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Are you interested in simple and understandable instructions and suggestions for trading stock options? This website is for you!

  • Here is a summary of our results for the month of July 2008:

    HISTORICAL BACKTESTING RESULTS FOR THE PERIOD: 07/01/08 Thru 07/31/08          
    Strategy & Other Information: Number of Hits that Closed During this Period % of Total Total $ Option Gain  % Winners  Number of Positive Trades  Number of Negative Trades         Average $ Gain Per Positive  Contract:        Average $ Gain Per Negative  Contract: Average % Net Option Gain Average $ Net Option Gain
    Closed Normal Longs 5 8.6%         (300.32) 40.0%                    2                 3  $     338.24  $  (325.60) -13.3%  $          (60.06)
    Closed Normal Shorts 13 22.4%        3,925.76 69.2%                    9                 4  $     463.08  $     (60.48) 67.1%  $         301.98
    Closed Dead Cat Bounces [Longs] 36 62.1%        1,202.59 44.4%                  16               20  $     374.56  $  (239.52) 7.4%  $           33.41
    Closed Hot Cat Ricochets [Shorts] 4 6.9%        1,904.64 100.0%                    4                -    $     476.16  $             -   105.8%  $         476.16
    Total Trades: 58
    Total Option Gain:  $     6,732.67
    Total Number of Positive Trades: 31 Backtesting Theoretical Assumptions:
           Percent Positive Trades: 53% Positions opened and closed at the open of the day indicated.
           Average $ Gain Per Pos.  Contract:  $         411.02  Includes all options closed this time period (Including buys from previous month).
    Total Number of Negative Trades: 27 Option Delta = 0.64   (Based upon the DOW 30, March 14, 2008, One Step into the Money)
           Percent Negative Trades: 46.6% Option Cost  = Entry Stock Price * 0.064 + 1.0813    [R2 = 0.53]
           Average $ Gain (Loss) Per Neg. Contract:  $      (222.56)    (Based upon the DOW 30, March 14, 2008, One Step into the Money)
    Avg. Cost per Contract:  $         619.34 Catastrophic Stop Loss:  $500
    Avg. $ Gain per Contract:  $         116.08
    Avg. % Gain per Contract: 25.8%
    Normalized Gain: 567.5%

    To see detailed Historical Results for this month and other months & quarters
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  • The proprietary algorithms were developed by two Ph.D.s. [ Who are we?]
  • You will Learn how to analyze the entry/exit picks.
  • You will trade only the best options: NASDAQ 100 and S&P 500.
  • You will learn how to specialize in true swing trading with an average holding period of 10 days
  • You can not afford to miss miss the picks from this service!

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Other Thoughts:

  • AOT Picks are generated using a technology-based automated process.
  • Stock and Option Trading is a rewarding method of developing and maintaining a cash flow for personal and investment objectives.
  • The percent gain for options is much greater for the amount of initial capital invested as compared to stocks.
  • The amount of the initial investment is much lower than stocks.
  • There is a minimal loss that you can suffer with an option ---- the cost of the contract.
  • Our Trading Strategy is based upon swing trading. We enter and exit a trade within about 3 to 15 days with an average holding period of 10 days.
  • We do not hold past 22 days.
  • Our Strategy identifies those stocks the are poised for short term gains (call options) or losses (put options) using our proprietary algorithms.
  • After further careful evaluation and then answering basic questions we then may trade the options that are associated with that acceptable stock.
  • We only trade options of stocks that are on the S&P500 and the NASDAQ100. There are about 540 stocks which we evaluate on a daily basis. Consequently , there are a plethora of candidates.
  • We have been doing this for years now and are confident that you too will make rewarding option trades.
  • You can see an option chain by going to: http://biz.yahoo.com/opt/      
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