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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.

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?

If you plan to mirror one of our portfolios (or sign up for Auto-Trade with thinkorswim), the minimum amount varies between $2000 and $10,000 depending on which portfolio you choose and its current value.

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?

Our Basic and 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

April 22, 2015

Why Calendar Spreads Are So Much Better Than Buying Stock

One of the great mysteries in the investment world (at least to me, an admitted options nut) is why anyone would buy stock in a company they really like when they could dramatically increase their expected returns with a simple stock options strategy instead. Of course, buying options is a little more complicated and takes a little extra work, but if you could make two or three times (or more) on your investment, wouldn’t that little extra effort be more than worth it? Apparently not, since most people take the lazy way out and just buy the stock.

Today I will try to persuade you to give stock options a try. I will show you exactly what I am doing in one of my Terry’s Tips portfolios while trading one of my favorite stocks.

Terry

Why Calendar Spreads Are So Much Better Than Buying Stock

I like just about everything about Costco. I like to shop there. I buy wine by the case, paying far less than my local wine store (I am not alone – Costco is the largest retailer . . .

April 14, 2015

$20 Spread Investment Idea – a Bet on Oil

This week I would like to share an option spread idea which will cost you only $20 to try (plus commission). Of course, it you like the idea, you could buy a hundred or more of them like I did, or you could just get your options toe wet at a cost of a decent lunch (skip lunch and take a walk instead – it could improve both your physical and financial health).

The bet requires you to take a stab at what the price of oil might do in the next few weeks. Your odds of winning are surely better than placing a bet on a fantasy baseball team, and it could be as much fun. Read on.

Terry

$20 Spread Investment Idea – a Bet on Oil

I continue to investigate investment opportunities in USO, both . . .

April 3, 2015

Update on Oil Play Designed to Make 25% in One Month

About a month ago I sent out a strategy we were using to capitalize on the price of oil falling further (as many analysts, including those at Goldman, Citi, and Barclays, were predicting). We set up a small demonstration portfolio which had $2910 to start, and bought calendar spreads at the 18, 17, and 16 strikes when USO was trading at $18.45.

When the price of oil did retreat further, USO fell to about $17, and we sold our calendar spreads at the 17 and 18 strikes and replaced them with calendar spreads at the 15 and 14 strikes. Since the strike prices of calendar spreads is what determines whether you are bullish or bearish on the stock, when we had all our calendar spreads at strikes below the stock price, we were extremely bearish.

Then the stock turned around and headed higher, taking away the gains we had made, and we were right back to where we started. Today we made a new start, and I would like to share our thinking at this time.

Terry

Update on Oil Play Designed to Make 25% in One Month

USO is an Exchange Traded Product (ETP) which is highly . . .

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.

Order Now

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