
be 42% ($73.70/$176.30).


Making 36%

Making 36% – A Duffer's Guide to Breaking Par in the Market Every Year in Good Years and Bad

This book may not improve your golf game, but it might change your financial situation so that you will have more time for the greens and fairways (and sometimes the woods).

Learn why Dr. Allen believes that the 10K Strategy is less risky than owning stocks or mutual funds, and why it is especially appropriate for your IRA.

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