1. What is the range of expected results for using the Home Options Trading process?
❑ Credit Spreads with 1%-2% at minimum and 3%-4% at maximum returns per day per trade, exited within 30 days, chosen for entry between 30-50 days, with a forecasted drop in IV of -10% within 30 days.
❑ Debit Spreads: 150%-200+% returns per trade, exited within 30-60 days, chosen for entry between 90-120 days, with a forecasted rise in IV of +10% within 30-60 days.
❑ Above 70% Win/Loss Probability with a Positive Expectancy as a Diversified Multi–Asset Class Trading System. No trade adjustments are needed.
❑ At the portfolio level in aggregate, an aggressive monthly gain of 7%-10% is possible. A more balanced monthly return of 3%-5% is a reasonable expectation.
2. What distinct elements will I learn about the Home Options Trading Process that sets it apart?
In essence, the trading process uniquely blends the Relative Strength measure (not the TA Indicator RSI) from Dorsey Wright, to target the relevant asset class within a multi-asset class portfolio to identify a probable trade; then, forecast Implied Volatility and Skew using tools from iVolatility to stringently test a potential trade's Theoretical Price and probability of profit versus its odds for a loss, based on IV and Theta changes, in the ThinkorSwim platform. Additionally, testing for the Probability of Touching specific strikes of a spread's construction is ingrained into each spread type's comprehensive trade plan. A uniquely designed process especially customized to treat options trading as a home business. For details, see the Original Curriculum.
3. Why did you price the Original Curriculum at USD $200 for 55 hours of learning?
The CBOE's Options Intensive, Advanced Level Seminar for 2 days costs USD $995.
An intermediate program should be reasonably priced, as affordable between USD $0 and USD $995. Get 55 Hours of the Home Options Trading course at USD $200, before the price is raised to $400. And receive an $800 options basic course as a Bonus! Recover the cost of the Curriculum in 1 to 2 trades - that's value!
I reluctantly label the Original Curriculum as "Intermediate" - there is no equivalent. Advancement comes as you deepen your existing skill set with practice each day, not by attending some 2 or 3 day/1 week seminar. Stop paying thousands for your options education.
- Insights into your own trading practices strengthens your foresight to take the next leap of faith. The conviction needs to come from within that you can (and must) progress every day and each week, to propel yourself further than you imagined.
4. Will I need to use ProfitSource, OptionGear, ValueGain, Optionetics' Platinum, OptionVue, Elliot Wave software, unique Technical Analysis Indicators or Fundamental Analysis packages, to replicate the trading methods unique to the Home Options Trading Process?
NO. None of the above tools are required. Why? Some are simply not useful and others are at a price point that exerts unnecessary pressure on the typical retail options trader's account (below USD $50K), to maintain profitable trading consistently, as the cost of multiple software packages (often with duplication of non-unique features) runs into the thousands, eating into the total operating cost of running a home business. There are more affordable tools to operate and sustain a profitable home trading business without sacrificing the consistency of results.
5. What tools will be used in the Home Options Trading Process and Why?
Dorsey Wright & Associates - Relative Strength service. Relative Strength's uniform measure based on straightforward numerator/denominator mathematics allows you to consistently cross over multiple asset classes: Stocks, Commodities, Currencies and Countries using optionable Indexes/ETFs.
❑ Fundamental Analysis software is reliant at its core on Financial Statements (Balance Sheet, Cash Flow & Income) which loses its relevance when you trade Indexes (there is no company to analyze per se) and there is even less relevance, when you move away from Equities to cross over into Commodity ETFs, Currency ETFs and Country Indexes.
❑ Diversification is not doing a mix of Verticals/Iron Condors/Calendars/etc.; but, all the trades end up in Equities - that's concentration risk in one asset class - Stocks. Fundamental Analysis software keeps you stuck in Equities and fails to allow proper multi-asset class diversification. Relative Strength overcomes this problem.
iVolatility's Hi/Low Indicator for forecasting Implied Volatility and Skew with data that separates the IV of Calls distinct from Puts, in addition to having the IV of Calls+Puts combined.
