from the desk of Dr. Terry F Allen

Skip navigation

Member Login  |  Contact Us  |  Sign Up

1-800-803-4595

Trading/Strategy Questions FAQ

Show All Answers | Hide All Answers

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 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 . . .

March 23, 2015

Trading Options Can be a Lifetime Learning Experience

Last week was a good one for the market. SPY rose 2.2%, a wonderful week. The actual options portfolios we carry out at Terry’s Tips had a stellar week as well. Nine of our ten portfolios gained at least 5%, and 3 of them gained over 33% in a single week.

Nike (NKE) announced blow-out earnings and the stock rose 6.4%. Our portfolio that trades NKE options gained 13.5%, double the increase in the stock price. This was far less than we usually do compared to stock price changes, however.

We have proved over and over that if you can find a stock that will increase if value, you can usually make 3 or 4 or more times as much with an options strategy as you could by simply buying the stock.

Of course, buying options is not quite so simple as buying stock. To do it right requires gaining some understanding that most people just don’t have the energy or willpower to learn.

Terry

Trading Options Can be a Lifetime Learning Experience

If the truth be known, investing in stocks is pretty much like playing checkers. Any . . .

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

Sign Up Your 2 Free Reports & Our Newsletter Now!

Sign up for Dr. Terry F Allen’s free newsletter and get immediate access to his most current report on his stock option trading strategies.

TD Ameritrade

Member Login  |  Programs and Pricing  |  Testimonials  |  About Us  |  Legal Notices  |  Accessibility Statement  |  Privacy Policy  |  Site Map

thinkorswim, Division of TD AMERITRADE, Inc. and Terry’s Tips are separate, unaffiliated companies and are not responsible for each other's services and products.

©Copyright 2001–2015 Terry's Tips, Inc. dba Terry's Tips

Close Window

Sign up for the Terry’s Tips Free Newsletter and Receive 2 Options Strategy Reports:

or

Login to Your Existing Account Now

No Thanks

Newsletter Signup

Member Login

Enter your primary email below, and we'll send you a new password