Getting Started in Options Trading Just Got Easier!

Option trading offers some great opportunities to profit and build wealth… but it’s pretty challenging to learn and many people quit before they really get started. Our new “EWO Time Strategy” trade alert and education service is designed to get you over the first few difficult steps, deliver a positive (and hopefully profitable!) start and help you maintain enthusiasm to build confidence for a longer career as a trader.

We’ve been teaching people to trade options for over 25 years and our new EWO Time Strategy has been created to minimise all the negative experiences that knock the wind out of new option traders. Let me take you through the key points:

#1 – Time Is On Your Side

Most of the time when people start trading options, they start by buying puts or call options. While this seems simple, it means that as soon as you buy those options time decay is against you and unless you get a substantial move quickly, you are watching the value of your options positions erode until they expire worthless and deliver you a big loss. Our Time Strategy is specifically designed to avoid this situation. We teach and alert you to trade opportunities using option strategies such as Calendar Spreads, Diagonal Spreads and Butterfly Spreads. These types of option trades put time decay in your favor by allowing you to sell options rather than just being a buyer of options. This means that as time decay erodes the value of options, you’ll profit rather than experiencing a loss. This is a BIG reason that this type of trading will keep you engaged rather than demoralizing you as you see red ink growing in your account.

#2 – Risk is Limited

Despite the fact we are using strategies that allow us to be sellers of options rather than buyers, we are never short “naked” options. In other words, for each one of the option strategies described above we are creating a spread that covers our risk. You’ll learn how each of these works as part of the substantial education that we provide to all or our subscribers.

EWO - balance trading risks and rewards

#3 – Drawdowns are Minimal

One of the great benefits of the type of option positions we use as part of the EWO Time Strategy is that they don’t deplete the balance of trading capital in your account to establish them. Because you are setting up a spread where you sell options and buy cheaper ones to cover risk, the net cost to enter each trade is smaller and they typically start to profit immediately as time decay erodes the value of the options you’ve sold. This means that even when you get started you are not having to outlay a large portion of your account to establish positions.

#4 – Win Ratio Over 75%

Another part that can be hard for new traders is having a low win ratio. It’s not uncommon for many strategies, including our own Volatility Strategy to have % win ratios of 60% or even less. This is ok because the losing trades are small loses while the winners are bigger making the strategy profitable overall. However, this can be really challenging for new traders who feel like they are experiencing to many losing trades and give up. This is why our new EWO Time Strategy employs A.I. to select the trading opportunities. It’s a ground breaking approach that means we can have the A.I. do far more sophisticated analysis than a human alone can perform. The results so far have been outstanding with a win ratio of greater than 80%. Obviously past performance doesn’t guarantee future performance but certainly having a high win ratio like this makes it easy to be excited about a greater number of winning trades.

#5 – Trade Duration is Short

Another benefit of the approach employed by our new EWO Time Strategy is that trades are typically only 20 days in duration. One of the problems for new traders is having the fortitude to stick with trades. This strategy means that most of your trades are entered and finished in just three weeks. That helps you feel like you are progressing and gaining confidence rather than being in trades that may take a couple of months to complete.

#6 – Allows Smaller Positions

The EWO Time Strategy also provides the opportunity for new traders to enter smaller positions. Psychologically this can be a great benefit for new traders who just want to put their toe in the water. Unlike our Volatility Strategy or Impulse Strategy where you are only buying options, the new Time Strategy employs options positions where you are also selling an option. This reduces the net cost of the position. While we still size each position at approximately $500 risk, it typically takes several contracts to reach this level. This gives a new traders the choice to take less contracts and therefore create a smaller position.

#7 – Education is Included!

Finally, and very importantly our EWO Trade Alerts service include substantial education. If you’d like to see the type of educational courses that subscribers have access to you can check them out here. As a new trader it’s impossible to explain how much benefit you’ll receive from having the real-life experience of real Trade Alerts couple with the theoretical education. Putting this all together makes it click all the more quickly than either alone!

In summary, we are very excited to be adding the Time Strategy to the list of available strategies. We’ve also re-vamped our structure to a simple choice of three levels depending on how many of the strategies you wish to access. You can see more details here on our website.

3 Comments

  1. Leonard Peters June 1, 2022 at 2:47 am - Reply

    Hello Rob, how do I know what platform to use and how much to invest ?

    • EWO Trader June 2, 2022 at 10:06 pm - Reply

      Hi Leonard, Thanks for the question. In terms of how much to invest, we size all of our trade alerts at $500 or less so that a subscriber with a small account can still participate in our service while observing good risk management practices (i.e. never have a large amount of your trading capital in one trade). If you have more trading capital you could increase the amount of each trade, however we still highly recommend limiting the amount of capital in any one trade to 5% of your account at most. In terms of which platform, and I’m assuming your asking about a brokerage platform, we really can’t make a recommendation due to the fact that we are unlicensed to do so. My suggestion is research option online to find one that most suits you, ideally one that specializes in options trading. Thanks!

  2. https://translate.google.com/ December 23, 2022 at 9:45 pm - Reply

    Keep on writing, great job!

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