❑ Separation of Call IV and Put IV is absolutely critical to the construction of a spread. For e.g. in constructing a Vertical Put or Put Calendar, only Puts are used, no Calls; in constructing a Vertical Call or Call Calendar, only Calls are used, no Puts. But when constructing an Iron Condor or Straddle/Strangle, both Calls+Puts are used. Few volatility providers have Call IV data distinct of Puts at the affordable price point that iVolatility offers.
❑ Also, the Skew bias in most products (including highly liquid broad based Indexes), means the absolute value of the Call's and Put's Delta at each strike will not equal 1.00 exactly; along with the interest rate component built into the Call side that is absent from the Put side ... this means there is Put-Call DISparity (not parity). Another reason to get the IV data of Calls separate of Puts.
❑ The Hi/Low Indicator is built on a proprietary weighting method that measures extremes (0 = extreme low, 1 = extreme high) while removing variability to enable common comparison of IV at 30 day intervals, from which new Call/Put data points are built forward for 30, 60, 90, 120 & 180 days. This is the basis of forming the a forecast. IV near/at the extreme high of 1 means IV may fail to rise higher harming Debit spreads; or at IV near/at the extremes low of 0 may fail to fall lower harming Credit spreads.
❑ Other than a butterfly (be it as a conventional debit fly; or, modified as a credit fly) that is typically held till within expiration week or up to 1 day before expiration day itself, the remaining spread types: a Vertical, Calendar, Iron Condor, Straddle/Strangle, Back Ratios is exited well before expiration week, especially if the spread is constructed as a Net Debit spread.
❑ So, knowing the probability of expiring on the day of expiry itself has limited application. Butterflies should not make up the bulk of your core trades in the portfolio, Verticals/Calendars/Iron Condors should be the core trades. Meaning, there is a need to evaluate the changing probabilities of the majority of spread types between the day you fill the spread and the expiry date - which is what the Probability of Touch tool is designed to effectively do for spreads expiring within the same month. Calendars being inter–month requires separate treatment. Only ThinkorSwim's platform has the Probability of Touch tool. No other option's broker has it, not within the trading platform for free, at least.
At present, no. Home Options Trading is an independent firm. There are no commercial arrangements with Dorsey Wright & Associates, iVolatilty or ThinkorSwim.
7. Is there any upgrade after this course?
No upgrade, one course - that's it! The depth of what is covered in the videos is adequate to unlock beginner to intermediate traders out of the mould of convention, to think independently about defining their own trading methods. The Original Curriculum is deliberately designed for you to grow out of, for you to find your chosen path. This website in itself is a pre–cursor providing adequate representation of what to expect.
8. I understand all this options stuff, I just want some one else to trade on my behalf. Who do I speak to?
Home Options Trading does not trade on your behalf.
❑ For individuals with private capital of USD 250K and above, please speak directly to Steve Rashis, Scott Sheridan or Tom Sosnoff, contactable at www.tosadvisors.com or www.thinkorswim.com for your custom-fitted portfolio with individually-tailored risk management to suit your current and future needs.
- What do you do if you have capital to risk but the account size is not quite USD 250K? Then, consider Red Option's Autotrade strategy–based advisory subscriptions, to evaluate the trade-off between the amount of capital you are willing to risk versus the amount of effort you can commit to managing your own money.
❑ For those who dabble in options but still prefer a larger allocation of their capital towards equities, please check out Dorsey Wright & Associates' Money Management services.
- They offer Separately Managed Accounts which are continually fully invested (no idle cash) and have their own proprietary customized Funds and ETFs based on Dorsey Wright's Relative Strength methodology, to cater to both active/passive money management.
In both cases, kindly remember to state Home Options Trading as the source of referral ... please and thank you ... :o)
9. What was the motivation and conviction for founding the firm and starting this site? Like most of you who found it ...
Tired of being treated like a mushroom by large training firms. You know how mushrooms are grown ... feed them %@#! and keep them in the dark ... even a fungi finds its nerve to catch a glimpse of the light at some stage. This fungi grew legs.